GCICleanTech Lithium PLC Announces £2.5 Million Placing Results
(CTL ), a Chile-focused lithium exploration and development company, has announced the successful results of a recent oversubscribed placing, raising £2.5 million in gross proceeds. The funds will support the flagship Laguna Verde project, targeting the production of battery-grade lithium carbonate. This placing forms part of the company’s broader strategy, including a planned dual listing on the Australian Securities Exchange (ASX).
Key Details of the Placing
- Amount Raised: £2.5 million
- Shares Issued: 22,727,266 new ordinary shares at 11 pence each
- Share Capital Impact: The new shares represent about 13.54% of
the enlarged share capital, totaling 167,889,592 shares post-
admission - Primary Use of Funds: Development of Laguna Verde project,
strategic lithium carbonate production, and working capital - Broker Warrants: Issued 1,389,388 warrants, exercisable at 11
pence for five years
Related Party Transactions and Director Participation
Regal Funds, a significant existing shareholder with a 15% stake, subscribed for an additional 1,727,272 shares, constituting a related party transaction under AIM rules. CleanTech's director Tommy McKeith also participated, acquiring 454,545 shares, increasing his stake to 0.54% of the company.
Admission and Total Voting Rights
The admission of new shares to AIM is expected on 14 October 2024. Post-admission, CleanTech Lithium’s total voting rights will be based on 167,889,592 shares, which shareholders can use for disclosure
requirements per FCA guidelines.
View from Vox: CleanTech Lithium’s Strategic Path in Chile’s Lithium Industry
CleanTech’s £2.5 million placing signals continued investor interest in sustainable lithium production. Despite challenging market conditions, the oversubscription reflects confidence in CleanTech’s strategic direction and its unique approach to lithium extraction in Chile.
A Sustainable Approach in Chile
CleanTech's commitment to using Direct Lithium Extraction (DLE) technology aligns with Chile’s National Lithium Strategy, which prioritises sustainable mining practices and public-private partnerships. This technology not only enhances lithium recovery rates but also reduces environmental impact compared to traditional methods. By reinjecting spent brine back into the aquifer, CleanTech minimises water depletion—a critical advantage in the environmentally sensitive lithium triangle region.
Opportunities and Risks
With significant funds directed towards Laguna Verde, CleanTech is positioning itself as a key player in the sustainable lithium sector. The company is advancing its role within Chile, a country that supplies a major portion of the world’s lithium. The planned dual listing on the ASX could also broaden CleanTech’s access to investment capital and further
solidify its market presence. CleanTech’s placing underscores its potential to capitalise on the growing demand for responsibly sourced lithium. As global electric vehicle and battery markets expand, CleanTech’s role in the lithium supply chain could offer substantial growth opportunities for retail investors who prioritize sustainability and innovation.
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