CleanTech Lithium raises £4.77m in oversubscribed placing

CleanTech Lithium PLC (AIM:CTL) has conditionally raised £4.77 million through an oversubscribed placing, giving the Chile-focused lithium developer funds to push ahead with critical Laguna Verde work while it continues talks with potential strategic partners.

The AIM-listed company placed 79.51 million new shares at 6p each, split between a £2.35 million firm placing and a £2.42 million conditional placing.

Investors in the placing will receive one warrant for every two shares subscribed, exercisable at 9p, representing a 50% premium to the placing price.

CleanTech said the proceeds will be used for Laguna Verde licence acquisition costs, environmental impact assessment work now on the project’s critical path, refinement of direct lithium extraction processes, engineering studies for capex and opex optimisation, ASX dual-listing costs and working capital while a strategic partner is selected.

The fundraising follows the company’s announcement that convertible loan note holders have agreed to convert outstanding amounts of AU$5.06 million, plus £758,022, into 64.46 million new shares.