REG - Clontarf Energy PLC - Bolivia Lithium Update

Clontarf EnergyAnnouncement

06/06/2024 08:15

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RNS Number : 4020R  Clontarf Energy PLC  06 June 2024

Clontarf Energy PLC Bolivia Lithium Update
RNS Regulatory News

Clontarf Energy PLC

 

 

 

6th June
2024

Clontarf Energy plc

("Clontarf" or the "Company")

Bolivia Lithium Update

3(rd) Phase of the 2024 evaporites Convocatoria

 

Clontarf Energy plc (AIM: CLON), wishes to report the following update:

Further to the Company's 6(th), 18th March, and 15th May 2024 announcements,
the Bolivian State Lithium Company ("YLB") received Clontarf's financial
materials in relation to Phase 3 of the Call for Bids ("convocatoria") for the
seven priority salares (salt pans) in Southern Bolivia.

 

Since Clontarf is an exploration company, and does not issue bonds, it does
not have a credit rating and accordingly could not provide an 'A3' or 'A-'
rating, as requested in the 2024 convocatoria tender documents.  Neither
could Clontarf's technology partner, since it is an R+D company, also without
property or fixed assets in secure jurisdictions.

 

Accordingly, Clontarf identified an offtake partner, at the encouragement of
the EU Commission, which has substantial revenues, profits and bank lines, as
well as an 'A2' short-term credit rating.  All requested documents were
submitted by the deadlines, both physically and in digital form.

 

Unfortunately, the authorities appear to have declined the 'A2' short-term
credit rating, possibly because the long-term credit rating (BBB+) was
marginally below the requested 'A3'.  This means that Clontarf hasn't passed
through to the fourth stage of the convocatoria.

 

This regrettable outcome may not be well-grounded in policy or logic: Clontarf
and its partners had undertaken to provide 100% of project capital, both from
equity markets and appropriate infrastructural funds, to be channelled via the
national borrowers.  Accordingly, there seemed little logic for bonds, bank
guarantees or ratings.  Clontarf made these points both directly, and via EU
entities.  We continue to argue this case and are optimistic that, with proof
of technology and confirmation of EU financial support, that this subject may
be revisited whether in this or a future bid round, or direct negotiations.

 

 

 

Further updates will be provided, as appropriate, in accordance with necessary
clearances from the authorities.

 

●    David Horgan, Chairman, commented: " Europe and the world need
offtake of pure Bolivian Lithium.  Europe's supplies of Critical Minerals are
vulnerable - especially in Lithium, Cobalt and Rare Earths.  China's strategy
to dominate Critical Minerals' processing, & mining has succeeded
unopposed for 25 years.  This now extends into EVs."

"In their first 2021 convocatoria, Bolivia awarded convenios to 2 Chinese and
one Russian State-backed companies.  Nonetheless, no battery-grade Lithium
has yet been exported by any of these operators.  That is why YLB embarked on
another 2024 convocatoria".

""We need a "Team Europe" effort - as no one company or country can grapple
with China and NAFTA.  We need to combine operating skills, clean technology,
with distribution & financing - including bank support - competing in all
links of the value chain."

"Finance is best linked to offtake.  Many supplier states have insufficient
financial standing to constitute reliable counter-parties."

"But market fundamentals for long-term offtake contracts are excellent: Demand
for Lithium carbonate equivalent grew 30% to circa 930k tonnes in 2023.  Few
commodities or specialty chemicals exhibit such growth.  New projects will
struggle to deliver the supply needed."

"The Bolivian 2024 convocatoria is a process that will allow several companies
to prove their technologies.  It was not a conventional bid round, in which
there is usually one winner.  The ultimate winners will be all those whose
solutions work technically and commercially."

"Clontarf Energy's technology partners are now assembling a pilot-plant at a
trusted facility in India.  We plan to process test volumes of brines at this
facility.  If plant performance confirms laboratory results this will help
Clontarf drive  forward with this important project".

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014.

ENDS

For further information please visit http://clontarfenergy.com
(http://clontarfenergy.com/)  or contact:

 Clontarf Energy                    +353 (0) 1 833 2833

 David Horgan, Chairman

 Jim Finn, Director

 Nominated & Financial Adviser      +44 (0) 20 7409 3494

 Strand Hanson Limited

 Rory Murphy

 Ritchie Balmer
 Broker                                     +44 (0) 207 399 9400

 Novum Securities Limited

 Colin Rowbury

 Public Relations                   +44 (0) 207 138 3206

 BlytheRay

 Megan Ray
 Teneo                              +353 (0) 1 661 4055

 Luke Hogg

 Alan Tyrrell

 Fia Long

 Alan Reynolds

 

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