- Cleantech Lithium shares rallied 3.45% after an update on resource drilling.
- The company has already encountered sub-surface brine aquifers in Chile.
- Investors cheered the news despite concerns about nationalisation.
The Cleantech Lithium PLC (LON: CTL) share price rallied 3.45% after announcing that it had encountered sub-surface brine aquifers at Chile’s Francisco Basin and Laguna Verde mining projects.
The lithium miner reiterated its ultimate goal of producing lithium with close to zero emissions at its site, which sets it apart from its global competitors. However, it is not easy to have a mining operation with zero emissions, and only time will tell if the company can achieve this ambitious target.
Cleantech is currently conducting a resource drilling campaign at the two locations. It expects to release the results from six drill holes in Q2 2022, a maiden resource estimate for Francisco Basin, and an upgraded JORC resource for Laguna Verde.
Investors cheered the news, as evidenced by the rally in Cleantech Lithium shares, but the move could have been more pronounced. The shares had given up some of their gains at writing as sellers took over.
The company said the updated JORC estimates would be used for a feasibility study at Laguna Verde. Additionally, Cleantech Lithium joined the National Mining Society in Chile – SONAMI, a trade association for the Chilean mining sector.
Investors are concerned about the current ongoing discussion about nationalising some of Chile’s largest lithium and copper mines. Some parties have presented proposals for the nationalisation of the mines, but they are yet to be approved by the convention.
Suppose the proposals to nationalise lithium and copper mines are approved. In that case, foreign mining companies might have to forfeit their mines to the state, which does not bode well for investors owning shares in Chilean miners.
However, the draft is still in the early stages and might not see the light of day since it has to be approved by two-thirds of the convention of 155 members.
Aldo Boitano, Cleantech Energy’s CEO, said: “As outlined in our recent Admission to AIM announcement, it is our intention to produce low or zero-emissions lithium, a critical advantage in the fast-growing EU market, by the second half of 2024,”
“The resource drilling programmes, which commenced in January 2022 at Laguna Verde and in March 2022 at Francisco Basin, are progressing well and importantly, in line with management’s expectations, confirming the presence of sub-surface brine aquifers at both projects.”
Cleantech Lithium shares were listed on the London Stock Exchange on 17 March 2022, raising £5.6 million but have since fallen from their IPO high of 36.6p.
*This is not investment advice. Always do your due diligence before making investment decisions.
Cleantech Lithium share price.
The Cleantech Lithium share price rose 3.45% to trade at 30p, rising from Friday’s closing price of 29.0p.