CleanTech Lithium (AIM:CTL) is gearing up to make its debut on the Australian Securities Exchange (ASX) in early October once it completes an initial public offer of up to $20 million.
The offer of up to 66.7 million chess depositary interests (CDIs) at $0.30 each, along with one attaching option for every CDI subscribed for, was initially slated to close late yesterday (9 September) but has been extended by two weeks while CleanTech waits on conditional approval from the ASX.
The IPO is now expected to close on 23 September.
CleanTech, which is currently listed on London’s secondary AIM exchange and the Over-the-Counter (OTC) market in the US, is aiming to raise at least $10 million.
If successful in meeting the minimum ASX requirements to list, the date the company anticipates it will now begin trading is 7 October (previously 26 September), under the ticker ‘CTL’.
CleanTech has a market capitalisation of around ￡23.6 million ($46.4 million) on the AIM exchange and US$12.9 million ($19.3 million) on the OTC market.
The company’s projects are located in Chile, spanning over 1,250km2 in the Lithium Triangle.
Its flagship Laguna Verde Project is advancing towards completion of a Prefeasibility Study (PFS) and upgrade of the JORC-compliant resources of 1.8 million tonnes of lithium carbonate equivalent to reserves.
CleanTech is also getting closer to producing battery grade lithium carbonate for product qualification by potential buyers from the direct lithium extraction (DLE) pilot plant at its Laguna Verde Project.
DLE is a proven lithium extraction method used on brine deposits and is much less time consuming and water-intensive than other methods.
It focuses on selective extraction directly from lithium-rich solutions and the reinjection of brine back into aquifers. DLE also does not require evaporation ponds, meaning it has a smaller environmental footprint.
The PFS is targeted for completion in the final quarter of 2024.
Fulcrum Lithium is also advancing down the path towards an ASX listing, anticipating it will light up the boards on 11 October under the ticker ‘FUL’.
The IPO comprises the issue of 40 million shares at $0.25 per share to raise $10 million.
The Norman Seckold-chaired explorer has assembled a portfolio of lithium projects in Nevada, US in the same lithium belt that hosts Albemarle Corporation’s (NYSE:ALB) Silver Peak Mine, the only lithium producing mine in the US.
Fulcrum says exploration shows that claystone-hosted lithium is present at the company’s projects. The cash raised from the IPO will be used to step up exploration at the Nevada projects.
Seckold has spent over four decades in the mining sector having chaired several companies including Moruya Gold Mines, Pangea Resources, Timberline Minerals, Perseverance Corporation, Valdora Minerals, Viking Gold, Mogul Mining, Santana Minerals and Bolnisi Gold.
He is currently Chairman of Alpha HPA (ASX:A4N), Nickel Industries (ASX:NIC) and Sky Metals (ASX:SKY).
Lithium miners right now, however, are feeling the sting of much lower prices.
Mineral Resources (ASX:MIN) has seen its share price plunge over 61%, from nearly $80 per share in May 2024 down to $30.65 yesterday (9 September).
Falling lithium prices prompted the major to scrap its dividend as profits tumbled 79% in the 2024 financial year.
During the period, Mineral Resources was selling its lithium for US$1,279 per tonne, a big discount to the US$5,267 per tonne price it was getting in the 2023 financial year.
According to Bloomberg data, lithium spodumene prices have fallen from over US$6,000 per tonne in late 2022/early 2023 to US$845 currently.
Meanwhile, lithium carbonate is fetching around US$10,194 ($15,300) per tonne, down from over US$80,000 per tonne in late 2022, according to Trading Economics data.
Write to Angela East at Mining.com.au
Images: CleanTech Lithium & Fulcrum Lithium
