TIDMCLON
RNS Number : 9364P
Clontarf Energy PLC
15 February 2023
15th February 2023
Clontarf Energy plc
("Clontarf" or "the Company")
JV HoA on Direct Lithium Ion Extraction Technology in
Bolivia.
Clontarf Energy plc (AIM: CLON) is pleased to announce a heads
of agreement around the potential formation of a 50:50 Joint
Venture with US based, OTC Markets traded, technology company,
NEXT-ChemX Corporation ("NCX") covering testing, marketing, and
deploying of NCX's proprietary (patent pending) direct lithium ion
extraction ("DLE") technology in Bolivia. Formation of the JV is
subject to final due diligence and the parties entering into formal
documentation, which is intended to occur within the next 30
days.
NCX's ion extraction technology uses the surface area of hollow
fibre membranes to extract lithium ions from brines. The technology
is a continuous process, and does not require high pressure,
temperature or electrolysis. It does not rely on osmotic processes,
or costly filtration techniques electrolysis, but instead mimics
biophysical processes of natural principals to induce ions in
solution to cross the membrane barrier. This mimics how mammal
organisms remove wastes from a donor liquid without physically
mixing with an acceptor liquid.
The technology has been proven to be effective and efficient
during laboratory testing, and in the Board's view, NCX's
technology is an innovative approach to direct lithium
extraction.
Environmental attractions include limited energy and water
consumption, extracting the targeted ions and generating minimal
waste. It is suited for lithium extraction from Bolivian brines,
where evaporative ponds are not optimal due to rainfall conditions,
altitude and magnesium content.
Laboratory / bench test analyses extracted ions from solutions
at ambient temperatures and pressures - even in very low
concentrations.
The next step is to test selected brines from potential sources.
NCX is assembling, subject to funding being delivered from Clontarf
(per the below), a pilot plant in Texas to test large volumes of
brines, moving towards feasibility and commercialisation. The plant
will test circa 1,000 litres of each specific brine, with an
overall 20,000 litre trial run size, allowing a customised NCX DLE
commercial system to be assembled (in modular form) and placed on
site for field testing.
The NCX DLE Technology is patent pending, with intellectual
property protection managed by Patent Attorneys specialised in
chemical processing and materials science.
Clontarf is in discussions with Bolivia's state owned lithium
company ("YLB") to test NCX's proprietary DLE membrane technology
on priority brines, which may include identified salares on which
preliminary samples have been taken.
Negotiations with the proper authorities covering the source and
volumes of brines to be processed, and on which commercial terms,
are expected to follow successful pilot plant operation - subject
to applicable laws.
The pilot plant testing and extraction will begin during March
2023, including both preliminary testing, as well as pilot plant
operations, with results expected by May 2023.
Heads of Agreement Terms:
A 50:50 joint venture company to be formed on completion of due
diligence covering the exclusive rights to the marketing, testing
and deployment of the NCX DLE technology in Bolivia.
Clontarf Energy plc to contribute $500,000 towards the pilot
plant construction and testing as an exclusivity fee for the use of
the NCX technology.
NCX will then issue shares equal to $500,000 at its next
financing (CHMX:OTC) to Clontarf Energy plc .
Clontarf Energy plc will issue shares as follows to NCX:
i. 385 million new Ordinary Shares on proceeding with the Pilot
Plant $500,000 contribution from Clontarf;
ii. 250 million new Ordinary Shares after successful pilot
processing of Bolivian brines through the NCX pilot plant; and
iii. 250 million new Ordinary Shares after entry into a
construction and processing contract between the JV and the
Bolivian authorities on processing of Bolivian brines utilising NCX
processing technology.
NCX, or its nominee, will have the right, but not the
obligation, to invest GBP250,000 into the Company at a price of
GBP0.00065, for 30 days from the signature of this HoA.
As noted above, formation of the JV is subject to final due
diligence and the parties entering into formal documentation (based
on the terms of the Heads of Agreement), which is intended to occur
within the next 30 days.
Chairman, David Horgan, commented:
"The world needs a dramatic increase in battery grade lithium
salts output. Projected global demand cannot be delivered without
major Bolivian output. The delay has been the shortcomings of
evaporative ponds at high altitude, some rainfall and impurity
levels.
"We believe that these constraints may be bypassed through
innovative technology.
"In minimising environmental impact, we have worked to reduce
water use by 95%, and minimise the footprint of on-site
operations.
"Any Bolivian operations will conform with applicable laws, in
partnership with the State Lithium Company, and respect high
international operating standards."
ENDS
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR").
For further information please visit http://clontarfenergy.com
or contact:
Clontarf Energy
David Horgan, Chairman
Jim Finn, Director +353 (0) 1 833 2833
Nominated & Financial Adviser
Strand Hanson Limited
Rory Murphy
Ritchie Balmer +44 (0) 20 7409 3494
Broker
Novum Securities Limited
Colin Rowbury +44 (0) 207 399 9400
Public Relations
BlytheRay
Megan Ray +44 (0) 207 138 3206
Teneo
Luke Hogg
Alan Tyrrell +353 (0) 1 661 4055
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END
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