Utility of Working Contracts in Chile

Highlights:

• Following discussions with Authorities representatives and different stakeholders in Chile, CleanTech Lithium´s wholly-owned subsidiaries, Atacama Salt Lakes SpA and Laguna Negro Francisco SpA, have submitted purposes for working contracts (“CEOLs”) for the Firm’s two superior initiatives Laguna Verde and Francisco Basin – These are the primary CEOL purposes to have been made in Chile because the announcement of the Nationwide Lithium Technique in April 2023.
• Within the purposes, CTL said that it’s open to inviting the state nationwide mining firm, ENAMI, to associate with the Firm as a minority stake associate in each the Laguna Verde and Francisco Basin initiatives by way of normal three way partnership (“JV”) preparations according to different such JV preparations ENAMI has in place within the mining sector in Chile.
• Securing the working contracts will:
  • be an essential milestone in direction of business manufacturing of lithium from the Tasks.
  • assist CTL safe funding for building of the Tasks thus contributing to the long run provide of sustainable lithium from Chile to the worldwide battery marketplace for the clear vitality transition.
  • open the door for extra substantive discussions with potential strategic and offtake companions for the Firm’s deliberate lithium manufacturing.
• The Firm will work with the authorities in Chile over the approaching months to hunt approval of those purposes that are submitted underneath the phrases of the Nationwide Lithium Technique and in compliance with present Chilean legislation.

Fig 1. Submission paperwork for Laguna Verde and Francisco Basin working contracts

The Firm’s JORC assets throughout the 2 initiatives whole >2.7 million tonnes of lithium carbonate equal (“LCE”) following a number of drilling campaigns and in depth useful resource analysis over the previous two years. Securing working contracts from the State will allow the Firm to maneuver in direction of business and sustainable lithium manufacturing utilizing Direct Lithium Extraction (“DLE”). By inviting the State, by way of one in every of its State entities ENAMI, to develop into a minority associate in each initiatives, CleanTech Lithium indicators its help of the Authorities of Chile’s technique of selling public-private partnerships and its ambition to develop into the main producer of lithium to the worldwide battery manufacturing market.

The Firm’s JORC assets throughout the 2 initiatives whole >2.7 million tonnes of lithium carbonate equal (“LCE”) following a number of drilling campaigns and in depth useful resource analysis over the previous two years. Securing working contracts from the State will allow the Firm to maneuver in direction of business and sustainable lithium manufacturing utilizing Direct Lithium Extraction (“DLE”). By inviting the State, by way of one in every of its State entities ENAMI, to develop into a minority associate in each initiatives, CleanTech Lithium indicators its help of the Authorities of Chile’s technique of selling public-private partnerships and its ambition to develop into the main producer of lithium to the worldwide battery manufacturing market.

Chile holds the biggest reserves of lithium on the earth however presently solely two corporations function business lithium manufacturing in-country. The working contract purposes have been submitted to the Ministry of Mining, outlining the Firm´s plan to utilise DLE for the sustainable extraction of lithium from sub-surface aquifers, according to the Nationwide Lithium Technique introduced in late April 2023. DLE gives an answer to minimising aquifer depletion whereas that includes a shorter time to manufacturing and far larger recoveries of lithium when in comparison with conventional extraction strategies utilizing evaporation ponds.

CTL’s Board has adopted authorized recommendation and, after endeavor common dialogue with related Authorities officers, native communities and different stakeholders over latest months, formally submitted the detailed (500+ web page) CEOL purposes on 6 September 2023. These purposes have been formally introduced to the related Chilean authorities and the Firm now expects each purposes to undergo a proper overview course of over the subsequent 3-6 months.

Aldo Boitano, Chief Govt Officer, CleanTech Lithium stated: “We’re the primary firm in Chile to use for the working contracts because the Nationwide Lithium Technique was introduced in April 2023. We consider this marks a serious step in direction of advancing lithium provide from Chile to the worldwide battery manufacturing and EV market.

“Following shows on the Nationwide Lithium Technique by Ministers, the Authorities has been clear on the necessity for establishing public-private partnerships to develop the lithium business. Attributable to our progress so far, we consider it’s the proper time for CleanTech Lithium to use for the working contracts for Laguna Verde and Francisco Basin. Securing the working contracts will display additional confidence in our Tasks, and, in the end, allow us to safe the required funding to scale in direction of manufacturing.”

“We’re open to dialogue with the Authorities and related stakeholders about how we will obtain our shared ambition in supporting Chile’s imaginative and prescient to be the world’s chief in lithium manufacturing, a press release made lately by President Boric. We’re open to inviting ENAMI to affix CTL as a minority associate as a part of the brand new public-private partnership technique and consider this might be helpful for all events. Such partnership would complement and improve our ongoing engagement and actions with native communities, which is integral to creating an enduring optimistic influence.”