CleanTech extends Laguna Verde payment terms

22nd Oct 2024 11:39

(Sharecast News) - Chile-focussed sustainable lithium developer CleanTech Lithium announced an agreement to extend the payment terms for the second stage of its acquisition of the Laguna Verde licences on Tuesday.

The AIM-traded firm said the payment of $1.25m, originally due on 21 October, would now be made following the company's anticipated listing on the ASX in Sydney, expected later in the year.

It said the extension would allow it more time to complete the ASX listing process.

The company confirmed that the extension would not impact its ownership of the Laguna Verde option licences, which it continued to wholly hold.

It said those licences, acquired as part of a sales and purchase agreement announced in April, were integral to its future plans.

The licences would also form part of the company's application for a Special Lithium Operating Contract (CEOL) with the Chilean government, which it planned to submit by the end of the year.

CleanTech Lithium said it was progressing well with its advisers on the ASX listing, and would provide further updates on the timeline in the near future.

The Laguna Verde project had meanwhile made significant strides since the initial announcement, the board said.

"I am grateful for the vendors understanding and agreement to extend the payment deadline in light of the ASX listing delays," said executive chairman and interim chief executive officer Steve Kesler.

"This collaborative approach underscores the strength of our partnership and reinforces our commitment to mutual success."

As the company works through the phase, Kesler said it was "highly optimistic" about the long-term outlook for the lithium market.

"The demand for lithium will continue to rise, driven by the needs of electric vehicles and energy storage solutions.

"We believe we are well positioned in Chile to become the next lithium producer to help meet this demand."

At 1050 BST, shares in CleanTech Lithium were down 3.67% at 10.5p.

Reporting by Josh White for Sharecast.com.