Metals One (MET1) is investing £1 million in CleanTech Lithium, part of a wider £4.3 million placing announced on 11 August.
As a result, Metals One will own approximately 10.7% of CleanTech Lithium's enlarged issued share capital. The investment is conditional on CleanTech Lithium's shareholders approving certain resolutions to issue the placing shares at a general meeting expected to be held on 29 August 2025.
CleanTech Lithium is an exploration and development company advancing lithium projects in Chile.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Viento Andino, and an exploration stage project in Arenas Blancas, located in the lithium triangle, a leading centre for battery grade lithium production.
CleanTech Lithium is committed to utilising direct lithium extraction (DLE) with reinjection of spent brine resulting in no aquifer depletion. DLE is a transformative technology which removes lithium from brine with higher recoveries, short development lead times and no extensive evaporation pond construction.
CleanTech Lithium's portfolio of projects in the Chilean part of the lithium triangle have a combined total JORC resource estimate of 2.55 million tonnes of lithium carbonate equivalent.
Completed scoping studies showing strong economics. The Laguna Verde project is at the preliminary feasibility stage. This is well-advanced and will be finalised once the CEOL (Special Lithium Operation Contract) and resource area is determined.
CleanTech Lithium's placing enables it to fund the acquisition of additional licences to advance the Laguna Verde Project, complete and publish the PFS and DLE technical work, and provides general working capital.
The publication of the PFS, which is expected to occur when CleanTech Lithium is entered into a streamlined CEOL process, will assist the company in various discussions when it will be seeking to introduce a strategic investor into the project.
"This investment in CleanTech Lithium further diversifies Metals One's critical minerals commodity exposure,” said Craig Moulton, chairman of Metals One.
“Lithium is a key metal for the green transition with long-term fundamentals that point to sustained demand growth into the next decade. We regard this is an opportunistic low value entry into what is expected to be Chile's next major lithium project with key value catalysts in the near-term that will position CleanTech Lithium for a significant re-rating."
View from Vox
Shares in Metals One rose more than 10% on the news, suggesting that the market’s view of lithium is shifting to a more positive position. CleanTech has been in operating in Chile for some time now, and has excellent relations with the locals. It looks like a significant enhancement to the Metals One portfolio.