CleanTech Lithium secures 40-year operating contract in Chile
CleanTech Lithium (AIM: CTL) says it has agreed terms with Chile’s mining ministry on a “special operating contract” (CEOL) for its flagship Laguna Verde project.
The is a “transformational de-risking event,” the lithium developer said in a statement on Tuesday, as it provides “long-term contractual certainty directly with the Chilean state,” underpinning the investment case and accelerating the path to production.
The contract is expected to run for 40 years and cover all phases of the project, from exploration and evaluation to construction, production and closure, over a licensed area of 153 km2.
CleanTech has been working on the Laguna Verde project since 2021, looking to tap into the lithium resources beneath the brine aquifer. Multiple drilling programs to date have delineated a JORC-compliant resource totalling 1.9 million tonnes with average lithium carbonate grades of 174 mg/L, ranking it one of the largest in Chile outside the Atacama Salar.
A scoping study released in 2023 outlined a potential 30-year operation capable of producing 20,000 tonnes of lithium carbonate equivalent per annum. A pre-feasibility study is currently underway, with completion expected this quarter, according to the company website.
“The agreement of the CEOL demonstrates the strong alignment between Laguna Verde and Chile’s strategy to expand lithium production responsibly and sustainably,” CleanTech Lithium’s CEO Ignacio Mehech said.
Laguna Verde represents one of few projects to be awarded a CEOL in Chile. As with all other decrees in Chile, a final review is required by the Comptroller General’s Office to ratify the contract.
CleanTech’s stock surged 4.8% in London for a near 52-week high. Its market capitalization is approximately £22.3 million ($30 million).