Clontarf up 64% on Bolivian update

Source: Proactiveinvestors UK
Author: Ian Lyall

Clontarf Energy Plc (AIM:CLON)'s shares shot up 64% in early trading after the company updated on progress in Bolivia, while also confirming its ability to to bring in additional investment.

In an update accompanying its long-out-of-date prelims (to December 31, 2023), Clontarf told investors it is focused on advancing its lithium business, participating in the country's 2024 convocatoria (a formal government process), and supporting the EU's Critical Resource Initiative.

Laboratory testing of samples from the Bolivian State Lithium Company (YLB) yielded encouraging results. The NEXT-ChemX pilot plant is under construction in India.

Clontarf plans to submit detailed information to Bolivian authorities under the new "stream 3" of the convocatoria. The authorities have adjusted dates and requirements, creating confusion among shareholders. However, Clontarf remains optimistic about its schedule.

The company is now in stream 3 of Phase 4, competing with other international companies. The EU Commission's support has streamlined selection criteria, enhancing Bolivia's lithium export potential. Clontarf aims to expedite bulk sample collection and pilot plant site visits.

In the same update, investors were told that, subject to technical verification of its exploration projects, and permitting, Clontarf is "confident of adequate funding, whether in London or Australia, for near- to medium-term ongoing activities".

"Our preference, where possible, is to avoid dilution by relying on off-takers or EU institutions for necessary infrastructural support," added chairman David Horgan.

In the first hour of London trading, the stock was up 0.01p at 0.025p. That values Clontarf at a micro-cap £1.35 million.