Clontarf Energy PLC on Monday said it raised £1.3 million through the placing of and subscription for two billion shares at a price of 0.065 pence each.

The lithium, oil and gas exploration & production company said the placing shares represent 46% of its enlarged share capital.

Shares in South America and Africa-focused Clontarf were down 13% to 0.072p each in London on Monday afternoon.

The net proceeds will be used to advance Clontarf’s lithium projects in Bolivia and petroleum projects in Ghana, Australia and elsewhere.

It said it expects the admission of shares to become effective on or around Thursday.

Clontarf also said it has advanced its discussions with the Bolivian authorities regarding planned future drilling in Bolivia. This follows tests results in September indicating lithium auger samples with 1,420 milligrams per litre at one target salt-lake and 1,010mg/l at another. It said the overall grade averaged at 211mg/l.

It anticipates global market demand will be at least twice current global supplies, with tighter purity targets for lithium-ion battery industries.

Clontarf said the best way to deliver these volumes and qualities are via direct lithium extraction technologies, now under development by various companies.

‘There are few commercial alternatives to serve anticipated lithium demand without direct lithium extraction processing on Bolivian salt-lakes,’ said Chair David Horgan. 

Clontarf said it will provide further updates on Bolivian lithium as well as Ghanaian and Australian projects ‘when appropriate’.

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