CleanTech Lithium PLC on Wednesday said it raised £8 million from the placing of new shares it had announced on Tuesday, which it will use to advance technical work and drilling at two of its projects.

The Chile-focused lithium exploration and development company said it will issue 36.4 million new shares, or around 25% of its enlarged share capital, at 22 pence each.

Shares in CleanTech Lithium were down 13% to 22.03p each on AIM in London on Wednesday afternoon. It has a market capitalisation of £23.4 million at that price.

Clean Lithium said the funds will be used to provide flexibility for additional technical work at its Laguna Verde project and drilling at Francisco Basin.

It said the equity raise is subject to a shareholder vote at a general meeting on December 14.

On Tuesday, CleanTech Lithium had said it intended to raise around £6.0 million. The minimum fundraise target was increased due to ‘significant’ investor demand, CleanTech Lithium said on Wednesday.

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