Clontarf Energy Plc (AIM: CLON) saw its shares surge by 86% in early trading following an update on its progress in Bolivia and its ability to attract additional investment.
In a statement accompanying its outdated preliminary results (as of December 31, 2023), Clontarf informed investors that it is concentrating on advancing its lithium business, participating in Bolivia’s 2024 convocatoria (a formal government process), and supporting the EU’s Critical Resource Initiative.
Laboratory tests on samples from the Bolivian State Lithium Company (YLB) showed promising results. Additionally, the NEXT-ChemX pilot plant is currently being constructed in India.
Clontarf plans to submit detailed information to Bolivian authorities under the new “stream 3” of the convocatoria. Despite changes in dates and requirements causing some confusion among shareholders, Clontarf remains optimistic about its timeline.
The company is now in stream 3 of Phase 4, competing with other international firms. Support from the EU Commission has streamlined the selection criteria, boosting Bolivia’s potential for lithium exports. Clontarf aims to accelerate the collection of bulk samples and organize pilot plant site visits.
In the same update, investors were assured that, pending technical verification and permitting of its exploration projects, Clontarf is “confident of securing adequate funding, whether from London or Australia, for near- to medium-term activities.”
“Our preference, where possible, is to avoid dilution by relying on off-takers or EU institutions for necessary infrastructural support,” stated chairman David Horgan.
In the first hour of London trading, the stock increased by 0.01p to 0.029p, valuing Clontarf at a micro-cap of £1.61 million. 09:08 BST
