CleanTech Lithium (AIM:CTL), the AIM-listed lithium developer advancing projects in Chile, has amended the sale and purchase agreement for 23 mining concessions at its Laguna Verde project.
The Settlement and Amendment Agreement, signed with the vendors on 19 August alongside subsidiaries CleanTech Laguna Verde SpA and Atacama Salt Lakes SpA, cuts the cash consideration by $21 million to $14 million, a 60% reduction from the original $35 million deal announced in April 2024.
Of the remaining $11.5 million, $9 million is now contingent on lithium sales-volume milestones at Laguna Verde being achieved, with $2.5 million already paid.
The company will also issue 6.6 million new shares to the vendors in three tranches, each tied to specific milestones and subject to a six-month lock-in, with the first 2.2 million shares due for AIM admission around 24 August, representing around 0.6% of enlarged voting rights.
Under the deal, vendors have five days to irrevocably withdraw all legal and criminal claims against the CleanTech group, resolving disputes referenced in the company's December and April announcements.
"By taking these actions and becoming Company shareholders, the LV Vendors are signalling their belief and long-term support for our Laguna Verde project," said chief executive Ignacio Mehech.
He added that the company can now focus on its strategic partner selection process, an ASX listing application recently submitted, and formal ratification of its Special Lithium Operating Contract for Laguna Verde.
SP Angel, in a note, highlighted that the company’s immediate focus will be on securing a strategic partner, the CEOL operating permit and the environmental study.
News Intelligence what this means for the company
CleanTech Lithium has renegotiated its Laguna Verde acquisition down 60% in cash outlay—from $35 million to $14 million—while settling all vendor litigation and converting vendors into shareholders with milestone-linked payouts. This materially improves the company's cash position and removes a source of legal distraction as it pursues strategic partner selection, an ASX listing, and ratification of its Special Lithium Operating Contract.
The deal cuts near-term cash burn on an asset acquisition and aligns vendor interests with project success through equity and contingent payments, reducing execution risk. However, the company remains pre-revenue and dependent on external financing and regulatory approval (CEOL ratification now expected H2 2026); this renegotiation does not change that dependency.
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