CleanTech Lithium flags delay to Chilean government approval process

CleanTech Lithium reported a delay in the Chilean government’s decision on its application for a special lithium operating contract (CEOL) for the Laguna Verde project on Friday.

The AIM-traded company said it had previously expected confirmation in early April on whether it would proceed to direct negotiations under a simplified award process.

According to CleanTech, the initial timeline indicated that after applications closed on 31 January, the relevant government departments would have up to 50 business days to review and assess submissions.

That would culminate in an administrative act confirming eligibility for direct negotiation; however no official update had yet been issued.

Following discussions with Chile’s Ministry of Mining, the company said it now understood that the review process remained ongoing for all applicants.

CleanTech said it would provide a further update as soon as formal communication from the authorities was received.

The CEOL is a critical component for progressing the Laguna Verde project, one of CleanTech Lithium’s key development assets in Chile.

“Clearly, the process is taking a little longer than we had initially anticipated but we look forward to the response when the ministry has completed its review process,” said executive chairman and interim chief executive officer Steve Kesler.

At 1115 BST, shares in CleanTech Lithium were down 5.64% at 9.2p.

Reporting by Josh White for Sharecast.com.