CleanTech Lithium expands foothold in Argentina

CleanTech Lithium (LON: CTL) has expanded its presence in Argentina by securing options to acquire two lithium brine properties in the Salar de Antofalla region. The company signed agreements to take full ownership of the Genoveva and Sal de Litio 1 properties, forming the Antofalla project, located approximately 80 km from its flagship Laguna Verde project in Catamarca Province.

The deal brings CleanTech into Argentina's largest undeveloped lithium area, with the potential for shared infrastructure and processing facilities across its regional projects. Shares of CleanTech surged 7.4% in London following the announcement, closing at 7.25 pence each and resulting in a market value of £25.5 million ($34 million).

The company plans to initiate exploration at Antofalla in 2027, while Laguna Verde will remain its primary development focus. CEO Ignacio Mehech expressed excitement about the addition, stating that the three projects have significant development synergies and could benefit from a centralized conversion facility in Copiapó. CleanTech will pay $525,000 in the first year and an additional $1.4 million in scheduled payments between 2027 and 2031, covering the $1.93 million acquisition through existing cash resources.

The agreement allows CleanTech to potentially acquire both properties outright, although their exploration potential remains to be determined. Management believes that integrating Antofalla with Laguna Verde and its Viento Andino project could reduce future development costs through shared infrastructure. Mehech emphasized that while the Laguna Verde project remains the main priority, the Antofalla deal provides strong long-term value enhancement for shareholders.

The planned 2027 exploration program will provide an early assessment of Antofalla's resource potential and help determine its role in CleanTech's broader South American lithium strategy.