(Alliance News) - Clontarf Energy PLC on Wednesday announced the heads of agreement for a potential 50:50 joint venture with NEXT-ChemX Corp.
Contarf shares were up 65% trading at 0.12 pence per share on Wednesday morning in London.
The lithium and oil & gas exploration and production company focused on South America and Africa said the agreement would cover testing, marketing and deployment of NCX's patent pending direct lithium-ion extraction technology in Bolivia.
Clontarf said formal documentation for the JV is expected to take place within the next 30 days.
NCX is a Los Angeles, California-based ion extraction technology developer. The company's technology mimics biophysical processes to induce ions to cross a membrane barrier, and has proved effective in laboratory testing.
Clontarf said the technology limits energy and water consumption during lithium extraction, and creates minimal waste.
The company said NCX is preparing a pilot plant in Texas to test large volumes of brines and move towards feasibility and commercialisation, subject to USD500,000 in funding from Clontar, as an exclusivity fee for the use of NCX technology. Extraction is set to begin in March.
NCX will then issue USD500,000 in shares to Clontarf at its next financing.
Clontarf is also in talks with Bolivia's state-owned lithium company to test NCK's membrane technology on priority brines.
Chair David Horgan said: "The world needs a dramatic increase in battery grade lithium salts output. Projected global demand cannot be delivered without major Bolivian output. The delay has been the shortcomings of evaporative ponds at high altitude, some rainfall and impurity levels.
"We believe that these constraints may be bypassed through innovative technology. In minimising environmental impact, we have worked to reduce water use by 95%, and minimise the footprint of on-site operations."
By Harvey Dorset, Alliance News reporter
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Clontarf (CLON)