(Sharecast News) - Clontarf Energy announced on Friday that it had completed all necessary conditions for the joint venture with NEXT-ChemX to come into effect.
The AIM-traded firm's announcement came after an earlier statement on the joint venture, made on 28 March.
As part of the agreement, Clontarf paid NEXT-ChemX $0.5m.
Additionally, Clontarf said it would now issue 385 million consideration shares in its own capital to NEXT-ChemX, half of which would be subject to a 12-month lock-in requirement.
NEXT-ChemX had also provided Clontarf with proof of funds amounting to $0.5m.
"Completion of Clontarf's joint venture with our preferred direct lithium extraction partner is another important milestone," said chairman David Horgan.
"Part of the transaction is the current and future swapping of shares between Clontarf Energy and NEXT-ChemX companies.
"We are also considering ways to extend Clontarf's upside potential beyond our promising Bolivian joint venture."
Horgan said lithium demand was continuing to grow, as were purity requirements in the lithium-ion battery industry.
"Recent discussions in Asia reinforced our belief in market demand, particularly for environmentally-friendly and cost-efficient lithium from brines.
"Our team has been working with various licence-holders and regulatory bodies to provide sufficient volumes of priority brines for laboratory test-work."
Once those tests had yielded adequate results, David Horgan said Clontarf expected to move to pilot plant volumes.
"This work should enable confirmation of the commerciality of the NEXT-ChemX direct lithium extraction process, and move to the application of the technology across a number of lithium brine projects."
At 1117 BST, shares in Clontarf Energy were down 8.92% at 0.11p.
Reporting by Josh White for Sharecast.com.
Clontarf (CLON)