At the end after examining the pgrs link I went to the guys own project and examined the project.clj
Turns out the repo has to be called local:
:repositories {"local" "file:repo"}
then you have to add the dependency:
:dependencies [[org.clojure/clojure "1.4.0"]
[org.clojure/tools.cli "0.2.2"]
[org.clojure/java.jdbc "0.2.3"]
[mylib "0.1"]]
In the buildscript here is what I have:
mkdir repo
FILE_NAME=`ls -c ../path/to/mylib-* | head -n 1`
mvn install:install-file -Dfile=$FILE_NAME -DartifactId=mylib -Dversion=0.1 -DgroupId=mylib -Dpackaging=jar -DlocalRepositoryPath=repo -DcreateChecksum=true
This works on my Ubuntu 12.04 machine with java 7 (oracle) and Leiningen 1.7.1