Source - LSE Regulatory
RNS Number : 5789Q
Bacanora Lithium PLC
01 March 2021
 

1 March 2021

Bacanora Lithium plc

("Bacanora" or the "Company")

 

Completion of increased investment in Sonora Lithium Ltd by Ganfeng Lithium Co.,Ltd ("Ganfeng")

 

Following the successful financing announced on 3 February 2021, Bacanora Lithium plc (AIM: BCN), a lithium development company, is pleased to provide an update on the exercise of the option by Ganfeng to increase its investment in Sonora Lithium Ltd ("SLL"), the holding company for the Sonora Lithium Project ("Sonora" or the "Project").  

 

As announced on 1 February 2021, the completion of the updated joint venture agreement was conditional on receipt of all relevant approvals and consents from the authorities in the People's Republic of China and receipt of funds by SLL.  Completion of these approvals has now been obtained and £21,883,485 has been received by SLL. SLL has now issued 73,955,680 new ordinary shares to Ganfeng, resulting in Ganfeng owning 50% of the enlarged issued share capital of SLL.  The funds will be applied towards the development of the Project, located in Mexico.

 

The Board of SLL now comprises two Bacanora appointed Directors and two Ganfeng appointed Directors, with the Chairman being one of the Bacanora Directors.  Bacanora, the operator of the Project, has now commenced pre-development work on site, while Ganfeng will be responsible for leading the engineering and procurement for the battery grade lithium hydrometallurgical processing plant.

 

Peter Secker, CEO of Bacanora said:

"We are pleased that the approvals have now been received and that Ganfeng has completed the exercise of its option. The finalising of the engineering work with Ganfeng is proceeding well and we look forward to updating the market with further news as we head towards the start of construction."

Mr Wang Xiaoshen, Deputy Chairman of Ganfeng said:

"We are delighted to have received all relevant approvals and consents from the authorities in the People's Republic of China to complete the updated joint venture agreement in Sonora Lithium, taking our ownership to 50%. Sonora is a world-class lithium project and we look forward to bringing it to fruition in tandem with Bacanora."

 

ENDS

 

For further information please visit www.bacanoralithium.com or contact:

Bacanora Lithium plc

Peter Secker, CEO

Janet Blas, CFO

 

info@bacanoralithium.com

Cairn Financial Advisers LLP, Nomad

Sandy Jamieson / Liam Murray

 

+44 (0) 20 7213 0880

Citigroup Global Markets, Joint Broker

Tom Reid / Patrick Evans / Matthew Kenney

 

+44 (0) 20 7986 4000

Canaccord Genuity, Joint Broker

James Asensio / Thomas Diehl

 

+44 (0) 20 7523 8000

Tavistock, Financial PR Adviser

Jos Simson / Emily Moss / Oliver Lamb

Bacanora@tavistock.co.uk

+44 (0) 20 7920 3150

+44 (0) 77 8855 4035

 

Notes to editors

Bacanora Lithium Plc is an AIM-listed (ticker 'BCN') lithium development company. The Company is focused on building, in collaboration with its major shareholder and offtake partner, Ganfeng Lithium (the world's largest lithium metals producer), a 35,000 tonne per annum open pit lithium carbonate operation at its flagship asset, the Sonora Lithium Project in Mexico. The Sonora Lithium Project has 8.8 million tonnes of lithium carbonate (Li2CO3) equivalent resources, with an approximate 250-year resource life, as detailed in its December 2017 Feasibility Study.

 

Sonora Lithium Ltd ("SLL") is the operational holding company for the Sonora Lithium Project and owns 100% of the La Ventana concession. The La Ventana concession accounts for 88% of the mined ore feed in the Sonora Feasibility Study which covers the initial 19 years of the project mine life.  On completion of this option exercise, SLL is now owned 50% by Bacanora and 50% by Ganfeng Lithium Co., Ltd. SLL also owns 70% of the El Sauz and Fleur concessions. 

 

Bacanora also owns 44.3% of Zinnwald Lithium Plc (AIM: ZNWD), which in turn owns a 50% interest in the Zinnwald Lithium Project and the Falkenhain and Altenberg Licences in southern Saxony, Germany.

 

Cautionary Statement Regarding Forward-Looking Information

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur.  Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

 

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: commodity price volatility; general economic conditions in the UK, the United States, Mexico, Germany and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

 

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

 

Important notice

The contents of this announcement have been prepared by and are the sole responsibility of Bacanora.

 

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