Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
1st Quarter Financial Statements
Bacanora, the London and Canadian listed (LSE:BCN) lithium and borates company focussed on Mexico, has announced its unaudited condensed consolidated financial statements for the three month period ended 30 September 2015, together with the accompanying notes.
Highlights
· Commencement by leading international consultancy groups of a NI 43-101 standard Pre-Feasibility Study to design a plant potentially capable of delivering up to 50,000 tonnes per annum of lithium carbonate at Sonora Lithium Project in Mexico – scheduled for completion in the first calendar quarter of 2016
· Completion of 4,000 metre drilling programme at Fleur and El Sauz concessions at Sonora
· Long-term lithium hydroxide supply agreement signed
· Lithium market dynamic remains highly positive – demand is expected to continue to grow rapidly thanks to lithium’s key role in highly innovative industries such as smartphones, electric vehicles and energy storage
Post quarter end highlights:
· Updated Mineral Resource Estimate detailing a 337 per cent. increase in the Indicated portion of the MRE to 5.0 million tonnes (“Mt) lithium carbonate equivalent (“LCE”) contained in 364 Mt of clay, at a Li grade of 2,600 ppm compared to previous Indicated resource of 1.14 Mt LCE contained in 95 Mt of clay, at a Li grade of 2,200 ppm
o Major positive implications for mine planning and life of mine
o MRE prepared in accordance with National Instrument NI 43-101- Standards of Disclosure for Mineral Projects (“NI 43-101”)
· Completion of a private placement financing of approximately CAD$17.8 million (£8.8 million) via the placing of 11,476,944 new common shares at a price of CAD$1.56 (77.0 pence) per share to fund lithium engineering designs, pilot plant upgrade, bankable feasibility study, project work and metallurgical testwork during 2016
· Through the financing, the Company has secured its first major institutional shareholder as well as receiving support from pre-existing shareholders
Colin Orr-Ewing, Chairman of Bacanora, said, “Following the recent Mineral Resource update which included Indicated lithium resources of 5.0 Mt LCE contained in 364 Mt of clay, at a Li grade of 2,600 ppm, Sonora’s status as a large high grade deposit is clear. Together with our first rate consultants we are now focused on completing the PFS at Sonora in the first quarter of 2016. Thanks to the successful private placement post quarter end, which saw the addition of a first top tier institutional investor to our shareholder register, we are well placed to maintain the momentum behind the project. Subject to the results of the PFS, we are in a position to immediately commence the next phase of the development of Sonora, including a fully funded bankable feasibility study.
“As a result of the crucial role lithium plays in high growth innovative industries such as energy storage and electric vehicles, demand for lithium is set to increase in the years ahead while new supply struggles to keep pace. We are focused on ensuring Sonora plays a major part in meeting this anticipated demand growth, and in the process generate substantial value for our shareholders.”
