TIDMBCN
RNS Number : 1547G
Bacanora Minerals Ltd
28 February 2018
Bacanora Minerals LTD / Index: AIM; TSX-V / Epic: BCN / Sector:
Natural Resources
28 February 2018
Bacanora Minerals Ltd ("Bacanora" or the "Company")
Update re Investor Financing
Bacanora Minerals Ltd., the London and Canadian listed lithium
exploration and development company, provides an update regarding
its proposed equity offering with NextView Capital ("NextView"). As
announced on 14 December 2017, NextView previously entered into a
binding placing letter (the "Placing Letter") with the Company
pursuant to which it agreed to acquire 32,976,635 common shares in
the Company (the "Placing") at a price of 94.53 pence
(approximately C$1.6223) per share for aggregate gross proceeds of
GBP31,172,813 (approximately C$53,498,000). The initial target date
for completion of the Placing was the end of January 2018. The
Company has fulfilled all of its obligations in respect of the
Placing, however NextView has failed to forward the Placing
proceeds to the Company, leaving it in default under the terms of
the Placing Letter.
In spite of the Company's best efforts to ensure compliance,
NextView has failed to complete the Placing as contemplated under
the binding Placing Letter. In addition, discussions have not
resulted in any alternative proposals that would, in the opinion of
the board of Bacanora, be in the best interests of Bacanora and its
shareholders. Accordingly, the Company is currently taking advice
and has reserved its rights in respect of this default.
Bacanora continues to focus on building an international lithium
company and, as part of this strategy, developing the Sonora
Lithium Project in Mexico ('Sonora') into a leading supplier of
high value lithium products to fast-growing industries such as
electric vehicles and energy storage. Management is evaluating
different funding options with a view to entering the construction
phase for Sonora within H1 2018. Sonora was assigned a Net Present
Value of US$1.25 billion and an Internal Rate of Return of 26% in a
recently completed Feasibility Study which also confirmed the
project occupies a position on the industry cost curve similar to
the low-cost brine producers in South America (see announcement of
13 December 2017).
**ENDS**
For further information please visit www.bacanoraminerals.com or
contact:
Bacanora Minerals Peter Secker, CEO info@bacanoraminerals.com
Ltd.
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Cairn Financial
Advisers LLP, Sandy Jamieson/Liam +44 (0) 20 7213
Nomad Murray 0880
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Canaccord Genuity, Martin Davison, +44 (0) 20 7523
Broker James Asensio 8000
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St Brides Partners,
Financial PR Frank Buhagiar / +44 (0) 20 7236
Adviser Megan Dennison 1177
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This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
ABOUT BACANORA:
Bacanora is a Canadian and London listed lithium exploration and
development company (TSX-V: BCN and AIM: BCN). The Company is
exploring for, and developing a pipeline of international lithium
projects, with a primary focus on the Sonora Lithium Project. The
Company's operations are based in Hermosillo in northern Mexico.
The Company is led by a team with lithium expertise and proven mine
development, construction and operations experience.
The Sonora Lithium Project1, which consists of ten mining
concession areas covering approximately 100 thousand hectares in
the northeast of Sonora State. The Company, through drilling and
exploration work to date, has established a Measured plus Indicated
Mineral Resource estimate of over 5 Mt (comprising 1.9Mt of
Measured Resources and 3.1Mt of Indicated Resources) of LCE2 and an
additional Inferred Mineral Resource of 3.7 Mt of LCE. The
Company's Feasibility Study (which was announced 12 December 2017)
has established Proven Mineral Reserves (in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects) of 1.67 MT and Probable Mineral Reserves of 2.85 Mt LCE
and confirmed the economics associated with becoming a 35,000 tpa
lithium carbonate and 30,000 tpa SOP producer in Mexico. In
addition to the Sonora Lithium Project, the Company also has a 50%
interest in the Zinnwald Lithium Project and the Falkenhain Licence
in southern Saxony, Germany. Each of the Zinnwald Lithium Project
and the Falkenhain Licence are located in a granite hosted Sn/W/Li
belt that has been mined historically for tin, tungsten and lithium
at different times over the past 300 years. The strategic location
of the Zinnwald Lithium Project and the Falkenhain Licence provides
close geographical proximity to the German automotive and
downstream lithium chemical industries.
1 The Sonora Lithium Project is comprised of the following
lithium properties: La Ventana lithium concession, which is 100
percent owned by Bacanora and El Sauz and Fleur concessions, which
are held by Mexilit S.A. de C.V. ('Mexilit') which is owned 70
percent by Bacanora and 30 percent by Cadence Minerals Plc.
2 LCE = lithium carbonate (Li2CO3) equivalent; determined by
multiplying Li value in percent by 5.324 to get an equivalent
Li2CO3 value in per cent. Use of LCE is to provide data comparable
with industry reports and assumes complete conversion of lithium in
clays with no recovery or process losses.
FORWARD LOOKING STATEMENTS:
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. In particular, forward-looking information
in this press release includes, but is not limited to the holding
of an annual and special meeting, the delivery of materials to
shareholders in respect of such meeting, the completion of the
Transaction and the delisting of the Company's common shares from
the TSX Venture Exchange. 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 Canada,
the United States, Mexico 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. Readers are cautioned that this list of
risk factors should not be construed as exhaustive.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IOEPGUPWPUPRGBM
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February 28, 2018 02:01 ET (07:01 GMT)
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