TIDMBCN
RNS Number : 5376O
Bacanora Lithium PLC
10 February 2021
This Announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon
the publication of this Announcement, this inside information is
now considered to be in the public domain.
10 February 2021
Bacanora Lithium plc
("Bacanora" or the "Company")
Commencement of early site works at Sonora Lithium Project
Bacanora Lithium plc (AIM: BCN), a lithium development company,
is pleased to announce that it has commenced initial site
activities at the Sonora Lithium Project (the "Project"), located
in Mexico. This milestone follows the Company's successful US$65
million fundraise last week, which, in combination with existing
cash and the undrawn portions of its debt financing facility, will
finance Bacanora's 50% share of the capital cost required for Stage
1 of the Project.
Bacanora is building the Project together with its partner,
Ganfeng Lithium Co., Ltd. ("Ganfeng"), the world's largest lithium
metals producer. Both parties are working towards a development
timetable for Sonora, with scheduled production of battery grade
lithium products in 2023.
Initial site works
The Company has engaged a local specialist ecological services
company based in Sonora to begin initial site works. These
activities will involve the rescue and removal of surface
vegetation and topsoil in the area required for the construction of
the lithium processing plant. These activities are being performed
in compliance with its obligations pursuant to its environmental
approvals. The excavated material will be stockpiled at a location
adjacent to the plant site and will be stored in an approved manner
in order that it can be incorporated into the future project
rehabilitation schedule. A team of 15 personnel has been deployed
to site, including two ecologists, a biologist, and a forestry
engineer. The majority of these personnel reside in the local
area.
In addition, the Bacanora construction team has commenced the
preparatory work required to upgrade the main access road to the
site in preparation for providing access for heavy equipment to
commence the bulk site earthworks later in the year. The tender
process for this work has commenced and is focusing on using local
construction and engineering groups from the surrounding Sonora
region. Work is also currently underway to commence the tender
process for the site accommodation and ancillary facilities,
scheduled to be commissioned by the end of Q2, 2021.
Engineering works
Transmission of engineering drawings and documentation from
Ganfeng and its equipment suppliers in China has commenced and the
final engineering packages will be delivered to Bacanora in Q2,
2021. In addition, Bacanora is working with its principal equipment
suppliers to finalise a schedule for the delivery of the larger
items of processing equipment for delivery in 2022. As part of this
schedule, orders for the larger items of process equipment that
have delivery schedules of over 12 months will be placed during Q3,
2021 for delivery to site in late 2022.
Impact of Covid-19 on Bacanora
As documented previously, Bacanora has not been immune to
impacts of the COVID-19 pandemic and its timetable for the Project
was slightly impacted during 2020 . The Company's priority remains
the health and well-being of its staff, partners and its local
communities. Bacanora continues to take all appropriate measures to
protect them in accordance with the relevant governmental and
regional requirements. Sonora is now moving out of the second wave
of infections and the Company will provide updates on the situation
as any changes occur.
Community Engagement
Bacanora continues to work with the Sonora Government and the
local municipalities in the region of the mine site. With the
critical step of project funding now completed, the Company will
continue to develop its community engagement strategy on education,
training and development of local workforce as the Project
transitions through the development stage into operations in
2023.
The Company's latest presentation is also available for download
here:
https://www.bacanoralithium.com/investor-relations/restricted-company-presentations/
Peter Secker, CEO of Bacanora said:
"I am delighted to announce Bacanora has commenced initial site
works at the Sonora Lithium Project, located in Mexico. This
milestone cements Bacanora's transition into a mine-development
company as it looks to fulfil its ambition of becoming a lithium
producer in 2023. I look forward to updating the market with
further positive progress reports as we build the Sonora Lithium
Project in conjunction with our strategic investor and project
partner, Ganfeng."
For further information please visit www.bacanoralithium.com or
contact:
Bacanora Lithium plc info@bacanoralithium.com
Peter Secker, CEO
Janet Blas, CFO
Cairn Financial Advisers LLP,
Nomad
Sandy Jamieson / Liam Murray +44 (0) 20 7213 0880
Citigroup Global Markets,
Joint Broker
Patrick Evans / Matthew Kenney
/
Andrew Miller-Jones +44 (0) 20 7986 4000
Canaccord Genuity, Joint Broker
James Asensio / Sam Lucas
/ Thomas Diehl +44 (0) 20 7523 8000
Tavistock, Financial PR Adviser Bacanora@tavistock.co.uk
Jos Simson / Emily Moss / +44 (0) 20 7920 3150
Oliver Lamb +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 (Li(2)
CO(3) ) 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 will be 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.
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