TIDMBCN
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 GBP21,883,485 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 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
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 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 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
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the sole responsibility of Bacanora.
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END
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