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Sector: Mining
Market Cap: 138.10M
Bacanora Minerals Ltd

Bacanora Minerals Ltd

Bacanora Minerals is an AIM and TSX listed company focused on becoming a large scale producer of battery grade lithium carbonate.

With the global lithium-ion battery market expected to soar from $17.5 billion to $70 billion by 2020, the demand for lithium is set to increase dramatically in the short to medium term. This is predominantly being driven by the automotive industry although...

Bacanora Minerals Ltd

www.bacanoraminerals.com

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Big picture - Why invest in Bacanora Minerals Ltd


Bacanora Minerals Ltd Snapshot

Bacanora has a vision to become a large scale producer of high grade lithium through the development of the world-class Sonora Lithium Project in Mexico.

At Sonora, the Company is focused on completing a Bankable Feasibility Study for a 35,000 tpa Li2CO3 operation by Q1 2017, after which detailed design and site preparation work will commence in Q2 2017. The PFS completed at Sonora has also highlighted strong potential upside through the production of up to 50,000 tpa of potassium sulphate for sale to the domestic Mexican fertiliser industry.

IMG 5494

The Magdalena Borates Project is envisaged to potentially provide up to 50,000 tpa of boric acid production for domestic use. Boric acid pilot plant and study work is ongoing in tandem with the Company’s lithium development activities.

 

 

 

SONORA LITHIUM

With an Indicated Mineral Resource estimate of 4.5 million tonnes (‘Mt’) of lithium carbonate equivalent (‘LCE’) and an Inferred Mineral Resource of 2.7 Mt of lithium carbonate equivalent (‘LCE’), Sonora is regarded as one of the world’s larger known clay lithium deposits.

Following the results of the PFS, management is focused on advancing the development of Sonora as it looks to bring the project into production to satisfy expected strong growth in demand for lithium from fast growing sectors, such as electric vehicles and energy storage.

Sonora holds one of the world’s largest lithium resources and benefits from being both high grade and scalable. The project, which is located in an existing mining district and has excellent access to infrastructure, consists of 10 contiguous concessions covering 104,064 Ha and is located 190km NE of Hermosillo in northern Mexico. The Company has a 100% interest in the La Ventana concession and a 70% interest in Mexilit and Megalit.

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SONORA PILOT PLANT

Over the past 3 years, Bacanora has built a lithium carbonate pilot plant in Hermosillo, to upgrade and process ores from the nearby Sonora Lithium Project. Over the past 24 months the plant has been upgraded to include the full metallurgical flow sheet of pre-concentration, flotation, roasting and lithium carbonate precipitation.

In early 2016 the facility was upgraded to allow it to runs continuously on a 24/7 basis and the plant is currently targeting the production of representative samples of battery grade (99.5%) lithium carbonate, which the Company will use in ongoing discussions with potential off-take customers for its future lithium production.

The Company has invested over CAD$15 million on exploration and development of the pilot plant. Over the next 12 months the pilot plant will continue to operate for the following strategies:

Produce off-take samples to send out to potential off-take partners in AsiaOptimise the metallurgical flow sheet developed for the PFS to ensure more detailed mass balances for the DFSContinue with operator training prior to the construction of the larger scale operating plants.

MAGDALENA BORATE

The Magdalena Borates Project, which is owned 100% by Bacanora and covers 16,503 Ha in Sonora State in northern Mexico, represents an excellent opportunity to develop boric acid production to be sold in the domestic Mexican market.

Previous studies have estimated that a low CAPEX cost project could enable the Company to commence production relatively quickly. The project is subject to a 3% royalty to a Rio Tinto subsidiary and a 3% royalty to Colin Orr-Ewing.

The project consists of seven concessions, and to date, three main borate zones have been located on the Magdalena project area: Cajon; Bellota and Pozo Nuevo. El Cajon is the most advanced project with a NI 43-101 indicated resource of 11.06m tonnes at 10.6% grade for 1,170,000 tonnes of boron trioxide (B2O3).

Test pit and boric acid pilot plant testwork is ongoing and to date 930 tonnes from the borates have been processed with samples of 99% boric acid sent to potential off take customers. With these results in hand, ongoing metallurgical testwork based on higher value boric acid will commence in late 2016/2017, focused on developing an operation of up to 50,000tpa of boric acid production for domestic use. Mexico has a market for borates and the project benefits from close proximity to established infrastructure, grid supply, road, water and rail.

Mark Honen - Executive Director / Chairman
Mr. Hohnen has experience in the Japanese, Chinese and Korean markets, all of which play a significant role in the production of lithium ion batteries and the development of electric vehicle technology.  Mr. Hohnen has been involved in the mineral resource sector since the late 1970s.  He has had extensive international business experience in a wide range of industries including mining and exploration, property, investment, software and agriculture.  He has held a number of directorships in both public and private companies and was founding Chairman of Cape Mentelle and Cloudy Bay wines, as well as the oil and coal company Anglo Pacific Resources Plc.  Mr. Hohnen was also a director of Kalahari Minerals and Extract Resources, having successfully negotiated the sale of both companies to Taurus (CGN).  He remains on the board of Swakop Uranium, which is developing the world's second largest uranium mine and the largest mine development in southern Africa.  He is also a director of ASX listed, Wildhorse Energy Limited.

Peter Secker - Chief Executive Officer

Mr. Secker is a mining engineer with over 30 years experience in the resources industry. During his career he has built and operated a number of mines and metallurgical processing facilities in Africa, Australia, China and Canada. His operating and project experience spans a number of commodities, including titanium, copper, iron ore, gold and lithium. For the past 10 years Peter has been Chief Executive of a number of publicly listed companies, most recently as CEO of Canada Lithium Corporation whilst successfully developing the Quebec Lithium project.

Martin Fernando Vidal Torres - President and Director 
Martin Fernando Vidal Torres has served as the Vice President, Exploration – Mexico for Bacanora since January 2011. He currently serves as General Manager of Minerales Industriales Tubutama S.A. de C.V. and Minera Sonora Borax S.A. de C.V., two fully-owned Mexican subsidiaries of Bacanora and the operating vehicles for the development of the Company's projects owned in Mexico. Mr. Vidal started his career as geologist with the US Borax exploration team and has years of experience working in Northern Mexico, particularly in the project areas that Bacanora are now developing. His experience includes almost 20 years of working with the multinational company Rio Tinto in the exploration of industrial minerals in several countries in America, occupying different technical and managerial positions. Mr. Vidal has a BSc. in Geology from the University of Sonora (1987) and studies in Non-Ferrous extractive Metallurgy in the same University.

Derek Batorowski - Chief Financial Officer and Director
Over twenty years of experience in the oil and gas and mineral exploration industries.  Experienced in accounting, finance, corporate planning, treasury, and taxation with both public and private large and small oil and gas producers and small cap national and international mineral exploration companies.

Paul Bolger - Corporate Secretary
Paul Bolger is a partner with Tingle Merrett LLP, a Calgary-based corporate and securities law boutique firm, with a practice focused on corporate securities, corporate finance and commercial transactions involving emerging, growth and mid-capitalization companies. Mr. Bolger has extensive experience acting for public and private companies in a range of matters including equity and debt financings, public and private corporate acquisitions and business combinations, continuous disclosure obligations, share and asset acquisitions and dispositions, corporate restructurings, amalgamations, reorganizations and other business transactions.

James Leahy - Non-Executive Director
Having begun his career at the LME, Mr. Leahy spent 29 years in the mining industry as a specialist corporate broker, including mining finance, origination and equity sales. Mr. Leahy has worked on a wide range of projects, worldwide, ranging from industrial minerals, precious metals, copper, diamonds, coal, uranium and iron ore. Having worked at James Capel, Credit Lyonnais, Nedbank, Canaccord and Mirabaud, he has substantial experience with international institutional fund managers, hedge funds and sector specialists. Over the years Mr. Leahy has been involved in many IPO’s and a large number of primary and secondary placings, developing junior companies through to production and beyond. He is currently a director of Mineral Commodities and Forte Energy.

Kiran Morzaria - Non-Executive Director 
Mr. Morzaria holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School. He has fifteen years of experience in the mineral resource industry. Mr. Morzaria spent his first four years in exploration, mining and civil engineering. Mr. Morzaria has been active in IPOs, corporate acquisitions, joint ventures, qualified persons reports, due diligence and debt/equity raisings. He has served as a director of a number of public companies, including Lonrho plc and Vatukoula Gold Mines plc.

Ray Hodgkinson - Non Executive Director
Ray Hodgkinson is a retired Professional Engineer in Alberta, Canada who has spent the last 40 years in the oilfields and gasfields of Western Canada, northern Russia and at a shipyard in Japan.  He is a founding Director of Canadian mining companies Westcore Energy Ltd and Bacanora Minerals Ltd. and energy company Troy Energy Corp.

James Strauss - Non-Executive Director
Jamie Strauss has had 30 years experience within the stockbroking and mining finance sector. Currently he is a Director of mining finance boutique, Strauss Partners Ltd - based in London, UK.  Previously, a Managing Director at BMO Capital Markets, 2007 - 2009.  He has raised in excess of $1bn for projects spanning the globe in both energy and mineral world on behalf of leading institutions in UK, Europe, North America and Australia.  He is particularly well known for his long term specialisation of the Diamond Mining sector as well as supporting development assets through to production. Jamie is a Director of Altius Minerals and Gold Standard Ventures.

Paul Bolger - Corporate Secretary
Mr. Bolger serves as the Corporate Secretary of the Corporation. Paul Bolger is a partner with Tingle Merrett LLP, a Calgary-based corporate and securities law boutique firm, with a practice focused on corporate securities, corporate finance and commercial transactions involving emerging, growth and mid-capitalization companies. Mr. Bolger has extensive experience acting for public and private companies in a range of matters including equity and debt financings, public and private corporate acquisitions and business combinations, continuous disclosure obligations, share and asset acquisitions and dispositions, corporate restructurings, amalgamations, reorganizations and other business transactions.

Major Shareholders:

 

(1) Graham Edwards is the ultimate beneficial owner of Igneous. Mr. Edwards is also one of the potential beneficiaries of a trust that owns D&A Income Limited, which owns 5,303,030 Common Shares representing 4.79 per cent. of the issued share capital of the Company.

This section was last updated on 23 November 2016.

Head Office Address (Calgary)
2204 6th Ave N.W.
Calgary, AB
T2N 0W9
Phone: 403-237-6122
Fax: 403-237-6144


London Office
4th Floor,
97 Jermyn Street,
London, SW1Y 6JE
United Kingdom

Mexico Office
Calle Uno 312, Esq. Av. Doce
Col. Bugambilias C.P. 83140
Hermosillo, Sonora, Mexico

Broker:

Numis Securities Ltd
10 Paternoster Square
London
EC4M 7LT

Nominated Adviser:

Cairn Financial Advisers LLP
Cheyne House
Crown Court
62–63 Cheapside
London
EC2V 6AX

Gowling WLG (UK) LLP
4 More London
Riverside
London
SE1 2AU

Macquarie Capital (Europe) Limited
Ropemaker Place
28 Ropemaker Street
London
EC2Y 9HD

Financial Public Relations:
St Brides Partners
3 St Michael's Alley
London EC3V 9DS
United Kingdom

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