Bacanora Minerals Ltd. (LON:BCN) has said it intends to re-commence the process of changing the domicile of jurisdiction to the UK from Canada which it thinks will benefit its plans to raise a significant amount of new debt and equity financing to fund its growth.
The London and Canadian listed lithium company sought shareholder approval to effect the re-domicile from Canada in September 2016, however, the requisite approval was not obtained in order to proceed.
It added that, since listing on AIM in 2014, the company has been successful in raising funding from the UK Capital Markets and has already added three Global Institutional investors and a major off-take partner to its shareholder base.
The company said it now intends to raise a significant amount of new debt and equity financing to fund its growth as an international lithium company with new projects in Mexico and Germany and believes that a UK-domiciled company with its primary listing on AIM is the best way to achieve this.
The company intends to move its head office and its senior management to the UK, and as a result the board anticipates that the re-domicile will result in significant cost and administrative savings for the company and its subsidiaries.
It is intended that the re-domicile will be effected by means of a plan of arrangement, whereby all existing common shares in Bacanora will be exchanged, through a wholly-owned subsidiary of Bacanora Lithium PLC for ordinary shares in Bacanora UK, a company that has been established in the UK to become the new holding company for the group.
The group said the share capital of Bacanora UK will be substantially identical to the existing share capital of Bacanora and the rights attaching to the new ordinary shares in Bacanora UK will be substantially the same as for the current Bacanora common shares. In all other respects, the Group will remain unchanged as a result of the transaction.
The transaction will be subject to customary shareholder, regulatory and Canadian court approval.
In afternoon trading, Bacanora shares were down 5%, or 5.5p at 102.5p.
In a separate statement today, Cadence Minerals PLC (LON:KNDC) noted that it currently holds approximately 9% of Bacanora's equity and once the recent financing move is complete, Cadence will hold approximately 7% of Bacanora's equity.
Cadence also holds 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the Sonora Lithium Project in Northern Mexico.
-- Adds share price, Cadence Minerals statement ...