Bacanora Minerals Ltd (LON:BCN) intends to move quickly to construct a lithium mine at Sonora in Mexico following publication of a feasibility study later this year.
The junior recently received environmental approval for a 35,000 tonne per year (tpa) plant, with the ramp-up in two stages.
READ: Bacanora Minerals further de-risks Sonora lithium project with environmental approval
Bacanora repeated Wednesday it expects the feasibility study to be completed on schedule in the final quarter of this year to confirm a favourable cost position for Sonora among its peer group.
Japanese trading house Hanwa has taken a 9.35% stake, which can rise to 19.9% and an offtake agreement for all of the first phase production of 17,500tpa.
“With a flagship project fast approaching the construction phase, a first class partner with long-established relationships in Asia, and end markets that benefit from structural growth drivers in the form of the rapid roll-out of electric vehicles and energy storage, Bacanora is in the right market with the right asset at the right time,” said chairman Mark Hohnen.
READ: Bacanora positions itself in two lithium hot spots
Losses in the year to June were 8.4mln (C$7.9mln) as expenditure increased on Sonora and also the group’s other lithium deposit, Zinnwald in Germany.
Cash balances were approximately US$25mln, which is sufficient to fund Sonora through to the initial project development and the start of the construction stages.
Sonora s one of the world's larger deposits with an Indicated Mineral Resource of 4.5mln tonnes and 2.7mln tonnes Inferred of lithium resources.
Shares were down 0.5% to 81.06p on Wednesday afternoon.
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