Bacanora Lithium shifts attention to construction as financing completes
Last updated: 11:54 17 Dec 2021 GMT, First published: 11:37 14 Apr 2021 BST
Snapshot
- Bacanora to hand out Zinnwald shares after takeover goes unconditional
- Bacanora Lithium 'fully financed and ready to develop the Sonora mine project' following fundraise
About the company
Bacanora Lithium PLC is focused on building a 35,000 tonnes per annum battery-grade lithium operation in Sonora, Mexico in partnership with its cornerstone investor Ganfeng Lithium.
The Sonora Lithium Project has 8.8 Mt of LCE (lithium carbonate equivalent) resources and open-pit mining potential with ~250-year resource life.
Bacanora has completed a feasibility study for Sonora which has highlighted an NPV of US$1.25B and 26% IRR.
How it is doing
Bacanora Lithium said the takeover offer from Chinese partner Ganfeng International had gone unconditional following regulatory clearance in Mexico.
As a consequence, the distribution of its stake in Zinnwald Lithium will now go ahead.
For each Bacanora, shareholders will now receive 0.23589 Zinnwald shares with 20 December the ex-date and transfer expected to be completed by 22 December.
Ganfeng, the world's largest lithium producer, approached Bacanora in May with a 67.5p per share cash offer that was sweetened with the Zinnwald stake.
Think BIG, an investors group representing more than 500 shareholders in Bacanora Lithium Plc (AIM:BCN, OTC:BCLMF), published an open letter criticising Ganfeng International’s takeover offer and urging Bacanora to seek a better offer.
Ganfeng, the world's largest lithium producer, approached Bacanora back in May with a 67.5p per share cash offer. The Chinese group already had a 29% stake in Bacanora and a 50% stake in Sonora, the AIM-listed miner’s lithium project in Mexico, when it made the offer.
Bacanora Lithium PLC has responded to proposals of new legislation from the Mexican government in regard to lithium concessions.
On 1 October 2021, the Mexican government submitted to Congress a proposal for constitutional changes with the primary objective of strengthening the state electricity company.
What management says
Bacanora Lithium's (LON:BCN) Peter Secker catches up with Proactive London's Katie Pilbeam about their latest US$65m financing with Ganfeng Lithium exercising its pre-emptive rights.
The chinese giant has increased its position to 28.8% meaning that it remains BCN’s largest shareholder.
Secker says the company is now 'fully financed and ready to develop the Sonora mine project in Mexico.