Bacanora Lithium PLC (LON:BCN) said it has successfully raised USS$65mln via an equity funding comprising a share placing and a retail offer.
Some 106.9mln new shares are being issued at a price of 45p each, a 19.6% discount to Tuesday’s mid-market closing price.
Chief executive Peter Secker, in a statement, noted that the funding was the final piece in the company's financing commitment to bring Stage 1 of Sonora into production.
“This successful fundraising will allow the company to achieve its ambition of becoming an international lithium production company,” Secker said.
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He added "this successful fundraising which will allow Bacanora to meet its capital commitments for the development of our flagship Sonora Lithium project in Mexico and commence our transition from exploration company to lithium producer by 2023."
“This is a major achievement for the company, and I thank all parties involved including our joint venture partner Ganfeng, which has shown further support for Bacanora by proposing to exercise its pre-emption right beyond this fundraising to maintain its position as our largest shareholder,” Secker said.
The share placing was arranged by Citigroup, Canaccord Genuity and WH Ireland which placed some 101.3mln of the new shares. Some 5.6mln new shares were sold via the PrimaryBid platform in the retail offer, to contribute US$3mln.
Chinese stakeholder Ganfeng Lithium, which owned a 25.7% shareholding prior to the funding, has stated its intention to potentially exercise its pre-emptive right to buy additional new Bacanora shares, up to a maximum of 29.99%. This remains subject to approval from certain Chinese authorities.
Secker commented: "Bacanora, as stated previously, represents one of London's few listed pure-play lithium development companies and we, along with Ganfeng, are working tirelessly to unlock the substantial value for shareholders.”