Bacanora Lithium PLC (LON:BCN) has updated investors on site activities at its Sonora lithium project in Mexico.
In an operational update, the AIM-listed firm said it has rescued, removed and stored surface vegetation and topsoil in the area required for the construction of the lithium processing plant. This surface vegetation and topsoil is being stockpiled on the lease to be incorporated into the future project rehabilitation schedule.
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The company also said it has prepared tender packages for the plant's site bulk earthworks, construction accommodation and access road and will commence discussions with bidders during the second quarter of 2021 to enable construction works to begin on-site in the third quarter. Bacanora said it will provide an update to the market once decisions have been finalised, adding that it has also started the recruitment process for the remaining key management team personnel required to deliver the project.
Meanwhile, Bacanora said it has purchased the Las Perdices land package, located directly south of the existing areas previously purchased in 2019, saying that these additional 9,000 hectares will provide the firm with greater access to flatter land, ensuring reduced earthwork costs alongside vital emergency access.
The group said borefield test wells have also been finalised and that extraction well design is underway with work to begin at the site in the third quarter of 2021 to support the project construction stages and subsequently, lithium processing operations.
Bacanora added that its construction team has also started upgrading the temporary construction access road to ensure access to the mine site for the heavy equipment to commence bulk site earthworks later this year.
The company also said its partner and major shareholder, Gafeng Lithium Co Ltd, is currently commencing the tendering process in China for the large engineering packages and is focusing on a delivery and construction schedule to begin commissioning of the lithium plant in the second half of 2023.
Additionally, Bacanora said following Gafeng’s decision to exercise its pre-emptive right to increase its holding in the company, announced on February 5, cash has now been received and application has been made to admit around 53.3mln new shares to trading on AIM on May 26.