Bacanora Lithium PLC has sufficient funds to support the short-term funding requirements and the construction programme of its flagship Sonora lithium project in Mexico for the next 15 months, the company said alongside its interim results.
The lithium development and exploration company also said it has been in talks with RK Mine Finance regarding a US$150mln debt facility secured in July 2018. Due to extension fee considerations and the limited availability period for an extension, Bacanora and RK have agreed the remaining undrawn facility of US$125mln will no longer be available, it said. Bacanora added it will continue to engage with RK as well as seek alternative terms with other debt providers in light of the current favourable debt market conditions.
The company made a pretax profit of US$33.5mln in the first half, versus a pretax loss of US$4.7mln the year-earlier period, mainly due to a US$31.9mln one-off gain from the change of control of Sonora Lithium Ltd.
During the six months, initial site works started at the Sonora project, including initial environmental site activities in preparation for the construction of the mine and processing plant.
“I am pleased to report that preliminary topsoil and earthworks have now been completed alongside geotechnical work ahead of the main earthworks,” said chief executive Peter Secker. “The second half of the year will see early initial earthworks to prepare the site for construction activities and commencement of building the construction camp and ancillary facilities.”