Bacanora Lithium plc, the London traded lithium exploration and development company, has announced that it has raised £7 729 150 (approximately US$10 million) via the placing of 30 916 601 new ordinary shares in the company with one of its long standing cornerstone shareholders, M&G Plc, at a price of 25 pence per Placing Share, increasing their strategic holding in Bacanora to 19.9%.
The net proceeds of the placing will be used to support pre-construction works at the company’s Sonora Lithium Project in Mexico where a feasibility study has indicated highly favourable economics of a battery grade lithium carbonate operation, including US$1.25 billion NPV, 26% IRR and operating costs among the lowest in the industry at around US$4,000/t of lithium carbonate.
Following the placing, initial planned works at the project will involve the commencement of the bulk earthworks on site in H1 2020 and an upgrade to the primary access road. In addition, the funds raised will be used to place the initial orders for some of the longest lead-time items in the concentrator, pyrometallurgy and hydrometallurgy sections of the lithium plant. The placing of orders for long lead-time items at this early stage will enable the construction and installation of the lithium plant to commence once the technical review currently being undertaken by strategic partner Ganfeng Lithium Co., Ltd. has been completed.
As part of its Strategic Investment, Ganfeng recently completed a 29.99% equity investment in Bacanora and a 22.5% investment at the Sonora project level. Following the Placing, Ganfeng retains pre-emption rights to maintain its existing interest in Bacanora at 29.99%.
Read the article online at: https://www.globalminingreview.com/finance-business/28112019/bacanora-lithium-plc-issue-of-equity-to-cornerstone-shareholder/