17:00 Fri 06 Apr 2018
Bacanora Lithium PLC - Sonora Project Update
("Bacanora Lithium" or the "Company")
Sonora Project Update
Front End Engineering Design (FEED) and EPC/EPCM Engineering
Design of both the roaster/kiln FEED and the crystalliser/evaporation/IX FEED has commenced following the delivery of bulk lithium samples from Sonora to selected vendors. These two equipment packages are expected to comprise approximately 75% of the total capital cost of the processing plant.
Bacanora is in detailed contract discussions with EPC/EPCM engineering groups for all other parts of the processing plant in order to finalise the project cost and to complete budget and timetables in conjunction with completion of the FEED engineering packages.
The current FEED schedule is to have designs, cost estimates and process guarantee scopes completed in Q2 2018 with orders for long lead items being placed at the end of the FEED process. The current timetable is based on commissioning and lithium carbonate production commencing in Q1 2020 and will be updated at the end of the FEED process.
Project Approvals: Water Licences
Water licence permits covering the
Energy
It is currently envisaged that LNG gas supplies will be initially utilised at Sonora during the early stages of commissioning whilst gas consumption is low. Once energy consumption reaches steady state, pipeline supply to the Project will be initiated. The Company is in detailed discussions with a number of potential Build, Own and Operate (BOO) energy partners for the gas pipeline development to the Project along with the finalisation of the proposed natural gas pipeline routes. Detailed quotes for the supply of LNG are also currently being evaluated.
NextView
As previously announced, the Company entered into a binding placing letter (the "Placing Letter") with
In spite of repeated efforts on the part of the Company requesting that NextView remedy its continuing default, NextView has continued to fail to complete the Placing as contemplated under the Placing Letter. Accordingly, the Company has terminated the Placing Letter and has reserved its rights to pursue any available legal remedies against NextView.
Financing
The Feasibility Study estimated the capital cost for the Stage 1 production of 17,500tpa of lithium carbonate at Sonora at
Bacanora CEO
**ENDS**
For further information, please contact:
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+44 (0) 20 7213 0880 |
Canaccord Genuity, Broker
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+44 (0) 20 7523 8000 |
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+44 (0) 20 7236 1177 |
ABOUT BACANORA LITHIUM:
Bacanora Lithium is a
1
2 LCE = lithium carbonate (Li2CO3) equivalent; determined by multiplying Li value in percent by 5.324 to get an equivalent Li2CO3 value in per cent. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to: roaster / kiln FEED and crystalliser/evaporation/IX FEED comprising approximately 75% of the total capital cost of the processing plant; commencement of lithium carbonate production in Q1 2020; use of LNG gas supplies during early stages of commissioning; finalising debt and equity financing strategies; commencement of construction phase at Sonora in H1 2018; 18 month build-out period and production of high value lithium products in Q1 2020. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: commodity price volatility; general economic conditions in
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
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