Bacanora Lithium PLC - Issue of Equity to Cornerstone Shareholder
Issue of Equity to Cornerstone Shareholder
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
As part of its
Bacanora Chairman Mark Hohnen said: "Today's Placing, following an inbound request from one of our long-standing institutional investors, M&G, represents in our view an endorsement of Sonora's potential to become a leading supplier of high-value lithium products to fast-growing industries such as electric vehicles and energy storage. It also further de-risks the required funding for the Project, that continues to be progressed by our brokers, Canaccord and Citi, and which we are aiming to complete in H1 2020. With our highly supportive strategic partner and leading global lithium company, Ganfeng, undertaking a technical review of the Project, we are working hard to ensure we hit the ground running as soon as this work has been completed. By allowing long lead-time items to be ordered and earthworks to commence, the funds raised will enable us to maintain the momentum behind our flagship project.
"Forecast lowest quartile operating costs, a 200 year plus resource base and high-grade, high value end product ideally position Sonora to play a major role in the ongoing battery technology revolution that promises to transform and reshape how businesses and industries operate. We are focused on capitalising on this opportunity for the benefit of all our shareholders and I look forward to providing further updates on our progress."
Issue of Equity & Total Voting Rights
Application has been made for the 30,916,601 new ordinary shares to be admitted to trading on AIM ("Admission"). Admission is expected to occur on or around 28 November 2019. These new ordinary shares will rank pari passu with the existing ordinary shares in issue. Following admission of the new ordinary shares, there will be 222,981,837 ordinary shares in issue. This number may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company. This placing was arranged by
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For further information please visit www.bacanoralithium.com or contact:
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Peter Secker, CEO
Janet Blas, CFO
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Sandy Jamieson / Liam Murray
+44 (0) 20 7213 0880
WH Ireland, Placing Agent
James Joyce / James Sinclair-Ford
Harry Ansell / Daniel Bristowe
+44 (0) 20 7220 1666
Citigroup Global Markets,
Tom Reid / Patrick Evans / Matthew Kenney
+44 (0) 20 7986 4000
James Asensio / Edward Montgomery
+44 (0) 20 7523 8000
Financial PR Adviser
Frank Buhagiar / Megan Dennison
+44 (0) 20 7236 1177
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
ABOUT BACANORA LITHIUM:
Bacanora owns ten mining concession areas covering approximately 100 thousand hectares in the northeast of Sonora State in Mexico. Seven of these ten mining concessions (the "
2. LCE = lithium carbonate (Li2CO3) equivalent; determined by multiplying Li value in percent by 5.323 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.
The contents of this announcement have been prepared by and are the sole responsibility of Bacanora.
This information is provided by RNS, the news service of the
Quick facts: Bacanora Lithium Ltd
Market Cap: £44.6 m
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