Bacanora Lithium PLC - AGM Update
Highlights for the year 2019
2019 has been a critical year for Bacanora and is one that has resulted in a number of significant developments that have continued to add incremental shareholder value over the past 12 months. These developments include:
· Securing one of the world's biggest lithium producers, Ganfeng Lithium Co., Ltd. ('Ganfeng'), as a 29.9% cornerstone investor
· Securing Ganfeng as our joint-venture development partner with a 22.5% direct investment in Sonora
· Securing 100% of Stage 1 production at Sonora under two guaranteed offtake agreements with Ganfeng and Hanwa and 75% of Stage 2 production with Ganfeng
· Continued longstanding support from our earliest institutional investor M&G Plc ('M&G') who increased their investment in Bacanora to 19.9%
· Completion of a Feasibility Study for the
"Each of the key milestones achieved over the past 12 months demonstrated increased shareholder value and moves us ever closer to production, further distinguishing us from our peers. Indeed, in the 12 months since our last AGM, the Bacanora share price has increased by 25%, compared with our lithium peers who have seen share price declines of between 10% and 74%.
"In order to appreciate the value of our Company, it is important to understand what first attracted Ganfeng and M&G to Bacanora and our world class
"The considerable institutional and industry backing we continue to receive is testament to the robust economics of Sonora. Ganfeng is now the largest shareholder in the Company and is also a joint-venture partner in Sonora. Ganfeng has embarked on a technical review of the hydrometallurgical circuit of the processing plant, with a view to potentially sourcing key sections of the production equipment from Chinese suppliers and is expected to be completed in H1 2020. Both Bacanora and Ganfeng are also developing testwork programmes to evaluate the potential to produce other high value lithium products at Sonora in addition to battery-grade lithium carbonate.
"Our confidence extends to our Zinnwald project in
"With major institutions and industry players on our shareholder register and a strong retail investor following, we are well-placed to complete the finance package for Sonora in H1 2020. Before then, thanks to the progress made over the last twelve months, Bacanora has a cash rich balance sheet which enables us to invest in long lead items and commence bulk earthworks. Our focus remains to start production at Sonora at the earliest opportunity, as we look to realise the Project's potential and, in the process, generate value for all our shareholders."
For further information, please contact:
| || |
+44 (0) 20 7213 0880
Citigroup Global Markets, Broker
| || |
+44 (0) 20 7986 4000
Canaccord Genuity, Broker
+44 (0) 20 7523 8000
| || || |
+44 (0) 20 7236 1177
ABOUT BACANORA LITHIUM:
Bacanora owns ten mining concession areas covering approximately 100 thousand hectares in the northeast of Sonora State in
In addition to 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.
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: the updated estimation of resources, followed by mine design and mine planning activities and the completion of feasibility studies. 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
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.
This information is provided by RNS, the news service of the
Quick facts: Bacanora Lithium Ltd
Market Cap: £46.71 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE