logo-loader
viewBacanora Lithium Ltd

Bacanora signs off-take deal with Japan-based global trading company

Bacanora signs a milestone agreement providing financial backing for the further development of Sonora

Lithium-manufacture---Bacanora.jpg
Lithium plant at Sonora

Bacanora Minerals Ltd (CVE: BCN)(LON:BCN) has signed an off-take deal with Hanwa Co., a leading Japan-based global trading company and one of the larger traders of battery chemicals in the Asian region, with reported net sales of more than ¥1,500 billion in 2016. 

Under the terms of the agreement, Hanwa will take a 10% equity investment in Bacanora. This will raise approximately £10.2mln via the placement of just over 12mln shares at 82.5p.

Hanwa will also sign an off-take agreement for up to 100% of the battery grade lithium carbonate (Li2CO3) produced at Bacanora’s Sonora lithium project in Mexico.

WATCH: Off-take deal a "good transaction", says Bacanora boss ...

WATCH: Zak Mir on Bacanora ...

Bacanora is planning to produce 17,500 tonnes of Li2CO3 per annum as stage one of its mining operation at Sonora, commencing in 2019. 

After two years of producing at this level, the company then plans to lift production to 35,000 tonnes per annum. 

Hanwa will pay market prices for between 70% and 100% of the lithium carbonate produced during stage one and has the option to increase the off-take tonnage by up to 100% at Stage 2 production.

"This partnership with one of Japan's leading battery chemical traders is transformational for Bacanora,” said chairman Mark Hohnen.

“It significantly reduces the overall risk profile of the project, validates our production process, and provides us with an excellent platform with which to fund the future development of Sonora.” 

CLICK HERE: For a daily round-up of all the Proactive news …

Quick facts: Bacanora Lithium Ltd

Price: 22.25 GBX

AIM:BCN
Market: AIM
Market Cap: £49.61 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

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...

In exchange for publishing services rendered by the Company on behalf of Bacanora Lithium Ltd named herein, including the promotion by the Company of Bacanora Lithium Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Bacanora Lithium advancing Sonora debt and equity financing

Peter Secker, chief executive of Bacanora Minerals Ltd (LON:BCN) caught up with Proactive's Andrew Scott to update on financing discussions for the Sonora lithium mine in Mexico. Secker says they're still on track to begin production in the first quarter of 2020 and is expecting...

on 13/4/18

2 min read