Bacanora Minerals Ltd (LON:BCN) has confirmed the completion of its equity placing with Japanese trading firm Hanwa, which is received 12.33mln new shares.
The new shares, priced at 82.5p each, represent 10% of the company.
Bacanora raised £10.175mln in the funding, which comes alongside an offtake agreement with Hanwa for battery grade lithium carbonate at its Sonora lithium project in Mexico.
Sonora due to start in 2019
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.