Bacanora Lithium PLC (LON:BCN) has received the second approval of the three required for the investment by Chinese firm Ganfeng.
The agreement will see Ganfeng acquire 29.99% of Bacanora for £14.4mln and 22.5% of Sonora for a further £7.6mln.
The first of the approvals, from China’s Ministry of Commerce, was received at the end of July and Bacanora says approval by NDRC (National Development and Reform Commission) has now been received by Ganfeng.
The final approval from SAFE (State Administration of Foreign Exchange) will be received following a Ganfeng board meeting in the coming weeks said the statement.
Wang Xiaoshen, Ganfeng Lithium’s deputy chairman, said: ”Our technical team is commencing its review to identify areas where Ganfeng can add value to the project delivery.
“Ganfeng is committed to supporting Bacanora in its financing and commencing development of the Sonora Project in the coming months."
Bacanora will use the money from the investment on the phase stage of the initial 17,500 tonnes per annum lithium carbonate operation at Sonora Project in Mexico.