Approval from the relevant Chinese authorities for Gangfeng Lithium Co Ltd to complete its strategic investment in Bacanora Lithium PLC (LON:BCN) has now been received.
Bacanora is now in receipt of £21.9mln of funds from Ganfeng, and Ganfeng in turn now holds a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% direct stake in the Sonora lithium project.
It is expected that the 57,600,364 shares in Bacanora will be admitted to trading on or around 18 October 2019.
Ganfeng has recently announced its intention to proactively advance the development of Bacanora's Sonora lithium clay project during the second half of 2019. This is in addition to work being undertaken by Ganfeng in China, Australia and Argentina as part of a series of planned manufacturing capacity expansions to capitalise on the growing demand for lithium and solidify its leading position in the lithium products industry.
In China, work continues to increase the capacity of Ganfeng's battery-grade lithium carbonate production line in Ningdu County, Jiangxi Province.
In addition, Ganfeng intends to build a battery-grade lithium hydroxide production line with a 50,000 tonnes per annum capacity at Basic Lithium Plant in Xinyu with commissioning targeted in 2020. These initiatives will support Ganfeng's target of 200,000 tonnes per annum lithium carbonate equivalent production capacity by 2025.
Meanwhile, the Bacanora project team in Mexico continues to progress the final design work for the mine, concentrator and kiln sections of the processing plant. The Ganfeng technical team has initiated work on the hydrometallurgical circuit and is reviewing sourcing key sections of the lithium production equipment from current equipment suppliers in China.
Wang Xiaoshen, the vice president of Ganfeng and the vice-chairman of its board of directors has been appointed a director of Bacanora Lithium.
Wang is primarily responsible for the marketing, investment and overseas business of Ganfeng and has over 25 years of experience in sales and marketing of lithium products. He is a director of GFL International, Mariana Lithium, RIM and Lithium Americas.