logo-loader
viewBacanora Lithium Ltd

Bacanora Lithium says construction nearing at Sonora

The lithium group said its operating loss fell by a quarter to US$8mln in the year ended 30 June 2019, with its cash balance also growing 12%

Bacanora Lithium Ltd -

Bacanora Lithium Group PLC (LON:BCN) said that it now has a “clear line of sight” towards construction at the Sonora lithium project in Mexico.

Pete Secker, chief executive, said it was confident it will soon be in position to finalise the financing package for Sonora and move on to the 24-month construction phase. 

Chinese lithium giant Ganfeng recently concluded an agreement to acquire 29.99% of Bacanora and 22.5% directly in Sonora.

That effectively halved the company’s funding requirement for the project, said Secker, and once it secures the rest of the funding building will start.

Sonora’s operating costs “among the lowest in the industry” at US$4,000 per tonne, compared to higher-cost producers such as Zangge, Qinghai, and Tianqi in Australia.

This will enable it to weather the “degree of uncertainty in the nascent lithium market”, which has seen spot prices almost halve in the past eighteen months.

Secker added it is also in discussions to secure €159mln in funding to develop its 50% owned Zinnwald project in Germany.

Operating losses fell by a quarter to US$8mln in the year to June, with its cash balance at US$14.8mln.

The Ganfeng investment, advancement at Sonora, and Zinnwald’s feasibility study were “stand-out milestones” this year, said Secker.

The company holds “two high-value lithium projects with a combined NPV of over US$1.7 bn at the funding stage”, he said.

Shares were up half of a percentage point to 34.2p in early trading.
 

Quick facts: Bacanora Lithium Ltd

Price: 31.7 GBX

AIM:BCN
Market: AIM
Market Cap: £70.69 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

RNS

Holding(s) in Company

1 week, 2 days ago

Holding(s) in Company

1 week, 2 days ago

Price Monitoring Extension

3 weeks, 3 days ago

Notice of AGM

3 weeks, 3 days ago

Sonora Lithium Project Update

1 month, 1 day ago

Holding(s) in Company

on 23/10/19

2 min read