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Bacanora Lithium Announces Strategic Investment Update

Mining News - Published on Wed, 16 Oct 2019

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Bacanora Lithium Plc announced an update on the Strategic Investment by leading global lithium company Ganfeng Lithium Co Ltd. As announced on 28 June 2019, the signed Investment Agreement and Offtake Agreement, which together make up the Strategic Investment, were submitted to the relevant authorities in China for approval. Completion of the last of the relevant approvals has now been obtained and Bacanora has now received the GBP 21,963,740 of funds from Ganfeng in exchange for a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% JV investment directly 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 which has reached its 17,500 tonnes per annum designed capacity and achieved its 2019 production targets. 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, although final capacity expansion will be based on changes in, and assessment of, future market demand for lithium products.

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.

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Posted By : Rabi Wangkhem on Wed, 16 Oct 2019
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