Bacanora Minerals Ltd Issue of Equity (1640G)
25 May 2017 - 4:00PM
UK Regulatory
TIDMBCN
RNS Number : 1640G
Bacanora Minerals Ltd
25 May 2017
Bacanora Minerals Ltd
('Bacanora' or the 'Company')
Issue of Equity
Bacanora Minerals Ltd (AIM: BCN and TSX-V: BCN), the London and
Canadian listed lithium exploration and development company, has
entered into a Subscription Agreement ('the Subscription') with
Capital Research and Management Company ('Capital'). Under the
terms of the Subscription, Capital has agreed to subscribe for
8,573,925 new Common Shares in Bacanora (the 'Subscription Shares')
at a price of 86 pence per ordinary share, raising gross proceeds
of approximately GBP7.4 million (approximately US$9.6 million /
approximately CAD $13 million) for the Company.
The proceeds of the Subscription will be used to advance both
the Company's Sonora Lithium Project ('Sonora') in Mexico, which is
one of the larger lithium resources in the world, and its Zinnwald
Lithium Project ('Zinnwald') in Germany. Together, these assets are
expected to enable the Company to target rapidly growing markets
for lithium products in both Asia and Europe.
Admission and Dealings
The Subscription Shares will rank pari passu in all respects
with the Company's existing issued ordinary shares and the
Subscription Shares will be equivalent to 6.5 per cent. of the
enlarged issued share capital. Application has been made for the
admission of the Subscription Shares to trading on AIM and it is
expected that admission will occur and that dealings will commence
at 8.00 a.m. (UK time) on 30 May 2017 ("Admission"). The
Subscription is conditional, inter alia, on Admission becoming
effective.
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure
and Transparency Rules, following the issue of the Placing Shares,
the Company will have 131,906,539 common shares in issue. The
Company has no common shares held in treasury. At Admission the
total number of voting rights in the Company will therefore be
131,906,539. This figure may be used by shareholders in the Company
as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change in their interest in, the share capital of the Company under
the FCA's Disclosure and Transparency Rules.
The Subscription was completed in reliance upon exemptions from
applicable prospectus and registration requirements. Accordingly,
any trades of securities issued under the Subscription that occur
in Alberta or to a purchaser in Alberta would be subject to a hold
period equal to four months and one day from the date of issuance
(being September 25, 2017). Trades of securities occurring through
the CREST system among non-Alberta residents will not be subject to
this restriction. All of the shares acquired by Capital under the
Subscription will be deposited under the CREST system.
**ENDS**
For further information, please contact:
Bacanora Minerals Peter Secker, CEO info@bacanoraminerals.com
Ltd.
--------------------- --------------------------- --------------------------
Cairn Financial
Advisers LLP, Sandy Jamieson/Liam +44 (0) 20 7213
Nomad Murray 0880
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St Brides Partners,
Financial PR Frank Buhagiar/ Elisabeth +44 (0) 20 7236
Adviser Cowell 1177
--------------------- --------------------------- --------------------------
ABOUT BACANORA:
Bacanora is a Canadian and London listed lithium exploration and
development company (TSX-V: BCN and AIM: BCN). The Company is
exploring for, and developing a pipeline of international lithium
projects, with a primary focus on the Sonora Lithium Project. The
Company's operations are based in Hermosillo in northern Mexico.
The Company is led by a team with lithium expertise and proven mine
development, construction and operations experience.
The Sonora Lithium Project, which consists of ten mining
concession areas covering approximately 100 thousand hectares in
the northeast of Sonora State. The Company, through drilling and
exploration work to date, has established an Indicated Mineral
Resource (in accordance with National Instrument 43-101 - Standards
of Disclosure for Mineral Projects ("NI 43-101")) of 4.5 million
tonnes (LCE(2) ) and 2.7 million tonnes Inferred(3) . A
Pre-Feasibility Study completed in Q1 2016(1) demonstrated the
economics associated with becoming a 35,000 tpa lithium carbonate
and 50,000 tpa SOP producer in Mexico.
In addition to the Sonora Lithium Project, the Company also has
a 50% interest in the Zinnwald Lithium Project in southern Saxony,
Germany. The Zinnwald Lithium Project is located in a granite
hosted Sn/W/Li belt that has been mined historically for tin,
tungsten and lithium at different times over the past 300 years.
The strategic location of the Zinnwald Lithium Project allows
immediate access to the German automotive and downstream lithium
chemical industries.
1 See Technical Report on the Pre-Feasibility Study for the
Sonora Lithium Project, Mexico, 15 April 2016. The authors of the
PFS are Ausenco Limited, SRK and Independent Mining Consultants
Inc. A copy of this report is available under Bacanora's corporate
profile at www.sedar.com.
2 LCE = lithium carbonate (Li(2) CO(3) ) equivalent; determined
by multiplying Li value in percent by 5.324 to get an equivalent
Li(2) CO(3) value in per cent. Use of LCE is to provide data
comparable with industry reports and assumes complete conversion of
lithium in clays with no recovery or process losses.
3 See Amended Mineral Resource Estimate for the Sonora Lithium
Project, Mexico, April 2016. The lead author of the amended report
is Mr. Martin Pittuck (MSc., C.Eng., FGS, MIMMM) of SRK Consulting
(UK) Limited ('SRK'). A copy of this report is available under
Bacanora's corporate profile at www.sedar.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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