TIDMBCN
RNS Number : 5419J
Bacanora Lithium PLC
20 August 2019
Bacanora Lithium plc / Index: AIM / Epic: BCN / Sector: Natural
Resources
20 August 2019
Bacanora Lithium plc ("Bacanora" or the "Company")
Update on Strategic Investment by Ganfeng Lithium
Bacanora Lithium plc (AIM: BCN), the London traded lithium
company, is pleased to provide an update on its Investment
Agreement and Offtake Agreement ('the Strategic Investment' or 'the
Agreements') with leading global lithium company Ganfeng Lithium
Co., Ltd. ("Ganfeng" or "GFL"). As announced on 28 June 2019, the
Agreements have been submitted to the relevant authorities in China
for approval and completion. The first of the approvals, from the
PRC Ministry of Commerce (MOFCOM), was received by Ganfeng at the
end of July 2019 and we have now been informed that the second
approval has been processed by NDRC (National Development and
Reform Commission) and received by Ganfeng. It is anticipated that
the final approval from SAFE (State Administration of Foreign
Exchange) will be received following a Ganfeng board meeting to be
held in the coming weeks. Bacanora will provide further updates
once final approval is received.
Mr. Wang Xiaoshen, the Deputy Chairman of Ganfeng Lithium
commented, "We are continuing to progress the approval process in
China in order to complete our initial investment in Bacanora
Lithium and its Sonora Project. We are looking forward to working
with Bacanora to develop this world-class project. Our significant
investment demonstrates our belief in the viability of the Sonora
Project and its ability to become a world class operation and
support Ganfeng's strategy of growing to a 100,000tpa lithium
producer. 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." It is
proposed that Mr. Wang will join the Board of Bacanora as a
Director upon the completion of the Ganfeng investment.
About GFL
GFL is the world's third largest and China's largest lithium
compounds producer and the world's largest lithium metals producer
in terms of production capacity as of 31 December 2017, according
to CRU International Limited. GFL's operations are vertically
integrated, encompassing all critical stages of the value chain,
including upstream lithium extraction, midstream lithium compounds
and metals processing as well as downstream lithium battery
production and recycling. GFL has one of the most comprehensive
product offerings split into five major categories of more than 40
lithium compounds and metals products.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
**S**
For further information, please contact:
Bacanora Lithium plc Peter Secker, CEO info@bacanoralithium.com
Janet Boyce, CFO
Cairn Financial Advisers Sandy Jamieson / Liam +44 (0) 20 7213
LLP, Nomad Murray 0880
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Citigroup Global Markets, Tom Reid / Patrick Evans +44 (0) 20 7986
Broker / Matthew Kenney 4000
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+44 (0) 20 7523
Canaccord Genuity, Broker James Asensio 8000
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St Brides Partners, Frank Buhagiar / Gaby +44 (0) 20 7236
Financial PR Adviser Jenner 1177
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ABOUT BACANORA LITHIUM:
Bacanora owns ten mining concession areas covering approximately
100 thousand hectares in the northeast of Sonora State in Mexico.
Seven of these ten mining concessions (the 'Sonora Lithium
Project'(1) ) were included in the Feasibility Study announced 12
December 2017. The Company, through drilling and exploration work
to date, has established a Measured plus Indicated Mineral Resource
estimate of over 5 Mt (comprising 1.9Mt of Measured Resources and
3.1Mt of Indicated Resources) of LCE(2) and an additional Inferred
Mineral Resource of 3.7 Mt of LCE. The Company's Feasibility Study
has established Proven Mineral Reserves (in accordance with NI
43-101) of 1.67 Mt and Probable Mineral Reserves of 2.85 Mt LCE and
confirmed the economics associated with becoming a 35,000 tpa
lithium carbonate and 30,000 tpa SOP producer in Mexico. In
addition to the Sonora Lithium Project, the Company also has a 50%
interest in the Zinnwald Lithium Project and the Falkenhain and
Altenberg Licences in southern Saxony, Germany. Each of the
Zinnwald Lithium Project, and the Falkenhain and Altenberg Licences
are 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 and the Falkenhain and Altenberg Licences provides close
geographical proximity to the German automotive and downstream
lithium chemical industries.
1. The Sonora Lithium Project is comprised of the following
lithium properties: La Ventana lithium concession, which is 100
percent owned by Bacanora and El Sauz and Fleur concessions, which
are held by Mexilit S.A. de C.V. ('Mexilit') which is owned 70
percent by Bacanora and 30 percent by Cadence Minerals Plc.
2. LCE = lithium carbonate (Li(2) CO(3) ) equivalent; determined
by multiplying Li value in percent by 5.323 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.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Although we believe that the expectations
reflected in the forward-looking information are reasonable, there
can be no assurance that such expectations will prove to be
correct. We cannot guarantee future results, performance or
achievements. Consequently, there is no representation that the
actual results achieved will be the same, in whole or in part, as
those set out in the forward-looking information.
Forward-looking information is based on the opinions and
estimates of management at the date the statements are made, and
are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
information. Some of the risks and other factors that could cause
the results to differ materially from those expressed in the
forward-looking information include, but are not limited to:
commodity price volatility; general economic conditions in the UK,
the United States, Mexico and globally; industry conditions,
governmental regulation, including environmental regulation;
unanticipated operating events or performance; failure to obtain
industry partner and other third party consents and approvals, if
and when required; the availability of capital on acceptable terms;
the need to obtain required approvals from regulatory authorities;
stock market volatility; competition for, among other things,
capital, skilled personnel and supplies; changes in tax laws; and
the other risk factors disclosed under our profile on SEDAR at
www.sedar.com. Readers are cautioned that this list of risk factors
should not be construed as exhaustive.
The forward-looking information contained in this news release
is expressly qualified by this cautionary statement. We undertake
no duty to update any of the forward-looking information to conform
such information to actual results or to changes in our
expectations except as otherwise required by applicable securities
legislation. Readers are cautioned not to place undue reliance on
forward-looking information.
IMPORTANT NOTICE
The contents of this announcement have been prepared by and are
the sole responsibility of Bacanora.
The contents of this announcement have been approved solely for
the purposes of section 21(2)(b) of the Financial Services and
Markets Act 2000 by Citigroup Global Markets Limited, whose
registered office is at Citigroup Centre, Canada Square, Canary
Wharf, London, E14 5LB. Citigroup Global Markets Limited, which is
authorised by the Prudential Regulation Authority and regulated by
the Financial Conduct Authority and the Prudential Regulation
Authority in the United Kingdom, and Canaccord Genuity Limited,
which is authorised and regulated by the Financial Conduct
Authority, are each acting exclusively for Bacanora and no one else
in connection with the Project, and will not regard any other
person as their client in relation to the Project and will not be
responsible to anyone other than Bacanora for providing the
protections afforded to their respective clients, nor for providing
advice in relation to the Project or the contents of this
announcement or any transaction, arrangement or other matter
referred to herein.
None of Citigroup Global Markets Limited, Canaccord Genuity
Limited nor any of their respective subsidiary undertakings,
affiliates or any of their respective partners, directors,
officers, employees, advisers, agents or any other person accepts
any responsibility or liability whatsoever for, or makes any
representation or warranty, express or implied, as to the truth,
accuracy, completeness or fairness of the information or opinions
in this announcement (or whether any information has been omitted
from the announcement) or any other information relating to
Bacanora, or any of their subsidiaries or associated companies,
whether written, oral or in a visual or electronic form, and
howsoever transmitted or made available or for any loss howsoever
arising from any use of this announcement or its contents or
otherwise arising in connection with it. Each of Citigroup Global
Markets and Canaccord Genuity, Broker (together, the "Banks") is
acting exclusively for Bacanora and no one else in connection with
any matter referred to in this announcement and will not be
responsible to anyone other than Bacanora for providing the
protections afforded to their respective clients nor for providing
advice in relation to any matter referred to in this announcement.
Neither the Banks nor any of their respective subsidiaries,
branches or affiliates owes or accepts any duty, liability or
responsibility whatsoever (whether direct or indirect, whether in
contract, in tort, under statute or otherwise) to any person who is
not a client of the Banks in connection with this announcement, any
statements contained herein or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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