JOHANNESBURG (miningweekly.com) - Lithium company Bacanora Minerals said on Friday that it would restart the process of changing its domicile of jurisdiction from Canada to the UK.
The company had sought shareholder approval to effect the redomicile in September 2016, but failed to obtain the requisite approval.
On Friday, Bacanora again made its case for moving the company to the UK, pointing out its success in raising capital in London. Since listing on Aim in 2014, Bacanora had already added three global institutional investors and a major offtake partner to its shareholder base.
The company said it intended to raise a significant amount of new debt and equity financing to fund its growth as an international lithium company, with new projects in Mexico and Germany.
The company stated that a UK domiciled company, with its primary listing on Aim, was the best way to achieve this.
Bacanora said that it would move its head office and its senior management to the UK, and as a result, the board anticipated that the re-domicile would result in significant cost and administrative savings for the company and its subsidiaries.
The company further stated that the re-domicile would be effected by means of a plan of arrangement under the Business Corporations Act, whereby all existing common shares in Bacanora will be exchanged, through a wholly owned subsidiary of Bacanora Lithium for ordinary shares in Bacanora UK, a company that has been established in the UK to become the new holding company for the group.
The share capital of Bacanora UK would be substantially identical to the existing share capital of Bacanora and the rights attaching to the new ordinary shares in Bacanora UK would be substantially the same as for the current Bacanora common shares.
In all other respects, the group would remain unchanged as a result of the transaction, which would be subject to customary shareholder, regulatory and Canadian court approval.
The company said it would send to shareholders a management information circular setting out full details of the transaction and containing notice of a general and special meeting to consider, and if thought fit, approve the transaction.
Prior to the transaction becoming effective, it is proposed that Bacanora UK would apply for its ordinary shares to be admitted to trading on Aim. Upon the admission of Bacanora UK shares to trading on Aim, the company intends to delist its common shares from the TSX-V and cancel trading of its common shares on Aim.
Further announcements will be made in due course in relation to the timetable.