Bacanora receives £21.96m from Ganfeng
Global lithium company Ganfeng Lithium has received approval from China to buy a 29.99% equity interest in Bacanora Lithium and a 22.5% joint venture interest in the UK-based company’s Sonora lithium project, in Mexico.
Bacanora has now received £21.96-million from Ganfeng in exchange for its interest in the company and the project.
Sonora forms part of Ganfeng's strategy of growing to a 200 000 t/y lithium-carbonate-equivalent producer by 2025.
The Chinese major recently announced its intention to proactively advance the development of the Sonora lithium clay project during the second half of the year. 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.
In China, work continues to increase the capacity of Ganfeng's battery-grade lithium carbonate production line in Ningdu county, Jiangxi, which has reached its 17 500 t/y 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 t/y capacity at Basic Lithium plant in Xinyu with commissioning targeted in 2020.
Ganfeng VP and vice-chairperson Wang Xiaoshen has been appointed a director of Bacanora.
Bacanora's share price rose 17% on Monday to 40.77p each, giving the company a market capitalisation of £54.82-million.
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