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Bacanora raises $65m for Mexico lithium project

4th February 2021

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Aim-listed Bacanora Lithium has successfully raised $65-million for its Sonora lithium project, in Mexico, setting the company on a path to becoming a lithium producer in the next two years.

The fundraise is the final piece of Bacanora’s 50% share of the financing required to bring into production Stage 1 of Sonora – a 35 000 t/y openpit lithium carbonate operation with joint venture partner Ganfeng.

“I am very grateful for the support shown by our existing shareholders and welcome all our new investors at this exciting new chapter. This is a major achievement for the company, and I thank all parties involved including our joint venture partner Ganfeng, which has shown further support for Bacanora by proposing to exercise its pre-emption right beyond this fundraising to maintain its position as our largest shareholder,” said CEO Peter Secker.

A total of 101 395 885 new ordinary shares in the company have been placed with institutional and professional investors by Citigroup Global Markets, Canaccord Genuity, WH Ireland, at a price of 45p a share, representing gross proceeds of about $62-million.

The price represents a 19.6% discount to the mid-market closing price of 56p on February 2, being the last practicable closing price prior to the announcement of the placing.

In conjunction with the placing, retail and other investors have subscribed for 5 600 000 new ordinary shares, raising additional gross proceeds of $3-million.

In addition, Ganfeng has stated its intention to potentially exercise its pre-emptive right at the placing price and to increase its holding in the company to up to a maximum of 29.99% in line with its original shareholding in 2019.

Completion of the investment from Ganfeng is conditional upon obtaining board approval and certain approvals and consents from authorities in China.

Edited by Creamer Media Reporter

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