Bacanora raises $65m for Mexico lithium project
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.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation