JOHANNESBURG (miningweekly.com) – UK- and Canada-listed lithium company Bacanora said on Thursday that the completion date of its previously announced equity offering with Chinese institutional fund management group NextView had been extended, but confirmed that both parties remained committed to the funding deal.
In December, Bacanora announced that NextView had agreed to acquire 32 976 635 common shares in the company at 94.53p each, for an aggregate amount of £31.17-million, or about C$53.5-million. The transaction was meant to have closed at the end of January.
Bacanora said on Thursday that it would provide a new timeline when one became available.
The capital raised through the NextView deal will be used for the continued development of the company's Sonora lithium project, in Hermosillo in northern Mexico.
Bacanora also agreed to supply NextView with 5 000 t/y of lithium carbonate produced at Sonora on a best-endeavours basis at market prices from its Stage 1 production, with a firm commitment to supply 8 000 t/y of lithium carbonate during Stage 2 and a best-endeavours promise to supply a further 7 000 t/y during Stage 2.
NextView will assist the company in procuring project debt financing for Sonora.