Aim-listed Bacanora Lithium’s share price was dented on Monday by the news that it has not yet concluded a previously announced investment agreement with the sovereign wealth fund of Oman.
The company stated that the agreement with the State General Reserve Fund of Oman, which entails a proposed $65-million strategic investment and offtake for the Sonora project, had expired, but stressed that it was in “active discussions” to conclude the agreement.
Bacanora’s stock fell to a low of 19.25p a share on Monday, down 11% on Friday’s closing price.
The lithium company, however, affirmed that it remained committed to completing the funding package for Sonora in the second quarter, with a view of starting first production at Sonora in the second half of 2021.
The lithium carbonate operation at Sonora will require nearly $800-million for a phased project. Stage 1 will cost about $420-million and will produce 17 500 t/y, followed by Stage 2 that will cost $380-million, doubling capacity to 35 000 t/y of lithium carbonate.