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Bacanora Minerals experienced trading volumes much higher than average both in London and on the TSX Venture on Friday on speculation that it will soon issue a positive update on its Mexican lithium projects. Rare Earth Minerals, which holds a 30-percent interest in Bacanora’s subsidiaries, also experienced a price spike and higher-than-average trading volumes.
In London, Bacanora was up nearly 15 percent, at GBP47.10, with its shares trading at over four times their average volume. The company saw similar activity on the TSX Venture, gaining 36 percent to trade at $0.90 as of 10:17 a.m. EST, with trading volumes about five times their normal daily average. Rare Earth Minerals rose 21 percent in London, to GBP1.06.
Responding to the spike in activity, Bacanora put out no fewer than three press releases on Friday morning. The company first commented on what it understood to be speculation from the UK press regarding an update on its lithium properties, then put out a similar release noting “the continued trading activity” and another that reassured investors that “Bacanora expects to provide an update on its operations in due course.”
“After speaking with REM management, Bacanora understands that REM has commissioned some independent work of its own in respect of certain of their jointly owned properties, which could result in information arising at some point in time that may be material,” the company added.
Rare Earth Minerals put out a similar statement noting that it expects to provide an update on operations soon.
Bacanora’s Sonora lithium project consists of 10 concessions in Sonora, Northern Mexico. Two concessions (La Ventana and La Ventana 1) are 100 percent owned by Bacanora, while the other eight are owned through two 70/30 joint ventures with Rare Earth Minerals. A preliminary economic assessment has been completed for seven of the concessions, including the La Ventana concessions. Currently, the company is conducting a drill program designed to upgrade and expand lithium resources at the project and to support a prefeasibility study.
Rare Earth Minerals upped its shareholding in Bacanora back in September.
Shares of Bacanora are down over 40 percent year-to-date in London, but have gained over 100 percent over the same period on the TSX Venture.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.