Bacanora Minerals Raises $17.8 Million to Advance Sonora Project

Bacanora Minerals (TSXV:BCN) reported it had raised roughly C$17.8 million to advance work at its Sonora lithium project in Mexico.
As quoted in the press release:

he Placing is part of the Company’s continuing strategy to become a large scale supplier to the lithium market, where demand is expected to continue growing rapidly thanks to lithium’s key role in highly innovative industries such as smartphones, electric vehicles and energy storage. Through the Placing, Bacanora has secured its first major institutional shareholder as well as receiving support from pre-existing shareholders.
Rare Earth Minerals Plc (“REM”), one of the Company’s largest existing shareholders, has reaffirmed its support by participating in the Placing to maintain its 17% interest by acquiring 1,973,407 Placing Shares, taking its total holding to 16,632,915 common shares in the Company, representing 17.21% of the issued and outstanding share capital. As a substantial shareholder in the Company, REM’s participation in the Placing constitutes a related party transaction under Multilateral Instrument 61-101 – “Protection of Minority Security Holders in Special Transactions“, however exemptions are available from the minority shareholder approval and valuation requirements set forth in the foregoing Multilateral Instrument.
The funds raised will be used to advance the Company’s Sonora Lithium Project(1) in Mexico, one of the largest lithium resources in the world, containing estimated Indicated Mineral Resources of 1.12 million tonnes (“Mt”) of lithium carbonate equivalent (LCE)(2) and Inferred Mineral Resources of 6.3 Mt LCE. Specifically, the funds will enable the Company to fully fund the completion of the Bankable Feasibility Study (assuming satisfactory completion of the Pre-Feasibility Study), which is currently scheduled to commence in the first half of 2016. In addition, the proceeds will be used to facilitate the upgrade and continuous running of the Company’s operational pilot plant in Hermosillo to produce bulk quantities of lithium products to supply to long term off-take parties with whom the Company remains in ongoing discussions. Testwork previously undertaken at the lithium carbonate pilot plant facility has produced high quality lithium carbonate for initial off-take discussions.

Bacanora Chairman, Colin Orr-Ewing, said:

We are pleased to welcome our first major UK institution to our shareholder register and are equally delighted by the continued support shown by our longstanding shareholders. We believe this endorsement is another clear indication of the potential of the Sonora Lithium Project and provides further impetus to our strategy to become a major player in the rapidly emerging lithium market. To have successfully raised funds during what continues to be a challenging environment for commodities in general highlights the attractive dynamics of the lithium market, thanks to the metal’s key role in innovative and fast growing industries such as mobile communications and electric cars. With the funds in place to complete a Bankable Feasibility Study for Sonora and also to upgrade our Pilot Plant, 2016 is set to be a highly active period for Bacanora and we look forward to providing further updates on our progress over the coming months.

Click here for the full press release.