Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Yes - creating tunnels and shafts possible also in hard rock takes money time and expertise. Sonora has always been a 'scoop it up' type of mine..
If you look at the two very different Assets. One is safe clays easily dug up and processed. And is a huge resource with plenty of surrounding land that possibly has further Lithium but has not been surveyed and drilled.
The Zinwald resource is much smaller and I believe requires Mining technique of shafts and tunnels. I imagine Erris already with a Gold Mine in Sweden and Irish Zinc mine has expertise in this type of mining. Although in the RNS it wasn't clear if they are prospecting or actually producing Gold and ZInc. Ultimately we hope that Bacanora will regain its investments in Zinwald and then some. In the meantime it is a least attempting to release value from Zinwald where it currently has no resources to further its progress.
I don't know this share as well as some here but would BCN really want an asset which is likely to absorb its current cash resources? BCN have cash , but with plant development in Mexico I don't think they can afford to face other calls on that cash. So that means inevitable dilution, but retention of a reasonable share in an asset that at least may well now get developed under the arrangements announced earlier. Unless it goes horribly wrong Mexico seems a low cost environment so has to be the one to focus on - the same cannot be said of Europe with its high wage, highly regulated economies?
As usual I fully welcome correction or different views, but I do not appreciate abuse.
I suppose if you look at it like this then yes - dilution of an exchanged/acquired asset
Post period end, GRES completed its concentrator design work and Ganfeng completed its flow sheet design testwork for the production of battery-grade lithium from samples provided by the pilot plant; Ganfeng is now integrating these results into a larger scale design, and remains on schedule to deliver its final engineering packages at the end of Q4 2020.
Looks like BCN are still on schedule for end of Q4 2020.
My interpretation of todays RNS' are positive.
It is clear that the main focus is, should be and will be Mexico, which is the best use of managements time. The German operation appears to be a diversion of Managements time, and seemed destined to be given low priority given the funding requirements elsewhere. In short would Germany ever be developed? To spilt off the German operation while retaining a substantial shareholding seems logical - even if dilution of that shareholder occurs as a result of the inevitable fundraising to progress it - at least BCN hopefully get a decent % of something rather than a much higher % of sod all.
Mr C - I believe we are subject to dilution......
Bacanora will be selling its 50% share in DL plus €1.35m cash in exchange for new shares in Erris, giving Bacanora a 70% ownership stake in Erris and a net profit royalty. This percentage ownership will reduce as Erris will be raising additional funds by means of the Placing as part of the process in order to accelerate the further development of Zinnwald.
"This development importantly ensures Bacanora's sole focus is now on Sonora and all the Company's energy is directed at bringing Sonora's stage 1 into fruition. Bacanora represents one of London's few listed pure-play lithium development companies, and we are working tirelessly to unlock the substantial value for shareholders by achieving our number one goal, of becoming an international lithium production company."
Webcast presentation
Bacanora will be hosting a webinar on Tuesday, October 6, 2020 at 3:00 p.m. BST. The webinar will include a question and answer session following the presentation. Please submit any questions by Friday, October 2, 2020 via email to bacanora@tavistock.co.uk.
I would say the outlook for battery demand has changed dramatically over recent weeks and Sonora is the only focus BCN needs, stage 1 and 2 might be significantly higher production, just getting their house in order it would seem IMVHO.
I think this is my take, a non dilutive capital raise...
so much to selling Zinnwald to get additional proceeds to fund Sonora. Have I read it right that BCN will not actually receive any cash and in fact have to pay c£1.3m for commitments already agreed?
TBTT - We still own a part of it, BCN are struggling to get Sonora off the ground.. We'd all be in old folks homes before they get any lithium out of Zinnwold...
short calculation:
hares (M) % gbp Eur MC (EUR)
Shares before 38,84 30% 6,12 0,0669 2598396
BCN cap. raise 90,62 70% 6,12 0,0669 6062478
Shares after 129,46 6,12 0,0669 8660874
So BCN will get appr. 4.71M EUR for Zinnwald ... (6.06M EUR - 1.35M EUR) ... depending on Share price for Erris ...
I'm not sure how you spin this typical AIM manoeuvre as good news for Bacanora shareholders. BCN are paying to own less of a supposedly valuable asset! Oh, and aren't BCN already a public company themselves? So the quoted reason for the transaction is ridiculous.
Erris looks to be a small exploration company. My reading is this is a way of doing a capital raise for Zinnwold with minimal direct dilution for BCN. Is this correct?
Newboy58, hope all well. Yep not bad news. ATB
That should take Zinnwold off the backburner.. good news long term I recon
Peter Secker, CEO of Bacanora said:
"The Proposed Transaction ensures that the development of Zinnwald, which is strategically located in Germany with immediate access to the German and wider European automotive and downstream lithium chemicals industries, can be accelerated and Zinnwald will get the full attention it deserves. Bacanora's commitment has always been to realise shareholder value from Zinnwald, and spinning it out into a separately listed vehicle will allow us to achieve this.
The Erris management team are of an extremely high calibre and we are confident that this is the best outcome for Bacanora's shareholders, who will in turn become indirect shareholders in Erris. Zinnwald is an excellent project and we look forward to seeing it come to production under Erris' ownership."
no 2
https://www.londonstockexchange.com/news-article/BCN/proposed-sale-of-holding-in-zinnwald/14702980
Sorry
https://www.londonstockexchange.com/news-article/BCN/interim-report/14703100