BCN.L Share News (BCN)

(Sharecast News) - Lithium development company Bacanora Lithium announced on Friday that the board of its cornerstone investor and offtake partner Ganfeng Lithium had approved a resolution to exercise its pre-emptive right and to increase its holding in the company.
The AIM-traded firm said Ganfeng would subscribe for a total of 53,333,333 new shares at a placing price of 45p each, representing gross proceeds of around $31m.

Completion of the investment remained conditional on obtaining certain approvals and consents from authorities in the People's Republic of China.

On completion of the investment, Bacanora said it would have 384,144,901 shares in issue and Ganfeng would have an ownership level of 28.88%.

"We are delighted that our cornerstone partner, Ganfeng, has shown yet more commitment to Bacanora and the Sonora Lithium Project, located in Mexico, retaining its position as the company's largest shareholder," said chief executive officer Peter Secker.

"This additional funding further solidifies our financial position as we head towards the start of construction.

"We look forward to providing more updates in the coming period on the final parts of the engineering design and the start of site work preparation."

At 1245 GMT, shares in Bacanora Lithium were up 1.31% at 46.5p.