(Sharecast News) - Cadence Minerals shares jumped after the company said the start of activities at a lithium site in Mexico boded well for its two joint ventures in that country.
Bacanora Lithium started work on the Sonora project after raising $65m last week, Cadence said.
Cadence owns 30% of the Mexalit and Megalit joint venture companies. Mexalit owns five mineral concessions that form part of the 20-year mine plan for the Sonora project in northern Mexico.
Kiran Morzaria, Cadence's chief executive, said: "Today's announcement not only marks a significant step towards Bacanora's ambition to become a lithium producer in 2023, but also reflects positively on our ambitions for the Mexalit and Megalit joint ventures with Bacanora. We look forward to further news on the mine development."
Cadence shares rose 21% to 19.98p at 11:53 GMT. Bacanora shares were little changed at 45.51p.
Bacanora is building the project with its partner Ganfeng, the world's largest lithium metals producer. The companies are aiming for production of battery grade lithium products in 2023.
12 Feb 2015 08:00