(Alliance News) - Bacanora Lithium PLC on Tuesday said an investment from China has been approved for a second time, leaving just one more hurdle.
Bacanora shares were 9.8% higher on Tuesday morning in London at 35.68 pence each.
In May, Bacanora, which is developing Mexico's Sonora project, agreed a GBP14.4 million investment with Ganfeng Lithium Co Ltd, which would see Ganfeng take a 30% stake in Bacanora. This was finalised in June, and an offtake deal also was signed then.
Ganfeng received the first approval from the Chinese Ministry of Commerce in late July, and it has now received approval from China's National Development & Reform Commission. The final thumbs up needed is from the State Administration of Foreign Exchange, expected in the next few weeks, Bacanora said.
Ganfeng Deputy Chair Wang Xiaoshen said: "We are continuing to progress the approval process in China in order to complete our initial investment in Bacanora lithium and its Sonora project. We are looking forward to working with Bacanora to develop this world-class project.
"Our significant investment demonstrates our belief in the viability of the Sonora project and its ability to become a world class operation and support Ganfeng's strategy of growing to a 100,000 tonne a year lithium producer. Our technical team is commencing its review to identify areas where Ganfeng can add value to the project delivery."
"Ganfeng is committed to supporting Bacanora in its financing and commencing development of the Sonora project in the coming months," he continued.
Bacanora's announcement was noted by Cadence Minerals PLC, which owns 0.5% of Bacanora. Cadence shares were up 14% to 0.10p.