If you would like to ask our webinar guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund a question please submit them here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksBCN.L Share News (BCN)

  • There is currently no data for BCN

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Erris Surges As It Acquires Bacanora's 50% Stake In Lithium Asset

Thu, 08th Oct 2020 19:30

(Alliance News) - Erris Resources PLC on Thursday said it has agreed a deal with Bacanora Lithium PLC to buy its 50% stake in Deutsche Lithium GmbH, whose principal asset is the Zinnwald lithium project in Germany.

Erris also announced plans for a name change, a placing and the sale of its Loch Tay gold project.

Its shares were restored to trading on Thursday, closing 63% higher at 10.00 pence each in London. Bacanora shed 18% to 31.50p.

Bacanora will sell its 50% Deutsche Lithium stake and will also part with EUR1.4 million in cash in exchange for 90.6 million Erris shares and a 2% net profit royalty. Bacanora will own a 44% stake in Erris.

"The proposed transaction is therefore also subject to Erris shareholders approving the waiver of the UK Panel on Takeovers and Mergers of any obligation by Bacanora or its concert parties to make a general offer under Rule 9 of the City Code on Takeovers and Mergers," Bacanora added.

The Zinnwald project, which has a mining licence to the end of 2047, hosts a belt "mined historically for tin, tungsten, and lithium at different times over the past 300 years".

"The strategy of Erris has been the identification and acquisition of attractive mining development projects in low risk, preferably European, jurisdictions. The directors of Erris are of the opinion that the Zinnwald Lithium Project represents an appropriate acquisition target that will provide the company with a core asset with several compelling attribute," Erris said.

Upon completion of the transaction, Erris will change its name to Zinnwald Lithium PLC.

The company will also shift its Loch Tay gold project.

"The Erris board believes that the Zinnwald Lithium Project should be the principal focus of Erris going forward. However, it considers that what it sees as the significant potential of the Loch Tay gold project should accrue to the existing shareholders of the company," Erris explained.

"The Loch Tay gold project is owned by Erris's subsidiary company, Erris Gold Resources. Following completion of the proposals and the passing of the resolutions, all existing shareholders in Erris will receive shares in Erris Gold Resources, pro rata on a one-for-one basis to their shareholding of existing ordinary shares."

The company has also conditionally raised GBP3.8 million in a placing of 75.0 million shares at 5p each.

"The net proceeds from the placing of approximately GBP3.0 million will be applied to the professional fees incurred in relation to the transaction and for general working capital purposes," Erris added.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

More News
21 Jan 2022 14:27

IN BRIEF: Bacanora Lithium delisting date nears amid Ganfeng takeover

IN BRIEF: Bacanora Lithium delisting date nears amid Ganfeng takeover

Read more
23 Dec 2021 21:13

IN BRIEF: Bacanora Lithium sets delisting date after Ganfeng takeover

IN BRIEF: Bacanora Lithium sets delisting date after Ganfeng takeover

Read more
20 Dec 2021 13:06

CORRECT(Dec 17): Bacanora Lithium takeover by Ganfeng unconditional

CORRECT(Dec 17): Bacanora Lithium takeover by Ganfeng unconditional

Read more
17 Dec 2021 21:23

IN BRIEF: Bacanora Lithium takeover by Ganfeng now unconditional

IN BRIEF: Bacanora Lithium takeover by Ganfeng now unconditional

Read more
12 Nov 2021 20:26

IN BRIEF: Ganfeng says Bacanora takeover backed by about 57%

IN BRIEF: Ganfeng says Bacanora takeover backed by about 57%

Read more
20 Oct 2021 19:28

IN BRIEF: Bacanora Lithium gains court approval for capital reduction

IN BRIEF: Bacanora Lithium gains court approval for capital reduction

Read more
20 Oct 2021 12:25

Bacanora Lithium capital reduction plans get court approval

(Sharecast News) - Bacanora Lithium said on Wednesday that its capital reduction plans had now been approved by the High Court, as it updated the market on the Sonora Project.

Read more
4 Oct 2021 22:00

TRADING UPDATES: Bacanora not worried of Mexico changes; Helios buys

TRADING UPDATES: Bacanora not worried of Mexico changes; Helios buys

Read more
4 Oct 2021 15:40

Bacanora reassures shareholders over proposed law in Mexico

(Sharecast News) - Lithium development company Bacanora updated the market in light on new legislation around lithium mining announced by the government of Mexico on Monday.

Read more
9 Sep 2021 11:33

EARNINGS UPDATES: STV, Chaarat, Sportech, Bacanora enter black

EARNINGS UPDATES: STV, Chaarat, Sportech, Bacanora enter black

Read more
25 Aug 2021 17:30

IN BRIEF: Bacanora agrees to GBP285 million Ganfeng takeover offer

IN BRIEF: Bacanora agrees to GBP285 million Ganfeng takeover offer

Read more
24 Aug 2021 15:59

Court finds against Bacanora in estate litigation

(Sharecast News) - Bacanora Lithium updated the market on its litigation with the estate of Colin Orr-Ewing over its challenge to the validity of the lithium royalty over the Sonora Lithium Project on Tuesday.

Read more
24 Aug 2021 12:35

TRADING UPDATES: IG Design starts year well; Ilika in Stereax progress

TRADING UPDATES: IG Design starts year well; Ilika in Stereax progress

Read more
8 Jul 2021 20:26

TRADING UPDATES: Bank of Georgia drops buffer; Sureserve nabs contract

TRADING UPDATES: Bank of Georgia drops buffer; Sureserve nabs contract

Read more
1 Jul 2021 19:26

TRADING UPDATES: Gym Group bulks up with placing; 88 Energy debt free

TRADING UPDATES: Gym Group bulks up with placing; 88 Energy debt free

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.