(Alliance News) - Bacanora Lithium PLC on Monday said the remaining relevant approval for the strategic investment by Ganfeng Lithium Co Ltd has been received and, as a result, the company has now received GBP21.9 million of funds.
Bacanora shares were 19% higher on Monday morning in London at 41.20 pence each.
The funds from Ganfeng were received in exchange for a 29.99% equity interest in Bacanora and a 22.5% joint venture investment in the Sonora lithium project in Mexico.
In May, Bacanora agreed a GBP14.4 million investment with Ganfeng, which would see Ganfeng take the stake in Bacanora. This was finalised in June, and an offtake deal also was signed then.
Ganfeng previously received approvals from the Chinese Ministry of Commerce and from the National Development & Reform Commission. It was awaiting a final thumbs up from the State Administration of Foreign Exchange, which has now been received.
Following the investment, Ganfeng's Vice President & Vice-Chair Wang Xiaoshen was appointed as a director of Bacanora.
At the Sonora project, Bacanora's project team is continuing to progress the final design work for the mine, concentrator and kiln sections of the processing plant. Ganfeng's technical team has started work on the hydrometallurgical circuit and is reviewing sourcing key sections of the lithium production equipment from suppliers in China.
Bacanora's announcement was noted by Cadence Minerals PLC, which owns 0.5% of Bacanora. Cadence shares were down 0.7% at 7.70p.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Cadence Mineral (KDNC)