(Alliance News) - Bacanora Lithium PLC on Wednesday said it is well on its way to transitioning to a lithium producer from an exploration company as its capital requirements for its Sonora lithium project in Mexico are now met follwoing a successful placing and retail offer.
The lithium explorer focused on Mexico said it successfully raised approximately USD65 million through the placing of shares as well as a retail offer.
A total of 101.4 million shares were placed at 45 pence each, raising proceeds of about USD62 million, while an extra USD3 million was raised after retail and other investors subscribed for 5.6 million shares.
The bookrunners for the placement included Citigroup Global Markets Ltd, Canaccord Genuity Ltd and WH Ireland Ltd.
Chief Executive Peter Secker said: "I am pleased to announce the results of this successful fundraising which will allow Bacanora to meet its capital commitments for the development of our flagship Sonora lithium project in Mexico and commence our transition from exploration company to lithium producer by 2023."
"The fundraise is the final piece of the company's 50% share of the financing required to bring stage 1 of Sonora into production. This successful fundraising will allow the Company to achieve its ambition of becoming an international lithium production company," he added.
Bacanora shares were down 15% at 47.40 pence each in London on Wednesday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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