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"Each of the key milestones achieved over the past 12 months demonstrated increased shareholder value and moves us ever closer to production, further distinguishing us from our peers. Indeed, in the 12 months since our last AGM, the Bacanora share price has increased by 25%, compared with our lithium peers who have seen share price declines of between 10% and 74%.

"In order to appreciate the value of our Company, it is important to understand what first attracted Ganfeng and M&G to Bacanora and our world class Sonora Lithium Project in Mexico. I believe this includes Sonora's large scale and high grade resources, proven processing route, robust economics, strong shareholder base, a management team with a proven track record of delivery, a supportive jurisdiction, and access to end markets. Sonora is set to be one of the lowest cost operators in the industry at around US$4,000/t production cost. This low-cost profile is a significant advantage at a time when Australian hard rock producers' higher cost production models are coming under increasing pressure as a result of falling spodumene prices.

"The considerable institutional and industry backing we continue to receive is testament to the robust economics of Sonora. Ganfeng is now the largest shareholder in the Company and is also a joint-venture partner in Sonora. Ganfeng has embarked on a technical review of the hydrometallurgical circuit of the processing plant, with a view to potentially sourcing key sections of the production equipment from Chinese suppliers and is expected to be completed in H1 2020. Both Bacanora and Ganfeng are also developing testwork programmes to evaluate the potential to produce other high value lithium products at Sonora in addition to battery-grade lithium carbonate.

"Our confidence extends to our Zinnwald project in Germany. With a Feasibility Study for a 5,112 tpa (~7,285 tpa LCE) of battery-grade lithium fluoride operation, project NPV of €428 million, an IRR of 27.4%, and a resource of 124,974 tonnes of contained lithium, Zinnwald's potential to supply the European market with high value lithium products is clear. Discussions with strategic partners with a view to funding the €159 million capital cost of the project are ongoing.

"With major institutions and industry players on our shareholder register and a strong retail investor following, we are well-placed to complete the finance package for Sonora in H1 2020. Before then, thanks to the progress made over the last twelve months, Bacanora has a cash rich balance sheet which enables us to invest in long lead items and commence bulk earthworks. Our focus remains to start production at Sonora at the earliest opportunity, as we look to realise the Project's potential and, in the process, generate value for all our shareholders."

AGM Update
Thu, 12th Dec 2019 07:00

RNS Number : 5806W
Bacanora Lithium PLC
12 December 2019

Bacanora Lithium plc / Index: AIM / Epic: BCN / Sector: Natural Resources

Bacanora Lithium plc ("Bacanora" or the "Company")

AGM Update

Bacanora Lithium plc (AIM: BCN), the London traded lithium company, is holding its Annual General Meeting ('AGM') later today. During the AGM, Bacanora Chairman, Mark Hohnen will update shareholders on key milestones achieved over the past 12 months, specifically with regards to the Company's flagship lithium project in Sonora, Mexico ('Sonora' or the 'Project').

Highlights for the year 2019

2019 has been a critical year for Bacanora and is one that has resulted in a number of significant developments that have continued to add incremental shareholder value over the past 12 months. These developments include:

· Securing one of the world's biggest lithium producers, Ganfeng Lithium Co., Ltd. ('Ganfeng'), as a 29.9% cornerstone investor

· Securing Ganfeng as our joint-venture development partner with a 22.5% direct investment in Sonora

· Securing 100% of Stage 1 production at Sonora under two guaranteed offtake agreements with Ganfeng and Hanwa and 75% of Stage 2 production with Ganfeng

· Continued longstanding support from our earliest institutional investor M&G Plc ('M&G') who increased their investment in Bacanora to 19.9%

· Completion of a Feasibility Study for the Zinnwald Lithium Project in Germany

"Each of the key milestones achieved over the past 12 months demonstrated increased shareholder value and moves us ever closer to production, further distinguishing us from our peers. Indeed, in the 12 months since our last AGM, the Bacanora share price has increased by 25%, compared with our lithium peers who have seen share price declines of between 10% and 74%.

"In order to appreciate the value of our Company, it is important to understand what first attracted Ganfeng and M&G to Bacanora and our world class Sonora Lithium Project in Mexico. I believe this includes Sonora's large scale and high grade resources, proven processing route, robust economics, strong shareholder base, a management team with a proven track record of delivery, a supportive jurisdiction, and access to end markets. Sonora is set to be one of the lowest cost operators in the industry at around US$4,000/t production cost. This low-cost profile is a significant advantage at a time when Australian hard rock producers' higher cost production models are coming under increasing pressure as a result of falling spodumene prices.

"The considerable institutional and industry backing we continue to receive is testament to the robust economics of Sonora. Ganfeng is now the largest shareholder in the Company and is also a joint-venture partner in Sonora. Ganfeng has embarked on a technical review of the hydrometallurgical circuit of the processing plant,

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