Copied from Bcn for Frankie11 Sep 2018 14:19
In September, Bacanora Lithium will begin the construction of Sonora Lithium, a mining project located in the Sierra Madre Occidental, which will place the State of Sonora as one of the world's leading producers of a vital element for the batteries of cell phones, laptops and automobiles. electric
The potential of the project is dictated by the lithium demand of Asian and American companies, such as Tesla; But, before production begins, the mining company will have to go out and look for capital.
Sonora Lithium, which will start operating in 2020, in the municipality of Bacadéhuachi, will require an investment of 420 million dollars (mdd) for the construction of its first stage. The amount is high, but the retribution will be too, since it is a business with operating margins estimated above 40%.
In recent years, the company has been given the task of concluding feasibility studies, building a pilot plant to produce lithium carbonate and obtaining permits and land.
One of the most important jobs has been the raising of capital. As of April, the company listed on the London AIM Stock Exchange had only 20 million dollars, but on July 16 it announced the entry of another 65 million dollars of investment from the General Reserve Fund of the State of Oman (SGRF). in English) and 25 million dollars from Hanwa (partner of Bacanora Lithium). To this must be added the line of 150 million dollars of debt secured by RK Mine Finance, one of the leading specialized mining lenders, and a 100 million dollar placement of the mining company.
At the moment, most of the capital comes from the United Kingdom. "But yes, we are looking for new investors from Mexico, North America and Asia," says Peter Secker, CEO of Bacanora Lithium, a company founded approximately seven years ago as the holding company of Bacanora Minerals (Bacanora Canada), a Canadian company that explores and develops industrial mining projects, focused mainly on lithium.
"All I can say is that we've talked to a lot of people in Mexico. We will continue doing it ", adds Secker. The manager ensures that, when they achieve more liquidity, they will seek to consolidate new Mexican investors, which is why they have already met with people from the mining, raw materials, financial and energy sectors.
The big market
The construction of the mine will begin in an environment in which the demand for lithium is on the rise and the global market develops strongly. The ceo of Bacanora Lithium calculates that, at present, 95% of the consumption comes from Asia: China, Korea and Japan.
The manufacture of batteries absorbs 35% of the global production of the element; that of ceramic and glass, 32%; fats and lubricants, 9%; air conditioning, 5%; polymers, 4%; primary aluminum production, 1%; and other uses, 9%, according to the report "Lithium market profile", prepared by the Ministry of Economy (SE), dated December 2017.
Originally, the exploitation of lithium went to the ma
Sign In
Follow the stocks
