No Nextview.....28 Feb 2018 04:48
TSX-V/AIM Symbol: BCN
BACANORA PROVIDES UPDATE RE INVESTOR FINANCING
BACANORA MINERALS LTD. ("Bacanora" or the "Company") (TSX-V: BCN and AIM: BCN), the Canadian and London listed lithium company, provides an update regarding its proposed equity offering with NextView Capital ("NextView"). As announced on 14 December 2017, NextView previously entered into a binding placing letter (the "Placing Letter") with the Company pursuant to which it agreed to acquire 32,976,635 common shares in the Company (the "Placing") at a price of 94.53 pence (approximately C$1.6223) per share for aggregate gross proceeds of �31,172,813 (approximately C$53,498,000). The initial target date for completion of the Placing was end of January 2018. The Company has fulfilled all of its obligations in respect of the Placing, however, NextView has failed to forward the Placing proceeds to the Company, leaving it in default under the terms of the Placing Letter.
In spite of the Company's best efforts to ensure compliance, NextView has failed to complete the Placing as contemplated under the binding Placing Letter. In addition, discussions have not resulted in any alternative proposals that would, in the opinion of management, be in the best interests of Bacanora and its shareholders. Accordingly, the Company is currently taking advice and has reserved its rights in respect of this default.
Bacanora continues to focus on building an international lithium company and, as part of this strategy, developing the Sonora Lithium Project in Mexico ("Sonora") into a leading supplier of high value lithium products to fast-growing industries such as electric vehicles and energy storage. Management is evaluating different funding options with a view to entering the construction phase for Sonora within H1 2018. Sonora was assigned a Net Present Value of US$1.25 billion and an Internal Rate of Return of 26% in a recently completed Feasibility Study which also confirmed that the project occupies a position on the industry cost curve similar to the low-cost brine producers in South America (see announcement of 13 December 2017).
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