RE: RNS5 Feb 2021 10:31
5 February 2021
Bacanora Lithium plc
("Bacanora" or the "Company")
Further Ganfeng investment
Bacanora Lithium plc (AIM: BCN), a lithium development company, announces that the Board of directors of its cornerstone investor and offtake partner, Ganfeng Lithium Co., Ltd ("Ganfeng"), has today approved a board resolution to exercise its pre-emptive right and to increase its holding in the Company. Ganfeng will subscribe for a total of 53,333,333 new Ordinary Shares at the Placing Price of 45p per share, representing gross proceeds of approximately US$31 million. Completion of this investment from Ganfeng is conditional upon obtaining certain approvals and consents from authorities in the People's Republic of China. On Completion of their investment, the Company will have 384,144,901 shares in issue and Ganfeng will have an ownership level of 28.88%.
Peter Secker, CEO of Bacanora said:
"We are delighted that our cornerstone partner, Ganfeng, has shown yet more commitment to Bacanora and the Sonora Lithium Project, located in Mexico, retaining its position as the Company's largest shareholder. This additional funding further solidifies our financial position as we head towards the start of construction. We look forward to providing more updates in the coming period on the final parts of the engineering design and the start of site work preparation."