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Sonora represents a vast ocean. Remember, the worlds premier lithium miner; Albermarle, extracts lithium from hard rock mining in Australia; today’s share price: $158.45. This joint venture between Ganfeng and Bacanora can significantly reduce the cost of production; and Sonora can become a worldwide lithium resource.
Therefore, BCN shares should increase exponentially through to production and beyond.
The reason why Ganfeng will not stage an aggressive takeover of BCN. It’s useful for Sonora to be a multi-national enterprise, and not appear to be a Chinese takeover of Mexican natural resources.
Conditional on approvals from the Chinese Communist Party of course.
So Ganfeng now owns 50% of BCN holding company, Sonora Lithium?
Bacanora Lithium PLC (LON:BCN) said it has signed a new joint venture agreement with its cornerstone investor and offtake partner, Ganfeng Lithium Co Ltd.
Ganfeng recently exercised its option to take its stake in the holding company which owns Bacanora’s Sonoara lithium project in Mexico from 22.5% to 50%.
Completion of the joint venture remains conditional upon certain approvals and consents from authorities in the People's Republic of China.
Once Ganfeng has received approval from the relevant authorities in China and the holding company, SLL, has received £21.9mln of funds in payment from Ganfeng, completion will take place.
Bacanora will remain as the operator of the project, while Ganfeng will be responsible for leading the engineering, procurement and construction activities.
Ganfeng is continuing to integrate its flow sheet for the production of battery grade lithium into the final engineering design and remains on schedule to deliver its final engineering packages to Bacanora during the first half of this year.
"We are pleased that Ganfeng and Bacanora have agreed terms on the updated joint venture agreements and look forward to completion of Ganfeng's investment to own 50% of the Sonora Lithium project,” said Bacanora chief executive Peter Secker in a statement.
“Their investment further de-risks the project and reduces the equity demands on Bacanora's own shareholders to fund Phase 1 of the project. The Sonora lithium project is now well placed to be in production in 2023 and delivering battery-grade lithium products into the fast-growing energy storage market."
I remember having these discussions on the Greatland Gold board, after it had been taken over by Newmont in 2019. The share price is now 3000% higher, than it was then. I see in the RNS, Ganfeng will likely exercise their right to more shares at 45p, to own 29% of the company. Not sure this makes any difference to what the share price might be one year from now.
I should sell up then?
Secker said BCN is fully funded, and the board will now focus on improving shareholder value. It would not make sense for Ganfeng to dilute further. It would make more sense for Ganfeng to buy BCN out. With expected profits for 2020 at 1.07 billion yuan, or £192,813,019, a few million here or there is meaningless.
Anyone know the difference between ‘transfer to’ and ‘transfer from’ regarding BCN board members share transfers?
Secker: 336,250
Ainsworth: 3,012,547
Hodgkinson: 763,550
Taken from the LSE website regarding Peter Secker’s ownership of shares in BCN:
02-Oct-20 Transfer From Peter Secker 0.00. 336,250
03-Feb-21 11:38:13 47.7399 6,339 Sell* 3,026
This is my trade made with Hargreaves and Lansdown, wrongly marking as a ‘Sell of 6339’ shares. They were bought! How does LSE get this wrong so frequently?
I had 100,000 shares of Greatland Gold. Sold at approximately 90 pence as I was tired of the price flux. Now selling at 28p this prospective gold mining company has seen an increase in share value of 3011%. I am not missing out twice. Now own 10,000 shares.
The market isn’t totally blind, but it is very myopic.
My Grandfather is a long retired Professor of Physics, and it is perhaps because of him that I am invested here in IQE. For it is the joy of investing in what one doesn’t fully understand; as only those with a degree in quantum physics can only truly understand; yet with a sneaky suspicion that you have stuck gold.
As I stand in line to receive my Pfizer vaccine, which has been stored at -70, I wonder when British regulators will get there act together and authorise our much more practice Oxford Vaccine. It seems the Russians will get it before we do.
As I stand in line to receive my Pfizer Biontec vaccine, thawed out; as it has been from -70 Degrees Faranheit, and deliverable within three days, my thoughts are these. When will British regulators pull their finger out and authorise our own, British made vaccine?
I like the cut of this board's jib.
So, rather than watch a 50% loss on share price value I have joined the Barrick Gold band-waggon, to recover losses, and will wait for Bac share price to stabilise. Assuming news from Ganfeng end of month? On a Friday?
Yes, this was my thought. When will Newcrest give us thier full assay results? Mid August?