BCN.L Regulatory News (BCN)

NEWS RELEASE

BACANORA ANNOUNCES PROPOSED RE-DOMICILE TO THE UK

BACANORA MINERALS LTD. ("Bacanora" or the "Company") (AIM: BCN and TSX-V:BCN), the AIM and TSX Venture Exchange listed lithium and borates company focussed on Mexico, announces that it plans to re-domicile its governing corporate jurisdiction from Canada to the UK. The Board of Bacanora has made its decision to re-domicile in consideration of the success of the Company's AIM listing and the positive reception from UK investors, as demonstrated by the addition of two major institutions to its shareholder register in the last eight months. The decision also reflects the fact that the Company's senior management team is increasingly based in the UK. The Board anticipates that the re-domicile will result in significant cost and administrative savings for the Company and its subsidiaries ("the Group").

To facilitate the re-domicile, all existing common shares in Bacanora will be exchanged for ordinary shares in Bacanora Lithium Plc ("Bacanora UK"), a company that has been established in the UK to become the new holding company for the Group by way of a plan of arrangement in Canada (the "Transaction"). The share capital of Bacanora UK will be identical to the existing share capital of Bacanora and the rights attaching to the new shares in Bacanora UK will be substantially the same as for the current Bacanora shares. In all other respects, the Group will remain unchanged as a result of the Transaction.

The Transaction will be subject to shareholder and Canadian court approval. The Company will shortly send to shareholders a circular setting out full details of the Transaction and containing notice of a general and special meeting to consider and, if thought fit, approve the Transaction. Prior to the Transaction becoming effective, it is proposed that Bacanora UK will apply for its ordinary shares to be admitted to trading on AIM and the admission of Bacanora shares to AIM and Bacanora Canada will apply for de-listing from the TSX Venture Exchange once the Transaction has become effective.

For further information, please contact:

ABOUT BACANORA:

Bacanora is a Canadian and London listed minerals explorer (TSX-V: BCN and AIM: BCN). The Company explores and is developing industrial mineral projects, with a primary focus on their lithium project. The Company's operations are based in Hermosillo in northern Mexico. The main assets of Bacanora are: 

· The Sonora Lithium Project, which consists of ten mining concession areas covering approximately 100 thousand hectares in the northeast of Sonora State. The Company, through drilling and exploration work to date, has established an Indicated Mineral Resource (in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")) of 4.46 Mt LCE1 contained in 259 Mt of clay at a Li grade of 3,200 ppm and an Inferred Mineral Resource of 2.74 Mt LCE contained in 160 Mt of clay at a Li grade of 3,200 ppm.

· The Magdalena Borate Project in Sonora state, Mexico, where the Company's main borate zone, El Cajon, has an Indicated Resource (in accordance with NI 43-101) of 1.17 mt of B2O3, at an eight per cent. cut-off grade. The Company has completed a number of measures to determine the geological and commercial potential of the project and is undertaking a pre-feasibility exercise to determine the economic benefit of developing the mine and constructing a processing plant on site in order to become a supplier of boric acid.