25 Jan 2016 07:00
25 January 2016
Bacanora Minerals Ltd
("Bacanora" or the "Company")
Consultancy Agreement and Option Grant
Bacanora, the London and Canadian listed (AIM: BCN and TSX-V: BCN) lithium and borates company focussed on Mexico, is pleased to announce it is entering into a consultancy agreement in respect of the liaison with and procurement of potential purchasers for the Company's lithium products. The agreement is with a private company that is controlled by Mark Hohnen, who is a proposed nominee for election to the Board of Bacanora and whose approval as a director remains subject to final regulatory approval.
The consultancy agreement is for a period of eighteen (18) months, subject to early termination by either party upon one (1) month notice. Compensation payable under the agreement consists of a quarterly fee in the amount of £57,000 exclusive of Value Added Tax where applicable, such fee being payable quarterly in arrears and being comprised of the following components: £36,000 per quarter - fee for services; £15,000 per quarter - rental allowance; and £6,000 per quarter - travel allowance. Expenditures incurred in connection with services provided thereunder shall also be eligible for reimbursement. It should be noted that the services to be provided under this agreement are expected to be provided principally by Mr. Hohnen and are of such a nature that they extend beyond the standard expectations and commitments that will apply (once regulatory approval is obtained) in connection with his role as a director of the Company.
In addition to the foregoing, an aggregate of 1,000,000 options to acquire common shares in the capital of the Company have been granted to the foregoing private company, such options being exercisable at a price of £0.77 (approximately $1.58) per share for a period of twenty-four (24) months, subject to applicable securities law hold periods and the earlier termination of the consultancy agreement.
**ENDS**
For further information, please contact:
Bacanora Minerals Ltd. | Peter Secker, CEO | info@bacanoraminerals.com |
Cairn Financial Advisers LLP, Nomad | Sandy Jamieson / Liam Murray
| +44 (0) 20 7148 7900 |
HD Capital Partners Ltd, Broker
| Philip Haydn-Slater / Paul Dudley
| +44 (0) 20 3551 4870 |
St Brides Partners, Financial PR Adviser | Frank Buhagiar / Elisabeth Cowell | +44 (0) 20 7236 1177 |
ABOUT BACANORA:
Bacanora is a Canadian and London listed minerals explorer (TSX-V: BCN and AIM: BCN). The Company explores and develops industrial mineral projects, with a primary focus on lithium and borates. The Company's operations are based in Hermosillo in northern Mexico and it currently has two significant projects under development in the state of Sonora. The two 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 NI 43-101) of 5.0 Mt LCE contained in 364 Mt of clay at a Li grade of 2,600 ppm and an Inferred Mineral Resource of 3.9 Mt LCE contained in 355 Mt of clay at a Li grade of 2,000 ppm
· The Magdalena Borate Project, covering 16,503 hectares 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.