BCN.L Regulatory News (BCN)

Bacanora Minerals Ltd.

("Bacanora" or the "Company")

Sonora Lithium Project - Offtaker Update

Bacanora, the Canadian and London listed company (TSX-V: BCN and AIM: BCN) that is developing the Sonora Lithium Project ("Sonora") in northern Mexico, advises that it is continuing to develop a number of strategic relationships with international lithium trading companies and mining companies for the sale of its lithium products, in addition to the conditional supply agreement previously announced.

The recent £8.8 million private placement undertaken by the Company significantly boosted the Company's cash reserves and ensures that more than sufficient funding is available to upgrade its pilot plant in order to allow for continuous metallurgical operations, which are scheduled to commence in January 2016. The treatment of bulk lithium samples from the Sonora mine at the Hermosillo pilot plant will produce off-take samples for potential end users in Europe, Asia and North America.

As part of this strategy, the Company has already completed a number of detailed site and plant visits with potential off-take partners to facilitate and expedite lithium sample optimisation and is in the process of negotiating a number of Letters of Intent, Memoranda of Understanding, draft Agreements and Non-Disclosure Agreements with these potential partners.

Peter Secker, Bacanora's CEO, commented, "The various discussions and ongoing negotiations referenced in this announcement indicate that the Sonora Lithium Project is now receiving a significant amount of interest from major trading houses in Asia and Europe for supply of lithium products. Discussions and negotiations with lithium off-takers and major mining companies with a lithium focus are expected to continue over the next six months, subsequent to the planned release of the NI-43-101 Pre-Feasibility Study in calendar Q1, 2016."

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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 National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")) of 5.0 Mt LCE1 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; and 

· 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.

1LCE = lithium carbonate (Li2CO3) equivalent; determined by multiplying Li value in percent by 5.324 to get an equivalent Li2CO3 value in per cent. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.