Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update published today by Bacanora Lithium (AIM: BCN) ('Bacanora') on the Strategic Investment by leading global lithium company Ganfeng Lithium Co., Ltd. ('Ganfeng' or 'GFL').
As announced on 28 June 2019, the signed Investment Agreement and Offtake Agreement, which together make up the Strategic Investment, were submitted to the relevant authorities in China for approval. Completion of the last of the relevant approvals has now been obtained and Bacanora has now received the GBP21,963,740 of funds from Ganfeng in exchange for a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% JV investment directly in the Sonora Lithium Project ('Sonora'). It is expected that the 57,600,364 shares in Bacanora will be admitted to trading on or around 18 October 2019.
Cadence Minerals - Holdings in BCN, Mexalit and Megalit
Bacanora is a lithium exploration and development company. Cadence holds 30% of Mexalit and Megalit joint venture companies and approximately 0.5% of Bacanora's equity. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico.
Update on Ganfeng and current activities at Sonora.
Ganfeng has recently announced its intention to proactively advance the development of Bacanora's Sonora lithium clay project during the second half of 2019 with a number of initiatives. These will support Ganfeng's target of 200,000 tonnes per annum lithium carbonate equivalent production capacity by 2025, although final capacity expansion will be based on changes in, and assessment of, future market demand for lithium products.
The Bacanora project team in Mexico continues to progress the final design work for the mine, concentrator and kiln sections of the processing plant. The Ganfeng technical team has initiated work on the hydrometallurgical circuit and is reviewing sourcing key sections of the lithium production equipment from current equipment suppliers in China.
Changes to Board of Directors
Mr. Wang Xiaoshen, the Vice President of Ganfeng and the vice-chairman of its board of directors, is today appointed a director of Bacanora Lithium plc.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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