ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

BCN Bacanora Lithium Plc

67.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Bacanora Lithium Plc LSE:BCN London Ordinary Share GB00BD20C246 ORDS 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 67.00 67.00 67.50 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Bacanora Minerals Ltd Acquires 50% Interest in German Lithium Asset (3649X)

21/02/2017 7:00am

UK Regulatory


Bacanora Lithium (LSE:BCN)
Historical Stock Chart


From Mar 2019 to Mar 2024

Click Here for more Bacanora Lithium Charts.

TIDMBCN

RNS Number : 3649X

Bacanora Minerals Ltd

21 February 2017

Bacanora Minerals Ltd

('Bacanora' or the 'Company')

Acquisition of 50% Interest in Strategic German Lithium Asset

Bacanora, the London and Canadian listed (AIM: BCN, TSXV: BCN) resource developer focused on building an international lithium company, is pleased to announce that it has entered into a definitive agreement (dated 17 February 2017) to acquire a 50% interest in, and joint operational control of, the Zinnwald Lithium Project ('Zinnwald' or 'the Project') in southern Saxony, Germany from SolarWorld AG ('SolarWorld'), the largest solar panel producer in Europe. This is in line with management's vision to become a global lithium operator focused on projects with significant value accretion potential and defined markets at both the product and geographic levels.

Highlights:

-- Zinnwald, which reportedly produced lithium carbonate in the 1950s, is located in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten and lithium

-- The Project benefits from excellent access to the rapidly growing market for lithium in Germany which is being driven by the automotive, renewable energy storage and chemicals industries

-- Geographical location of the Project provides potential access to new markets, which diversifies risk and complements potential target markets for the Company's Sonora project in Mexico where a Feasibility Study is on track for completion in 2017

-- Bacanora will earn 50% of the project in return for a cash consideration of EUR5 million and an undertaking to contribute EUR5 million towards the cost of completing a Feasibility Study on the Project, which is anticipated to take approximately 18-24 months to complete

-- Access to the significant lithium technical expertise developed by SolarWorld over the past ten years in the renewable energy industry

-- Option to acquire the outstanding 50% held by SolarWorld within a 24 month period for EUR30 million

Bacanora Chairman Mark Hohnen stated, "Zinnwald is a strategic asset located in close proximity to a thriving market for lithium and energy products. The Project fits with both our corporate strategy to develop and operate integrated lithium projects to produce high value lithium products, and also the commercial overlay which drives our acquisition strategy."

"Sonora continues to sit at the heart of our portfolio and having produced battery grade lithium carbonate from our 100% owned pilot plant ahead of finalising off-take agreements in Asia, we are committed to bringing this into production. However, Zinnwald provides us with exposure to an exciting new geographic market and adds hard rock mineralisation to our portfolio. We believe that with an ownership structure that is accretive to Bacanora, Zinnwald will further facilitate our ambition of becoming an independent global lithium operating group."

Zinnwald

The Zinnwald Lithium Project is located in southeast Germany, some 35 km from Dresden and adjacent to the border of the Czech Republic and within 5km of the town of Altenberg and 50 km of the town of Freiberg.

The Project is located in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten and lithium at different times over the past 300 years. The strategic location of the project allows immediate access to the German automotive and downstream lithium chemical industries.

The Zinnwald Project and leases are held by Solarworld Solicium GmbH, a 100% owned subsidiary of SolarWorld AG, the largest solar panel producer in Europe. The Project has a historical resource estimate dated 1(st) October 2014 which was reported in accordance with the PERC Code[1], comprised of Measured, Indicated and Inferred Resources.[2] A Qualified Person (under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ('NI 43-101')) has not done sufficient work to confirm the historical estimate; hence Bacanora is not treating the historical estimate as current Mineral Resources or Mineral Reserves. However, Bacanora believes that the historical work at Zinnwald and the geological context of the deposit support the case for investing in further work to investigate the Mineral Resource and its potential for economic extraction.

 
 Resource Category    Tonnes*   Li Grade      Contained 
                       (000)      (ppm)     LCE** (Tonnes) 
-------------------  --------  ---------  ---------------- 
 Measured              10,283      3,661           200,277 
-------------------  --------  ---------  ---------------- 
 Indicated             16,287      3,594           311,408 
-------------------  --------  ---------  ---------------- 
 Inferred               9,867      3,705           194,484 
-------------------  --------  ---------  ---------------- 
 

Notes:

* Li cut-off 2,500pm and >2 metres vertical thickness.

** LCE is the industry standard terminology for, and is equivalent to, Li(2) CO(3) . 1 ppm Li metal is equivalent to 5.32 ppm LCE / Li(2) CO(3) . 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.

SRK Consulting (UK) Ltd has briefly reviewed the historical work at Zinnwald and adjacent properties and is working with the Company to test the historical estimate and develop a future resource. It is expected that additional infill drilling and an updated geological and grade model will allow current Mineral Resources to be reported, following which a new technical report is expected to be prepared in accordance with NI 43-101 and AIM Note for Mining and Oil & Gas Companies standards.

In 2014, SolarWorld AG also completed a technical report on the Project, prepared in accordance with the PERC Code.[3] Bacanora has reviewed the foregoing report (a copy of which has been published by SolarWorld AG on its website) and relied upon it in ascribing its internal valuations for the Project and the negotiation of the transaction terms.

Bacanora's investment into the Zinnwald project gives the potential to provide entry into the fast-growing European lithium market whereas the Sonora project continues to focus on off-take markets in Asia. In addition, the location of Zinnwald, adjacent to existing downstream German lithium chemical infrastructure and automotive manufacturing capacity, has the potential to allow the Zinnwald Project to focus on the production of higher value, downstream lithium products, which typically command premium pricing as compared to lithium carbonate products.

Martin Pittuck of SRK Consulting (UK) Limited is the Qualified Person pursuant to NI 43-101 and the AIM Note for Mining and Oil & Gas Companies who has reviewed and approved the technical contents of this announcement.

For further information, please contact:

 
 Bacanora Minerals        Peter Secker, CEO              info@bacanoraminerals.com 
  Ltd. 
-----------------------  -----------------------------  -------------------------- 
 Cairn Financial 
  Advisers LLP,           Sandy Jamieson/Liam                           +44 (0) 20 
  Nomad                    Murray                                        7213 0880 
-----------------------  -----------------------------  -------------------------- 
 Numis Securities 
  Ltd,                    John Prior/James Black/Paul                   +44 (0) 20 
  Broker                   Gillam                                        7260 1000 
-----------------------  -----------------------------  -------------------------- 
 St Brides Partners,      Frank Buhagiar/ Elisabeth                     +44 (0) 20 
  Financial PR Adviser     Cowell                                        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 the Sonora Lithium Project. 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 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 4.5 million tonnes (LCE) and 2.7 million tonnes Inferred.[4] A PFS completed in Q1 2016[5] demonstrated the economics associated with becoming a 35,000 tpa lithium carbonate and 50,000 tpa SOP producer in Mexico.

[1] PERC Code means the Pan European Code for Reporting of Exploration Results, Mineral Resources and Reserves prepared by the Pan-European Reserves and Resources Reporting Committee, as amended.

[2] The foregoing estimates were set forth in a report dated October 1, 2014, prepared by G.E.O.S. Ingenieurgesellschaft mbH and Technical University Bergakademie Freiberg on behalf of SolarWorld Solicium GmbH and entitled, "Zinnwald Lithium Project, Report According to PERC Standard".

[3] See report dated October 1, 2014, prepared by G.E.O.S. Ingenieurgesellschaft mbH and Technical University Bergakademie Freiberg on behalf of SolarWorld Solicium GmbH and entitled, "Zinnwald Lithium Project, Report According to PERC Standard".

[4] See Amended Mineral Resource Estimate for the Sonora Lithium Project, Mexico, April 2016. The lead author of the amended report is Mr. Martin Pittuck (MSc., C.Eng., FGS, MIMMM) of SRK Consulting (UK) Limited ('SRK'). A copy of this report is available under Bacanora's corporate profile at www.sedar.com.

[5] See Technical Report on the Pre-Feasibility Study for the Sonora Lithium Project, Mexico, 15 April 2016. The authors of the PFS are Ausenco Limited, SRK and Independent Mining Consultants Inc. A copy of this report is available under Bacanora's corporate profile at www.sedar.com.

The company news service from the London Stock Exchange

END

ACQQBLFLDLFZBBL

(END) Dow Jones Newswires

February 21, 2017 02:00 ET (07:00 GMT)

1 Year Bacanora Lithium Chart

1 Year Bacanora Lithium Chart

1 Month Bacanora Lithium Chart

1 Month Bacanora Lithium Chart

Your Recent History

Delayed Upgrade Clock