Bacanora Minerals Ltd Board Changes and Corporate Update (0050Q)

TIDMBCN

RNS Number : 0050Q

Bacanora Minerals Ltd

24 November 2016

Bacanora Minerals Ltd

('Bacanora' or the 'Company')

Board Changes and Corporate Update

The Board of Bacanora ('Bacanora' or 'the Company'), the Canadian and London listed (TSX-V: BCN and AIM: BCN) company focused on developing the Sonora Project ('Sonora' or 'the Project') in Mexico, is pleased to announce changes to the composition of the Board. These are in line with the Company's strategy to build a robust and independent Board with a complementary skill set to effectively facilitate the development of Sonora into a world class lithium carbonate operation.

Changes to Board of Directors

The Company is pleased to announce that Mark Hohnen, Non-Executive Director of the Company, has assumed the role of Chairman with immediate effect. James Leahy, interim Non-Executive Chairman, will resume his role as Non-Executive Director of the Company.

Mr. Hohnen has a long track record of creating value through the development of resource projects, as demonstrated during his time as Director of Kalahari Minerals and Extract Resources and in his current role as Director of Swakop Uranium, which is developing the world's second largest uranium mine and the largest mine development in southern Africa.

Additionally, Bacanora announces the appointment of Ray Hodgkinson as a Canadian based Non-Executive Director of the Company, replacing Shane Shircliff who has stepped down from this role to pursue other business interests. Mr. Shircliff served as CEO of Bacanora from May 2013 to May 2015 and as a director from February 2014 to present. Ray Hodgkinson resides in Canada and has both substantial public company and natural resource experience. He is very familiar with Bacanora having been on its Board between 2006 and 2013, prior to its AIM listing.

Mr. Raymond John Hodgkinson (aged 60) has previously worked as an engineering consultant to Striker Exploration Corp., Exoro Energy Inc. and Ripper Oil & Gas Inc. He has been an Independent Director of Westcore Energy Ltd. since March 2007 and a Director of Troy Energy Corp. since September 2009. He served as Chief Operating Officer of Aztek Energy Ltd. from June 1, 2006 to January 2010. He served as a Director of Tembo Gold Corp (formerly Lakota Resources Inc.) from October 2009 to July 15, 2011. He has 30 years of experience in the natural resources sector and is a Member of the Association of Professional Engineers and Geoscientists of Alberta. Mr. Hodgkinson received Bachelor of Science Degree in Engineering from University of Calgary in June 1977.

Set out below are details of Mr. Hodgkinson's current directorships and those that he has held within the last five years.

 
                Current Directorships  Past Directorships (past 5 years) 
                Troy Energy Corp.      Bacanora Minerals Ltd. 
                Westcore Energy Ltd.   Tembo Gold Corp. 
                                       Aztek Energy Ltd. 
 

Mr. Hodgkinson has an interest in 756,050 common shares in Bacanora. There is no further information on Mr. Hodgkinson, which is required to be disclosed under Schedule Two, paragraph (g) of the AIM Rules for Companies.

Corporate Update

Bacanora and Rare Earth Minerals plc (AIM/ISDX: REM; OTC REMMY), together advise that the financing condition in the conditional lithium hydroxide supply agreement ("the Agreement") previously announced on 28 August 2015 has not been met under the terms of the Agreement. We advise further that we have had extensive discussions with the customer as to the feasiblity of securing project specific financing pursuant to the terms and conditions of the Agreement, that those discussions have now concluded, and therefore we are discontinuing further efforts to secure project specific financing pursuant to the Agreement.

It remains Bacanora's strategy to focus on the production of lithium carbonate to service the rapidly growing Asian and European markets for electric vehicles and energy storage. Sales of lithium carbonate represent some 75% of the current world market of lithium products.

During the year Bacanora has rapidly advanced the Sonora Lithium Project, the pre-feasibility study which was published in March and showed positive economics returns, from a development plan that involved ramping up production to 35 Kt of LCE over 2 years. In addition, Bacanora has demonstrated that it can produce battery-grade lithium carbonate from the ore at the Sonora Lithium Project and has distributed samples of its product for preliminary appraisal and testing by potential end-users.

The Sonora Lithium Project consists of ten mining concession areas covering approximately 100 thousand hectares in the northeast of Sonora State. It has an Indicated Mineral Resource (in accordance with NI 43-101) of 4.5 million tonnes (LCE) and 2.7 million tonnes (LCE) within the Inferred category.

Bacanora continues to focus on its core business which is the completion of the Sonora lithium carbonate Feasibility Study ("FS") targeted for completion at the end of Q1, 2017 and the advancement of discussions with potential lithium carbonate customers.

New Chairman Mark Hohnen said, "Sonora is a compelling lithium asset poised to capitalise on a growing market for lithium carbonate and I am pleased to take on this role at this exciting time for Bacanora. I would like to thank James Leahy for his commitment to the Company following the sad passing of Colin Orr-Ewing. I also take this opportunity to welcome back Ray and look forward to benefitting from his significant experience of the Canadian markets. In addition, on behalf of the entire Board I would like to thank Shane Shircliff for his years of dedication to Bacanora throughout its formative stages and to offer him sincere best wishes in his future endeavours. As recent appointments have shown, we are dedicated to creating a strong, independent Board which has the ability to deliver production at Sonora, so that we may capitalise on the robust economics demonstrated from a 35,000 tonne per annum lithium carbonate operation for the benefit of our shareholders."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

 
 Bacanora Minerals      Peter Secker, CEO            [e-mail] 
  Ltd. 
---------------------  ---------------------------  -------------------------- 
 Cairn Financial 
  Advisers LLP,         Sandy Jamieson/Liam                         +44 (0) 20 
  Nomad                  Murray                                      7213 0880 
---------------------  ---------------------------  -------------------------- 
 Numis Securities 
  Ltd,                  John Prior/James                            +44 (0) 20 
  Broker                 Black/Paul Gillam                           7260 1000 
---------------------  ---------------------------  -------------------------- 
 St Brides Partners, 
  Financial PR          Frank Buhagiar/ Elisabeth                   +44 (0) 20 
  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 lithium. 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 4.5 million tonnes (lithium carbonate equivalent) and 2.7 million tonnes Inferred. A Pre-Feasibility Study completed in Q1 2016 demonstrated the positive economics associated with becoming a 35,000 tpa lithium carbonate and 50,000 tpa SOP producer in Mexico. The Company is led by a team with lithium expertise which have proven mine development, construction and operational experience.

This information is provided by RNS

The company news service from the London Stock Exchange

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November 24, 2016 02:01 ET (07:01 GMT)