Bacanora Minerals talk 2015 FY results

PUBLISHED: 29 Oct 2015 @ 15:16 | Comments (0) |

Financial Results for the Year Ended 30 June 2015

Bacanora, the London and Canadian listed (AIM:BCN) (TSX-V:BCN) lithium and borates company focussed on Mexico, has announced its final audited results for the 12 months ended 30 June 2015. These results were prepared in line with International Financial Reporting Standards, and, unless otherwise specified, amounts are expressed in Canadian dollars. Condensed consolidated financial statements are included further below.

Highlights:

FY 2015 Events

· Admission to AIM and associated £4.75 million fundraising to advance transition into the development phase with fully funded pre-feasibility studies ongoing at the Sonora Lithium Project in Mexico
· Mineral Resource Estimate for Sonora Lithium Project in Mexico:

o Indicated portion of the MRE is 1.14 million tonnes lithium carbonate equivalent contained in 95 Mt of clay, at lithium grade of 2,200 ppm
o Inferred portion of the MRE is 6.3 Mt LCE contained in 500 Mt of clay at a Li grade of 2,300 ppm
o Multiple opportunities to expand the resource

· Commencement of Pre-feasibility Study Technical Report that will be prepared in accordance with National Instrument 43-101
· – Standards of Disclosure for Mineral Projects for the Sonora Lithium Project including an infill drilling programme, mine design by IMC (Tucson), metallurgical testwork by SGS Lakefield (Canada) and lithium plant and process design work by Ausenco Engineers (Australia)
· Ongoing testwork underway on
· Compelling market fundamentals for both lithium and borate due to their roles in innovative industries continue to support ongoing development
· Appointment of CEO with proven track record of advancing projects up the development curve

Financial Highlights:

· $9,991,037 million held in cash and in trust at year end
· $14,478,230 million invested in exploration assets and in the Company’s pilot plant

Post Period End Highlights:

· Advancement of pre-feasibility activities at the Sonora Lithium Project undertaken include:

o Working with key industry consultants to design a scalable lithium plant and mining operation, with the potential to produce up to 50,000 tonnes per annum of lithium carbonate
o Commencement and completion subsequent to period end of 4,000 metre drilling programme on Fleur and El Sauz concessions to increase further the MRE
o Appointment of Project Manager with prior lithium experience to manage the PFS

· Signed a conditional long-term lithium hydroxide supply agreement

Peter Secker, CEO of Bacanora, said, “We continue to progress the pre-feasibility study for the Sonora Lithium Project, which is due to be completed in calendar Q1 2016. Bacanora continues its strategy towards becoming a supplier in the rapidly growing lithium market. Unlike a number of other commodities, the supply / demand dynamics for lithium are highly favourable as a result of the vital role it plays in high growth industries such as mobile communications, electric vehicles and energy storage. Set against this supportive backdrop and subject to the results of the PFS, we expect to immediately embark on a Bankable Feasibility study in tandem with progressing our ongoing discussions with potential offtake partners, as we continue to focus on bringing the Sonora Lithium Project into production in order to generate substantial value for our shareholders.”

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