Bacanora Lithium Share Discussion Threads

[e-boffin] 28/8/2015 14:36

I see the Americans have woken up and joined the party.

[lak342] 28/8/2015 13:08

For those interested in mining companies check this Interview with Charles Gibson: Head of Mining at Edison Research

[adobbing] 28/8/2015 12:46

@sdmoores: On the basis of this Bacanora / Tesla deal, a second Gigafactory appears in the pipeline #lithium

@kirillklip: Second Gigafactory?! @sdmoores: #Bacanora #Tesla #Gigafactory deal is for min 35k max 50k > double what the Gigafactory will need. #lithium

@sdmoores: @kirillklip to clarify, no volumes been announced but Bacanora's bullish output suggest Tesla is loading up beyond Gigafactory capacity


Who will be the next customer for BCN / REM in the scramble to secure supply in advance of demand?

[apfindley] 28/8/2015 11:25

Nice rise for REM and BacBut Money going back into GWMO now

[jemjem] 28/8/2015 09:23

No problem HP. My alert came through at 4.38 a.m. Didn't sleep much after that trying to think it through.
Will be interesting to see the US reaction when the news breaks out there. Bloomberg love stories on Tesla so expect something there!

[hutch_pod] 28/8/2015 08:23

Thanks for posting above JemJem. When i read it around 5.30am, i struggled to digest it for a bit!!

[chinese investor] 28/8/2015 08:12

Go Horsey !

[georgeski] 28/8/2015 08:11

Well done Leni :)

[steeplejack] 28/8/2015 07:48

Lenigas, commented:"The selection of the Sonora Lithium Project as one of the lithium suppliers to the Tesla Gigafactory is a landmark transaction that will support the development and commercialisation of the Sonora Lithium Project. This key supply agreement with Tesla will hopefully be the first of a number of potential lithium off-take partners for the Sonora Lithium Project as we move towards the next stages of project development."

[adobbing] 28/8/2015 07:29

@DavidLenigas: This morning's REM news on Tesla is a massive Coup and other suppliers may well scratch their heads when they get around to finding out. :)

[adobbing] 28/8/2015 07:23

@DavidLenigas: Rare Earth Minerals signs landmark deal with Elon Musk's Tesla Motors Inc for lithium supply. Change the world.

[adobbing] 28/8/2015 07:20

CALGARY, ALBERTA--(Marketwired - Aug 27, 2015) - BACANORA MINERALS LTD. ("Bacanora" or the "Company") (TSX VENTURE:BCN)(BCN.L) and Rare Earth Minerals plc ("REM") (REM.L), the owners of the Sonora Lithium Project(1) in Northern Mexico (Bacanora and REM are collectively referred to as the "Sonora Lithium Project Partners"), have finalised a conditional long-term lithium hydroxide supply agreement with Tesla Motors, Inc. ("Tesla"), the maker of electric vehicles and energy storage solutions (the "Supply Agreement").

The Sonora Lithium Project Partners are working to develop a mineral-rich, lithium-bearing clay deposit into a planned low-cost, sustainable and environmentally conscious mining operation. It is estimated that the mine and processing facility will have an initial production capacity of approximately 35,000 tonnes of lithium compounds, with the scaling potential of up to 50,000 tonnes per annum. To achieve this, the Sonora Lithium Project Partners will need to raise finances to design and construct a mine and processing facility. It is currently anticipated that lithium hydroxide and lithium carbonate would be among the materials produced by the mine. Lithium hydroxide is a key feedstock material in the manufacture of certain kinds of lithium-ion battery cells.

On the condition that, over the next two years, the Sonora Lithium Project reaches certain performance milestones and successfully passes product specification qualifications, Tesla - or its authorized purchasers - will buy lithium hydroxide to feed the manufacturing of batteries at Tesla's Gigafactory in Nevada. One of the key milestones will be the confirmation that the Sonora Lithium Project will be able to supply lithium hydroxide in accordance with volumes and timeframes to be established by Tesla. The Supply Agreement has an initial five year term commencing from the date of the first order by Tesla, with an option to extend for a further five years.

During the initial five years, and subject to certain terms and conditions in relation to project execution, product quality, pricing and timing of delivery, Tesla will purchase agreed minimum tonnages, with estimated forecasted maximum deliveries to be determined following delivery of future production orders from Tesla. Tesla will purchase minimum quantities in accordance with an agreed upon pricing formula, below current market pricing, with actual prices and volumes that can only be finalized during the development phase in due course. The forecast tonnages and delivery dates are structured to coincide with Tesla's forecasted Gigafactory production. This agreement will form a portion of Tesla's anticipated lithium-based feedstock needs; the remainder of which is expected to come from other lithium peers.

To meet both Tesla's minimum and forecasted tonnages and timelines and any other potential market demands, the Sonora Lithium Project Partners will need to design and construct a suitable mining and processing operation. This will require the Sonora Lithium Project Partners to secure significant financing through debt and/or equity. Tesla has the right to participate in any such financing or other capital transactions. Bacanora and REM will be pursuing next steps to raise finances in order to achieve this goal. There can be no assurance that the conditions to supply product under the Supply Agreement will be met or that the agreement will prove to be economic.

Development work to be used for the pre-feasibility study ("PFS") for the Sonora Lithium Project is currently being carried out. The PFS, alongside additional studies, will establish a revised estimate of capital and operating costs, taking into account the new product mix that will be required to service Tesla's anticipated demands plus those of any additional potential customers.

Colin Orr-Ewing, Chairman of Bacanora, commented: "This Supply Agreement with Tesla represents a vital and monumental step forwards in the commercialization of the large lithium resources that the Company holds, together with its partner REM, in Northern Mexico. We anticipate this contract to rapidly accelerate the development of the Sonora Lithium Project, which we expect will prove to be invaluable in an increasingly lithium hungry world."

[adobbing] 28/8/2015 07:14

@DavidLenigas: Very significant news out on REM regarding Tesla lithium supply deal. Note sentence about Tesla's ability to be involved in funding!

@DavidLenigas: This REM/BCN announcement re: Tesla lithium supply contract just put the Sonora Lithium Project on all the maps.

@DavidLenigas: I remember saying a long time ago after Rockwood CEO said they would be the supplier of lithium to Tesla that it would be over my dead body!

[jemjem] 28/8/2015 05:00

Bacanora supply agreement with Tesla. :-)))

[e-boffin] 27/8/2015 13:21

I'm pretty excited about the potential of this share. I like to buy into something which is "world class" and this lithium deposit fits that description.

However, I must be on my own as there has only been 4,354 shares traded today. That is like dead.

[adobbing] 24/8/2015 19:04

Bacanora Minerals Ltd TSXV:BCN +12.9%

[andrbea] 19/8/2015 11:25

bcn
read this from Zak (link below)

Above this the long awaited 120p target at the top of this year’s price channel is the favoured destination, with the timeframe on such a move being the next 2-3 months

[andrbea] 17/8/2015 10:52

lot of rubbish written by journalists
BCN's PR dept should invite this guy round to put him right on a few points...:


It’s difficult to get direct exposure to lithium through the stock market since 90% of the world’s lithium is produced by companies for which lithium is a small part of their operations. Additionally, not all lithium is created equal. Panasonic, who supplies Tesla with lithium batteries, is said to be looking to China for a solution to their increased demand for high-grade lithium for batteries. Investors who are bullish on the price of lithium because of the “lithium battery story” are best off looking at other ways to play the story such as battery manufacturers. Any lithium “junior mining stocks” with promises of “valuable reserves” trying to ride on the coattails of Tesla should be avoided like the plague. In a coming article, we’ll take a closer look at lithium battery manufacturing companies and also break down the composition of the Global X Lithium ETF (LIT).

[steeplejack] 14/8/2015 10:21

Tesla Motors is raising $500m via a placing of 2.1m shares.

[carbon man] 11/8/2015 16:10

Seems to be short termers getting out, but there is support out there for them,otherwise they would have fallen more sharply on a day like today.

[e-boffin] 11/8/2015 15:52

Drop on really low volume. Doesn't mean much but all sells today.

[carbon man] 07/8/2015 12:30

Have been watching this stock for a while. Have bought some in London, but not much around in Canada, cheapest seems to be around C$ 1.75 and not much size there. This could run higher easily, but only a observation, pleaseDYOR

[btgman] 04/8/2015 10:39

This is a staggering number on a medium term view and now is the time to build your stake.

Only a month or so ago REM were buying at over £1 per share in my view they know better than most what its worth.

Lithium demand is going at an unbelievable rate and probably even faster than is been acknowledged.

The bankable study should be the catalyst to this next level unless an off take agreement comes in the meantime or a bid.

In the scheme of things £500m for this now would be cheap given the additional reserves upside

[chinese investor] 04/8/2015 09:54

Looking Good !