Bacanora Lithium plc (LSE: BCN) announced on Monday that Ganfeng Lithium signed a new joint venture agreement in connection with its investment in the Sonora project in Mexico, following the exercise of its option to increase its stake in the project from 22.5% to 50%.
Completion of the joint venture remains conditional upon certain approvals and consents from authorities in China. The final approval is expected in the coming weeks.
With a Measured plus Indicated Mineral Resource estimate of over 5 million tonnes (‘Mt’) (comprising 1.9 Mt of Measured Resources and 3.1Mt of Indicated Resources) of lithium carbonate equivalent and an additional Inferred Mineral Resource of 3.7 Mt of LCE, Sonora is regarded as one of the world’s larger known clay lithium deposits.
Ganfeng is continuing to integrate its flow sheet for the production of battery grade lithium into the final engineering design and remains on schedule to deliver its final engineering packages to Bacanora during H1 2021, Bacanora said in a press release. First production is expected in 2023.
“We are pleased that Ganfeng and Bacanora have agreed terms on the updated joint venture agreements and look forward to completion of Ganfeng’s investment to own 50% of the Sonora Lithium Project,” said Peter Secker, CEO of Bacanora.
“The Sonora Lithium Project is now well placed to be in production in 2023 and delivering battery-grade lithium products into the fast-growing energy storage market.”
By Monday afternoon, Bancora’s shares were up 6.3% in the LSE. The company has a £127 million market capitalization.
