Blackrock's $15m placement to Sonora lithium neighboursBig money finding it's way to Mexican lithium. Alix / Lithium Australia currently working on concession surrounded by BCN/REM's $250m resource.
Alix will also receive a 10% royalty for any processing technique developed on BCN/REM's resource.
See: https://www.stockhouse.com/news/press-releases/2016/04/19/alix-and-lithium-australia-announces-definitive-agreement-work-program
Bacanora Announces Issuance of Equity to Funds Under Management by Blackrock
CALGARY, ALBERTA--(Marketwired - May 20, 2016) - BACANORA MINERALS LTD. ("Bacanora" or the "Company") (TSX VENTURE:BCN) (AIM:BCN), the London and Canadian listed lithium company which is developing the Sonora Lithium Project in northern Mexico(1), is pleased to announce that it has raised £7,702,500 (approximately US$11.2 million / approximately CAD $14.7 million) via the placing of 9,750,000 units (the "Placing Units") at a price of 79 pence (approximately CAD $1.48) per Placing Unit (the "Placing") with certain funds and accounts managed by BlackRock ("BlackRock"). Each Placing Unit is comprised of one new common share of the Company (a "Placing Share") and 0.3 of one common share purchase warrant, with each whole warrant (a "Placing Warrant") being exercisable into one common share at a price of 79 pence at any time subsequent to July 25, 2016, but on or before September 30, 2016. Accordingly, an aggregate of 9,750,000 Placing Shares and 2,925,000 Placing Warrants are issuable under this Placing. In the event that the Placing Warrants are fully exercised, the total proceeds received by the Company from the Placing will be approximately £10,000,000 (approximately US$14.6 million / approximately CAD $19.1 million). The Placing is in line with the Company's strategy to increase the institutional representation of its shareholder register and follows the securing of Bacanora's first major institutional investor in November 2015.
The funds raised will be invested in the Company's Sonora Lithium Project in Mexico, one of the larger lithium resources in the world, which contains estimated Indicated Mineral Resources of 259 million tonnes ("Mt") averaging 3,200 ppm Li for 4.5 Mt of lithium carbonate equivalent ("LCE")(2) and Inferred Mineral Resources of 160 Mt averaging 3,200 ppm Li for 2.7 Mt of LCE. A fully funded Feasibility Study ('FS'), which is due for completion in Q1 2017, is underway at Sonora in line with the Company's strategy to deliver a two phase open-pit mine and lithium carbonate processing facility with a life of over 20 years as quickly as practicable. A Pre-Feasibility Study ('PFS') announced on 3 March 2016 highlighted the attractive economics associated with delivering on this strategy (Pre-tax NPV8% of US$776 million and Pre-tax IRR of 29%). In tandem with the FS, discussions are continuing with various Asian offtake partners, banks, debt providers and strategic investors.
Peter Secker, CEO of Bacanora, commented, "We are very pleased to welcome Blackrock, our second major institutional investor, to our shareholder register. In our view, raising £7.7 million (with the potential to increase this to an aggregate of £10 million) at the prevailing share price in current market conditions is testament to the potential of the Sonora Lithium Project to be a major supplier to the lithium market, as highlighted by the recent PFS. BlackRock is not only gaining exposure to Bacanora at an exciting time in its development, but also to the attractive demand / supply dynamics of the global lithium market. Thanks to lithium's key role in highly innovative industries such as smartphones, electric vehicles and energy storage, supply is expected to struggle to match continued rapid growth in demand for many years to come. We believe Bacanora is well placed to play its part in closing this expected shortfall in supply and I look forward to providing further updates on our progress."
The Placing was completed in reliance upon exemptions from applicable prospectus and registration requirements. Accordingly, any trades of securities issued under the Placing that occur in Alberta or to a purchaser in Alberta would be subject to a hold period equal to four months and one day from the date of issuance (being September 21, 2016). Trades of securities occurring through the CREST system among non-Alberta residents will not be subject to this restriction. There were no Alberta subscribers under the offering and all of the aforementioned shares will be deposited under the CREST system.