Bacanora Lithium PLC (LON: BCN) share price has risen 50.3% over the past six months as investors flocked to lithium companies due to the rising demand for the battery metal among electric vehicle manufacturers.
The company has 10 concessions in Mexico that allow it to mine a wide area of up to 100,000 hectares in the Sonora region.
Today, the lithium mining company announced that the high court had approved its capital reduction proposals outlined in its notice of General Meeting on September 6, 2021, and approved by shareholders on September 24, 2021, during the GM.
Bacanora also reported that it had received approval from RK Mine Finance Bermuda 3 Limited (Red Kite), which has issued a $50 million senior debt facility to the company to reduce share capital.
The company intends to distribute 90,619,170 shares in Zinnwald Lithium Plc based on two remaining conditions being met, including the offer from Ganfeng International Trading (Shanghai) Limited, being declared unconditional.
The second condition is the expiry of the regulatory lock-in period for the transfer of Zinnwald shares on September 29, 2021, which currently applies to the company.
Bacanora also issued an update on the progress made at its Sonora mine, where geotechnical test work and earthwork surveys are ongoing on the plant site after removing surface vegetation and topsoil.
The company’s partner Ganfeng plans to deliver long lead items at Sonora in late 2022 and early 2023, when production is expected to begin at the site. The company has also acquired an additional 500 hectares to expand its site in future.
*This is not investment advice.
Bacanora Lithium share price.
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