Bacanora Lithium (AIM:BCN) Cancels Proposed Placing As Discussions Continue With Additional Parties To Secure The Remaining Construction Funding Requirement.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) notes the announcement by Bacanora Lithium plc (AIM: BCN) that, due to current volatility in global commodities markets, it has elected not to proceed with its proposed placing to raise gross proceeds of US$100m.
To date, Bacanora has announced equity and debt funding commitments totalling US$240m, which represents 52% of the US$460m required for Stage 1 production of 17,500 tpa of Li2CO3 at Sonora (the “Construction Funding”). These include a US$150m senior debt facility with RK Mine Finance, one of the leading specialist mining lenders, and conditional strategic investments from the State General Reserve Fund of Oman (SGRF), the sovereign wealth fund of the Sultanate of Oman, and from Bacanora’s off-take partner, Hanwa, for a combined total of US$90m.
Bacanora will now focus on completing the Front End Engineering Design and remains in discussions with several additional parties with regards to securing the remainder of the Construction Funding, so that it can be in a position to begin construction of the Project once financing is secured.
The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13723309.html