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(BCN) Bacanora Minerals

Discussion in 'General Share Chat (BCN)' started by Groucho, Jun 1, 2016.

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  1. Groucho

    Groucho Member

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    Starting to look interesting.
    3rd Quarter Results
    Tue, 31st May 2016 07:00

    RNS Number : 6399Z
    Bacanora Minerals Ltd
    31 May 2016

    Bacanora Minerals Ltd


    ("Bacanora" or the "Company")


    Q3 Financial Statements


    Bacanora, the London and Canadian listed (AIM: BCN and TSX-V: BCN) lithium and borates company focused on Mexico, is pleased to provide an operational review of Q3 2016 and its unaudited condensed consolidated financial statements for the nine month period ended 31 March 2016, together with the accompanying notes.


    HIGHLIGHTS FOR Q3 2016


    · On April 15, 2016, the Company filed on SEDAR the results of the Pre-Feasibility Study ("PFS") for the development of mine and lithium carbonate ("Li2CO3") processing facility at the Sonora Lithium Project ("Project"). The positive results estimate a pre-tax Internal Rate of Return ("IRR") of 29% and an associated Net Present Value ("NPV") of US$776 million at an 8% discount rate. The PFS was prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The PFS was release on April 15, 2016, with updated mineral resource estimates and the same positive economic results.


    · The results highlight the strong economic potential of producing up to 35,000 tonnes of battery grade Li2CO3, and up to 50,000 tonnes of potassium sulphate ("K2SO4") per year. Refer to the Pilot Plant and Pre-Feasibility Study section below for the highlights of the PFS, and the Company's website and SEDAR for the PFS in its entirety.


    · The Company is continuing to upgrade its pilot plant in Hermosillo and is currently producing lithium carbonate samples for distribution to potential partners in Asia, in Q3 2016.


    · Discussions are continuing with various Asian offtake partners, banks, debt providers and strategic investors. The Company is focused on developing a debt, equity and offtake project financing strategy for the Stage 1, 17,500tpa lithium carbonate project.


    · The Company has commenced a Feasibility Study ("FS") for a two stage mine and processing facility to produce up to 35,000 tpa of lithium carbonate at its Sonora Project in northern Mexico. As part of this study we will be initiating an infill reserve drilling program, appointing international engineering and technical consultants to undertake the geological resource modeling, metallurgical testwork, mine designs and process engineering, as well as recruiting additional technical personnel with lithium development and operating expertise. The Company is currently scheduling to have the FS completed in Q1 2017.


    · Subsequent to quarter end, the Company announced that it has raised £7,702,500 via the placing of 9,750,000 units (the "Placing Units") at a price of £0.79 per Placing Unit with certain funds and accounts managed by BlackRock. Each Placing Unit is comprised of one new common share of the Company and 0.3 of one common share purchase warrant, with each whole warrant being exercisable into one common share at a price of £0.79 at any time subsequent to July 25, 2016, but on or before September 30, 2016.

    Colin Orr-Ewing, Chairman of Bacanora, said, "The lithium market is a highly exciting sector to be in at the moment and given the low costs and robust economics associated with delivering 35,000 tonnes of lithium carbonate a year, as demonstrated through our PFS announced during the period, we are ideally positioned to capitalise on the strong and growing market for this important commodity. The Feasibility Study is now underway, and as part of this we are positively advancing discussions with potential off-take partners in Asia which will be an integral part of our commercialisation of Sonora, which is both large in terms of resources and scalable. We are planning to distribute samples to potential partners in Q3 2016. The Feasibility Study is scheduled to be delivered in Q1 2017. Subject to the successful outcome of the FS and project financing, the Company's overall timetable could potentially align well with a potential future forecasted supply deficit that is being fueled by growth in innovative technologies such as electric vehicles, energy storage and portable devices."


    For further information, please contact:


    Bacanora Minerals Ltd.


    Peter Secker, CEO

    info@bacanoraminerals.com


    Cairn Financial Advisers LLP, Nomad


    Sandy Jamieson / Liam Murray


    +44 (0) 20 7148 7900

    Stifel Nicolaus Europe Ltd., Broker

    Jessica Kalyanpur

    +44 (0) 20 7710 7726

    St Brides Partners, Financial PR Adviser


    Hugo de Salis / Frank Buhagiar / Elisabeth Cowell

    +44 (0) 20 7236 1177



    MINERAL PROPERTIES - LITHIUM


    The Sonora Lithium Project consists of ten contiguous concessions covering 94,186 hectares. Two of the concessions (La Ventana, La Ventana 1) are owned 100% by Bacanora through its wholly-owned subsidiary Minera Sonora Borax S.A de C.V. ("MSB"). The El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 2 concessions are owned by Bacanora's subsidiary, Mexilit S.A. de C.V. ("Mexilit") (which is owned 70% by Bacanora and 30% by Rare Earth Minerals PLC ("REM")). The San Gabriel and Buenavista concessions are owned by Bacanora's subsidiary, Minera Megalit S.A. de C.V. ("Megalit") (which is owned 70% by Bacanora and 30% by REM). REM had the option to negotiate an increase to its interest of up to 49.9% of Megalit. This option expired on January 12, 2016.
     
  2. Groucho

    Groucho Member

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    Macquarie tips Bacanora to fly
    15:30 31 May 2016
    The investment bank says the junior developer’s Sonora lithium project has the potential to be “world-class”, and forecasts shares to climb by 23% over the next year.
    [​IMG]
    Not enough to go round according to forecasts


    Bacanora Minerals Limited (LON:BCN) is set to become a “major, low cost lithium producer”, according to Macquarie, which tipped its share price to jump 23% over the coming year.

    Macquarie is “bullish” on the medium-term prospects of the lithium market, as it predicts demand for electric car batteries will increase 31% by 2021.

    Mass produced electric cars will run on lithium batteries.

    The Australian bank has set a 12-month target price of 120p, up from the current market price of 99p.

    In its research note, Macquarie said Bacanora “could eventually produce in excess of 10% of global supply of lithium carbonate” and was particularly upbeat about the firm’s Sonora project.

    “Bacanora’s Sonora lithium project in Mexico has the potential to be a world-class mine,” said Macquarie in its note.

    “Given the project’s large scale, expandability, close proximity to key markets in the US and Asia, and potentially low cost structure, we think the company is in a solid position.”

    Macquarie also added that it was “bullish” on the medium-term prospects of the lithium market.



    Good timing
    The note from Macquarie comes off the back of Bacanora’s own comment that the development schedule for the Sonora project should dovetail neatly with the expected upturn in electric vehicle usage.

    Colin Orr-Ewing, chairman, said: "The lithium market is a highly exciting sector to be in at the moment and … we are ideally positioned to capitalise on the strong and growing market for this important commodity.

    A pre-feasibility study in April demonstrated the case for the building of a 35,000 tonne per year lithium carbonate facility at Sonora.

    Bacanora is currently upgrading its pilot plant, which it will use for samples for potential offtake partners in Asia.

    The plan is to develop Sonora in two stages, with phase 1 to be financed through a combination of debt, equity and offtake payments.

    The overall timetable should align well with an expected lithium shortage as innovative technologies such as electric vehicles, energy storage and portable devices become more accepted, Orr-Ewing said.

    Bacanora posted a net loss of US$1.6mln (US$98,000 profit) in the three months to March and recently raised £7.7mlm through a placing with Blackrock.

    Shares were up 3p, or 3%, to 99p.

    --Update for broker comment and share price--

    [​IMG]
    Tom Howard

    http://www.proactiveinvestors.co.uk/companies/news/126535/macquarie-tips-bacanora-to-fly-126535.html
     
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  3. Keith Mullins

    Keith Mullins Mullins58

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    Groucho,

    good post. ATB
     
  4. Groucho

    Groucho Member

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  5. Groucho

    Groucho Member

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    Charging towards construction
    [​IMG]
    Bacanora is advancing a feasibility study of the potential for producing up to 35kt pa of battery-grade lithium carbonate at low cost from its Sonora project in Mexico, one of the world’s largest lithium resources. With first production possible in CY2019, Bacanora is well positioned to service what we believe will remain a tight lithium market in which demand is expanding at over 10% annually driven by the fast-growing market for electric vehicles. But with gross opex of <$3,500/t potentially achievable (versus current battery-grade contract pricing of >$8,000/t), Sonora’s unique soft-rock resource should position it towards brine projects in the lower half of the cost curve, providing a margin of safety in the event the current producer oligopoly expands output and/or the plethora of proposed higher-cost hard-rock projects are built.

    • Lithium market expanding at pace: Bacanora offers equity exposure to the fast-growing lithium market in which demand is rising at over 10% annually. This growth is being driven by expansion of the rechargeable battery market as the world increasingly embraces the use of electric and electric-hybrid vehicles, a pattern which is set to see this sector overtake the already well-established market for handheld rechargeable devices as the major end-user of lithium-ion battery technology (vehicle batteries are much more lithium intensive). Future large-scale energy storage solutions provide further ‘blue-sky’ upside potential.
    • Sonora stands apart from peers: The array of new lithium projects emerging into this demand story has raised fears the market may move from deficit to oversupply in coming years – we doubt all projects will come to fruition for a variety of reasons, not least of which is an inability to compete on a cost basis with the current producer oligopoly, which has potential to expand. In this respect Bacanora stands apart owing to the unique nature of Sonora, which as a shallow-lying, soft-rock resource should yield significantly lower mining costs than hard-rock peers, but which also benefits from higher grades and potential operational flexibility than many brine resources (traditionally the main primary source of battery-grade supply). We recently visited the project pilot plant, which has been in operation for the past two years, establishing and de-risking the processing route for this new source of commercial lithium production.
    • Compelling valuation: Bacanora is trading at a discount to the majority of its junior lithium peers on an EV/t resource and targeted production basis, which in our view is misrepresentative of its superior development potential versus many of these peers. We value the shares at 125p on a sum-of-the-parts NAV basis (assuming a fully-funded, fully-diluted NPV10% of Sonora at a $7,000/t long-term lithium price), and expect a re-rating as Sonora is further de-risked from a funding and construction perspective over the next two years.
    Zeus Capital 29/11/2016
    Full 32 page report available from www.research-tree.com
     
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  6. Keith Mullins

    Keith Mullins Mullins58

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    I have posted a few things on the REM board that my be of interest. ATB
     
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  7. Keith Mullins

    Keith Mullins Mullins58

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  8. Keith Mullins

    Keith Mullins Mullins58

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  9. Keith Mullins

    Keith Mullins Mullins58

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  10. Keith Mullins

    Keith Mullins Mullins58

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  11. Keith Mullins

    Keith Mullins Mullins58

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    BCN/REM

    both having good days.
     
  12. Groucho

    Groucho Member

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    SOLARWORLD AG ENTERS PARTNERSHIP FOR LITHIUM MINING IN ORE MOUNTAINS
    BACANORA MINERALS LTD ACQUIRES 50 PERCENT SHARE OF SOLARWORLD’S LITHIUM PROJECT
    21-02-17

    The lithium project initiated by SolarWorld in the Eastern Ore Mountains is moving forward. The solar technology group will sell a share of 50 percent of its project in Altenberg-Zinnwald to Bacanora Minerals Ltd. Under the name Deutsche Lithium GmbH, the future joint venture will be domiciled in Freiberg, Saxony, and operationally controlled by Bacanora Minerals and SolarWorld AG together.

    The new partner will earn its share of the project in return for a cash consideration of € 5 million and the completion of a feasibility study on the project, which will take approximately 18 to 24 months. Bacanora Minerals will undertake all financial investments for the project. Furthermore, the partner has the option to acquire the outstanding 50 percent within a 24 month period for a mid double-digit million amount. Bacanora, a London listed company, with headquarters in Calgary, Canada, is an experienced resource developer focused on lithium and the Sonora region, Mexico.

    Dr.-Ing. E. h. Frank Asbeck, CEO of SolarWorld AG: “Lithium is a key raw material of storage systems. Being able to store and consume renewable energies 24/7 will give solar power another enormous boost.” That’s why SolarWorld started to explore lithium at Altenberg-Zinnwald on the German-Czech border in 2011. The deposit of lithium in the Eastern Ore Mountains is situated about 50 kilometers from SolarWorld’s site in Freiberg and is one of the largest in Europe.

    “Initiating lithium mining in the Ore Mountains has paid off. After we, as SolarWorld, have taken the first steps, our partner’s know how and financial means will now move this project forward. This will have a lot of positive effects for the region. SolarWorld will continue to focus on manufacturing high-quality solar power products that can be combined with storage systems and smart control applications,” says Dr.-Ing. E. h. Frank Asbeck.


    SolarWorld REAL VALUE: SolarWorld manufactures and sells high-tech solar power solutions and in doing so contributes to a cleaner energy supply worldwide. The group, headquartered in Bonn, Germany, employs 3,288 people and operates facilities in Freiberg, Germany; Arnstadt, Germany; and Hillsboro, Oregon, USA as well as in a joint venture with Qatar Solar Technologies. From raw material silicon to solar wafers, cells and modules, SolarWorld manages all stages of production ‒ including research and development in its own company, SolarWorld Innovations. Through an international distribution network with locations in Europe, USA, Singapore, Japan, South Africa and Qatar, SolarWorld supplies customers all over the world. The company upholds high social standards and commits itself to resource- and energy-efficient production. With its program Solar2World, the company supports the expansion of solar power in developing countries. SolarWorld was founded in 1998 and has been publicly traded on the stock market since 1999. More information at www.solarworld.com

    Contact:
    SolarWorld AG
    Investor Relations
    Phone: +49 228 55920-470; Fax: +49 228 55920-9470,
    Email: www.solarworld.de/en/investor-relations
     
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  13. Groucho

    Groucho Member

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    SolarWorld Solicium I Zinnwald-Lithium-Project I German Day I PDAC Convention I March 3, 2015
    The SolarWorld owned Zinnwald Lithium-Project has a PERC compliant measured and indicated resource of 27 million tons ore (Lithium Mica Greisen) @ 0.36 wt% Lithium comprising 96,000 t Lithium-metal (510.000 t LCE)

    Additionally, there is a considerable upside potential of about 535,000 t Potassium, 5,500 t Tin and Cesium

    Furthermore, significant potential of Sn-W (Nb-Ta) mineralization was recently discovered The SolarWorld developed a processes to produce high purity (battery grade) Lithium Hydroxide, Lithium Carbonate and Potassium Sulfate

    Currently in discussions with potential strategic and financial partners in order to secure project financing
    http://www.canadian-german-mining.c...y_at_pdac_2015/Jorg_Nessler_SolarWorld_AG.pdf
     
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  14. Keith Mullins

    Keith Mullins Mullins58

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  15. caseyjones64

    caseyjones64 A Legendary Member

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    BCN flat today in London but closed up nearly 10% on TSX. So a good start tomorrow should be on the cards.
     
  16. Keith Mullins

    Keith Mullins Mullins58

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    Casey

    The London and Canada SP have tended not to follow each other, probably due to the fewer shareholders in Canada.

    This will hopefully change.

    ATB
     
  17. caseyjones64

    caseyjones64 A Legendary Member

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    BCN up over 9% in Toronto again. News coming perhaps?
     
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  18. Keith Mullins

    Keith Mullins Mullins58

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    Casey

    I was with my accountant yesterday, he holds both BCN/REM. He topped up both yesterday having read the news regarding BCN's new German mine investment.

    I dipped my toe in KENV recently, they will be the only AIM quoted company producing Lithium shortly.

    I attended an investment presentation recently at the Williams F1 factory. Foresight and Williams are launching a new EIS scheme. We had a tour around the factory and all the new development work was based on EV's.

    Exciting times ahead.

    HAGW
     
  19. caseyjones64

    caseyjones64 A Legendary Member

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    Hi Keith

    Thanks for the tip - I'll look at KENV. I see profit-taking took hold of BCN at the end of trading in TSX.

    Casey
     
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  20. Groucho

    Groucho Member

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    28 February 2017

    Bacanora Minerals Ltd.

    ("Bacanora" or the "Company")

    Interim Results for the six months ended 31 December 2016



    Bacanora, the London and Canadian listed (AIM: BCN and TSX-V: BCN) lithium company which is developing the Sonora Lithium Project in northern Mexico, is pleased to provide its unaudited condensed consolidated interim results for the 6 month period ended 31 December 2016. These results were prepared in line with International Financial Reporting Standards, and, unless otherwise specified, amounts are expressed in Canadian dollars ('CAD$').


    Highlights

    Operational

    · Continued progress made with ongoing feasibility study ('FS') at the Company's Sonora lithium project ('Sonora') in Mexico - expected to be completed in late summer 2017

    · FS is focused on an operation at Sonora capable of initially delivering 17,500 tonnes per year of battery-grade lithium carbonate (Li2CO3) for the first two years of operations, followed by 35,000 tonnes Li2CO3 pa thereafter

    · Successfully completed a 4,000 metre infill drilling programme to upgrade a portion of the current Mineral Resource from the Indicated to Measured category, in conjunction with geotechnical and hydrological drilling for the FS

    o Sonora currently has a large Indicated Resource currently comprised of 259 Mt averaging 3,200 ppm Li for 4.5 Mt of lithium carbonate equivalent ('LCE')

    o Resource model currently being updated by SRK Exploration Ltd

    · Ongoing refinement and optimisation of the lithium carbonate flow sheet developed at the Pilot Plant operations in Hermosillo in line with strategic focus on the larger lithium carbonate supply chain in Asia, rather than the smaller lithium hydroxide market

    · The Pilot Plant continues to produce battery grade lithium carbonate samples which are being sent to potential off-takers and customers in Asia

    o Discussions with potential off-take partners including site visits are ongoing

    · The Company is fully financed through to the completion of the FS

    Post Period

    · Acquired 50% interest in, and joint operatorship of, the Zinnwald Lithium Project ('Zinnwald') in southern Saxony, Germany from SolarWorld AG ('SolarWorld'), the largest solar panel producer in Europe

    · Acquisition is in line with management's vision to become a global lithium operator focused on projects withsignificant value accretion potential and defined markets at both the product and geographic levels

    · Zinnwald, which reportedly produced lithium carbonate in the 1950s, provides Bacanora with a potential entry point into the thriving market for lithium in Germany and Europe, which is being driven by the automotive, renewable energy storage and chemicals industries

    · Bacanora will earn 50% of the project in return for a cash consideration of €5 million and the completion of a Feasibility Study which is anticipated to cost approximately €5 million and to take approximately 18-24 months to complete.

    o The Company has an option to acquire the outstanding 50% held by SolarWorld within a 24 month period for €30 million

    Corporate

    · Appointment of Mark Hohnen, Non-Executive Director of the Company, as Chairman of the Board

    o James Leahy, interim Non-Executive Chairman, resumed his role as Non-Executive Director of the Company

    · Appointment of Ray Hodgkinson, who has substantial public company and natural resource experience, as a Canadian based Non-Executive Director of the Company - Mr Hodgkinson previously served on the Board between 2006 and 2013, prior to Bacanora's AIM listing

    · Subsequent to December 31, 2016, the Company issued 200,000 common shares as a result of 200,000 stock options exercised at a price of $0.30 each, for total proceeds of $60,000


    Peter Secker, CEO of Bacanora, said, "Bacanora's strategy is to continue to build an international lithium company with a portfolio of projects producing high value lithium products for the electric vehicle and energy storage sectors. The full feasibility study at Sonora is well advanced and on course to be completed in the second half of the year. An infill drilling programme has been completed, the results of which will be included in an updated resource model. Our pilot plant has been running continuously since May 2016 producing battery grade lithium carbonate samples which provides the basis for our ongoing discussions with potential offtake partners. We are pleased with the progress being made and our target remains for production at Sonora to commence in early 2019.


    "As we advance Sonora towards production, it is our intention to develop a pipeline of additional lithium projects with a strategic geographical focus. The recent acquisition of 50% of the Zinnwald lithium project in Germany is the next step down this path. Zinnwald provides Bacanora with a potential entry into the important European lithium market which we expect to complement the Company's existing exposure to the large Asian market that Sonora provides. We will continue to provide further updates on our progress, as we look to confirm Sonora's status as the next world class lithium deposit and commence a feasibility study at Zinnwald."


    Chairman's Statement


    The period saw the commencement of the FS at the Sonora Lithium Project in Mexico and since then significant progress has been made towards its completion. This process has been advanced in tandem with our discussions with potential off-take partners, which are progressing positively. This is my first statement as Chairman of Bacanora and I am pleased to be working with a project that has distinguished itself favourably in terms of grade, scale, and costs in comparison to its peers. With this in mind, we look forward to reiterating the attractive economics of this project via the FS and finalising our offtake discussions for the sale of lithium carbonate to the Asian market.


    In terms of corporate strategy, Bacanora is focused on building an international, world class lithium company with assets positioned to benefit from the demand for lithium carbonate in multiple global markets. During the period, we advanced discussions regarding the Zinnwald Project in Germany and this culminated in the recent acquisition of a 50% interest of this prospective project in return for a cash consideration of €5 million and the completion of a feasibility study (which is anticipated to cost approximately €5 million). Zinnwald provides us with an ideal entry point to penetrate the European market for the product, which is used in the energy storage and electric vehicle industry. Zinnwald, which reportedly produced lithium carbonate in the 1950s, is located in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten and lithium over the past 300 years.


    Although bringing Sonora into production in 2019 remains the Company's main focus, Zinnwald fits neatly with our timetable given that the FS in Germany is expected to take 18-24 months, so allowing the study to be completed almost concurrently with the commencement of the new planned operation start-up in Mexico. In addition, the Company also has an option to acquire the outstanding 50% held by SolarWorld within a 24 month period for €30 million. The Company's focus on the German market is based on the rate of growth of the electric vehicle market in Europe and the significant impact it will have on lithium demand over the next decade. For example, in late 2016 the Daimler/Mercedes Group announced that "their automotive group will invest up to $11 billion into at least 10 new electric vehicles plants by 2025".1 In addition, the VW Group announced their "commitment to launching more than 30 million electric cars by 2025, and achieving annual sales of the zero-emission cars of between two and three million by the same date-equivalent to some 20 to 25 percent of the total unit sales expected at that time".2 The above translates into a potential step up in demand for lithium batteries to power all these vehicles, and Bacanora intends to play its part by becoming a major regional supplier of lithium carbonate.


    Regarding the ongoing FS at Sonora, this is focused on commissioning an operation capable of delivering 17,500 tonnes per year of battery-grade Li2CO3 for the first two years, following which it anticipates expanding its operations to 35,000 tonnes Li2CO3 per year. At the beginning of the period, the Company announced that it had appointed world class consultants with significant experience of lithium projects to oversee various elements of the FS. These include:


    · Ausenco Engineers to conduct the process engineering

    · SRK Consulting Ltd to undertake a Mineral Resource Estimate

    · International Mining Consultants to deliver the Mineral Reserve Estimate and mine planning


    The FS activities have progressed well. We completed a 4,000 metre drill programme for our resource upgrade and mine planning work and the preliminary reserve model and mine plan, which are being prepared by International Mining Consultants, have progressed to schedule. SRK has now received the drilling data from the July 2016 infill drilling programme and will prepare an updated MRE for the FS. This updated MRE is currently scheduled for calendar Q1, 2017. We have also finalised the initial process flow sheet and are in negotiations with international vendors for larger equipment and machinery. Given the recent instruction to deliver a strategy to optimise Sonora's operating costs and energy requirements due to the continued strengthening in reagent input costs, during the period we announced that the results of the FS will not be published until the summer 2017, as the Company believes it will take longer than originally anticipated to ensure that the optimum energy supply for the kiln is selected. Rising costs are relevant to all Bacanora's peers, but importantly, these are being experienced in tandem with a rise in lithium carbonate pricing. The Company has been working with the SignumBox Group in Santiago to develop long-term lithium pricing scenarios and supply-demand models. The FS is budgeted to cost approximately $7 million and we are fully funded for this.


    In terms of our offtake discussions, the expanded Pilot Plant has been operating since May 2016, producing battery grade samples of lithium carbonate for delivery to potential off-takers in Asia and Europe. We are delighted to have hosted several site visits with various interested international lithium trading companies and mining companies during the period. Negotiations in respect to offtake agreements with these potential partners are ongoing and will continue in tandem with the preparation of the FS.


    The continuous running of the Pilot Plant has also benefitted the Company in other ways, allowing us to develop and optimise the flow sheet for lithium recoveries and reagent consumption. Some of the specific achievements over the last twelve months are:


    · Ore-to-product metallurgical test work on bulk samples taken from trenches on the clay units from the planned mining areas within the 100% owned La Ventana concession is in progress

    · Upgrading of concentrate and pre-concentrate front-end processes to optimise lithium recovery

    · Hydrometallurgical recoveries have been improved by the addition of gas-fired stationary calcining units for continuous roasting of the lithium concentrate

    · Optimisation of gypsum consumption and evaporation and crystallisation parameters

    · Increased capacity in the Pregnant Liquor Solution circuits to allow continuous leaching operations

    · Installation of additional resin columns in the lithium carbonate recovery circuit for the refining of the product to battery-grade lithium carbonate


    In addition to the significant flow sheet development and optimisation being undertaken at the Pilot Plant, all of the flow sheet development is being audited by independent consultants supervised by Ausenco, as part of the ongoing FS process.


    The continuous running of the Pilot Plant also means that we have been training employees, of which there are approximately 20 now employed. Training and quality control processes are in full swing to negate risk associated with execution of commissioning and operational phases after construction of the Stage 1, 17,500 tpa plant and to ensure accelerated commissioning schedules in terms of operations and quality control. This is expected to de-risk operations significantly. Over the next 18 months the Company will continue a recruitment campaign of engineers and operators in order to maintain the plant in continuous operation and to gain expertise in those processes that require supervision and monitoring for optimisation and quality control.


    Corporate


    During the period, we made some changes to the Board. I took the position of Chairman meaning that James Leahy, interim Non-Executive Chairman, resumed his role as Non-Executive Director of the Company. The appointment of Ray Hodgkinson as a Canadian based Non-Executive Director of the Company, replacing Shane Shircliff, was also announced. He has substantial public company and natural resource experience and is very familiar with Bacanora, having been on its board between 2006 and 2013, prior to its AIM listing.


    On 23 November 2016, the Company announced that the financing condition in the conditional lithium hydroxide supply agreement, previously announced on 28 August 2015, had not been met under the terms of the agreement. The Company advised that it had extensive discussions with the customer as to the feasibility of securing project specific financing pursuant to the terms and conditions of the agreement, that those discussions have now concluded, and therefore we are discontinuing further efforts to secure project specific financing pursuant to the agreement. This development was in line with Bacanora's strategy to focus on the production of lithium carbonate to service the rapidly growing Asian and European markets for electric vehicles and energy storage.


    Financial


    The Company is fully financed with approximately $24 million in the bank and is therefore fully funded through to the completion of the Feasibility Study.


    In order to meet the Company's planned growth and development activities, the Company budgets to spend an aggregate of approximately $17 million over the next 12 months, with approximately $7 million on the Feasibility Study and related expenditures, and approximately $2 million on Pilot Plant related capital expenditures.


    Outlook


    Bacanora's activities during the period have been aligned with our commitment to delivering high quality and competitive lithium production projects which are ideally positioned to service growing demand for lithium carbonate globally. Our decision to dig deeper into the implications of the rise in reagent prices despite the delays this would ensue is testament to this. Our recent acquisition in Germany means that we are now an international lithium development company and we will continue to build on this proposition through further appropriate acquisitions which demonstrate the potential for excellence. News will be forthcoming in respect to the commencement of our FS at Zinnwald and in respect to Sonora, we will publish an updated resource, provide an update on our offtake discussions, and of course, publish the FS.


    I would like to thank our shareholders, management, employees and advisors for their support during the period and look forward to providing updates in the near term.


    Mark Hohnen

    27 February 2017
    http://m.londonstockexchange.com/exchange/mobile/news/detail/13141123.html
     
    Keith Mullins likes this.

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