Peter Secker, CEO of Bacanora, commented: We welcome the changes to the Joint Venture Agreement and look forward to continuing to work on the engineering and design of the Zinnwald Lithium Project.
We have a strong management team in place in Germany and continue to progress the project and work with potential investors on its financing. We fully believe that Zinnwald has the potential to become a leading supplier to the European battery industry.
Bacanora Lithium Plc, (AIM: BCN) the lithium development and exploration company, is pleased to announce that it has reached agreement with the administrators of Solarworld AG (“Solarworld”) to amend the Joint Venture Agreement in relation to Deutsche Lithium GmbH (“DL”), which owns 100% of the Zinnwald Lithium Project (“Zinnwald”), located in southeast Germany.
Bacanora acquired an initial 50% interest in DL in February 2017. Bacanora had an option to acquire the outstanding 50% that it does not own, whilst Solarworld had the right, but not obligation, to buy back Bacanora’s shareholding for €1 (together the “Call Options”). The Company and Solarworld have agreed to cancel the Call Options. As a result Bacanora will now own 50% of DL, and Solarworld, which is currently in administration, will hold the other 50%. Bacanora has committed to provide a minimum of €1.35 million in funding to DL over the next two years to progress the development of Zinnwald. As announced previously this funding is expected to progress the lithium test-work and downstream engineering stages.
Accounting Reference Date
The Company has changed its accounting reference date from 30 June to 31 December. Accordingly the Company will publish its Annual Report incorporating its audited consolidated financial statements for the six month period to 31 December 2019 on or around 2 March 2020. The Company will be providing an update on the Sonora Lithium Project in this upcoming Report.
Bacanora Lithium Plc is an AIM-listed (ticker ‘BCN’) lithium development and exploration company. The Company owns assets in Mexico and Germany. It is focused on building, in collaboration with its major shareholder and offtake partner, Ganfeng Lithium (the world’s largest lithium metals producer), a 35,000 tonne per annum open pit lithium carbonate operation at its flagship asset, the Sonora Lithium Project in Mexico. The Sonora Lithium Project has 8.8 million tonnes of lithium carbonate (Li2CO3) equivalent resources, with an approximate 250 year resource life, as detailed in its December 2017 Feasibility Study.
