LONDON (Alliance News) – Bacanora Minerals Ltd Thursday said its pretax loss widened in the three months ended in September due to increased costs as it continues to advance its two projects in northern Mexico to the feasibility study phase.
At the end of the period, Bacanora had a cash balance of CAD13.1 million.During the three months ended September 30, the company's pretax loss widened to CAD537,000 compared to a CAD438,000 loss in the comparable period a year earlier. The wider loss was caused increases in administration costs to CAD397,000 from CAD119,000. It has not yet started to generate revenue.
"The company ends the period in a robust cash position…Since the end of the period we have also made solid progress on commercialisation of both the lithium and borate projects through further drilling, and the commencement of the respective feasibility studies," said Non-Executive Chairman Colin Orr-Ewing.
The company has two projects in northern Mexico, the Magdalena borate project and the Sonora Lithium project, both of which are being worked toward feasibility studies.
Design work has been initiated at the Magdalena project for a plant that would be capable of producing up to 25,000 tonnes per year of boric acid whilst the design for a plant at the Sonora project will be able to produce up to 50,000 tonnes per year of lithium carbonate.
Bacanora has also started a 1,000 metre, high quality drilling programme on the most advanced target on the Magdalena project alongside 25 reverse circulation holes at the Buenavista deposit.
"Since the end of the period we have also made solid progress on commercialisation of both the lithium and borate projects through further drilling, and the commencement of the respective feasibility studies," said Orr-Ewing.
Bacanora shares were up 2.4% to 0.850 pence per share on Thursday morning.
Rare Earth Minerals PLC holds a 12% stake in Bacanora and also has a holding in the Sonora project. Rare Earth shares were down 1.0% at 1.01p.
By Joshua Warner; [email protected]; @JoshAlliance
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Source: http://www.lse.co.uk/AllNews.asp?code=548lyvuc&headline=Bacanora_Minerals_Reports_Wider_Loss_As_It_Progresses_Projects
