LONDON (Alliance News) – Bacanora Minerals Ltd on Monday said shareholders will vote next month on the company's plan to transfer the existing company into a new UK company and delist from the Toronto Stock Exchange as it looks to move from its current home in Canada.
The reorganisation of the company's corporate structure will involve setting up a new company in England called Bacanora Lithium PLC, which will then acquire the existing company and become the parent organisation.Bacanora originally unveiled plans to re-domicile its corporate jurisdiction to the UK last month, arguing the move from Canada would deliver significant cost savings and better suit the senior management team which is primarily based in the UK. The move also reflects "the success of the company's AIM listing and the positive reception from UK investors".
Bacanora Lithium would then have its shares admitted to trading on AIM before shares in Bacanora Minerals are delisted from both the London and Toronto Stock Exchanges.
The company is looking to shun Canada as only around 10% of its shareholding has come from Canada and its major institutional shareholders have invested into the company through the UK market.
Ultimately, existing shareholders will have the same holding in Bacanora Lithium as they current hold in Bacanora Minerals.
Shareholders will vote on the proposal on August 15 and will specifically reject or approve the re-domicile and the court-approved plan of arrangement in Canada that would facilitate the move.
At least 66.66% of the votes cast by Bacanora shareholders will have to be in favour of the proposal for it to pass, and Bacanora also will need the approval of the Court of Queen's Bench of Alberta before it can complete the move to the UK.
The current timetable states the company plans to delist Bacanora Minerals shares from the TSK-V and AIM on August 16, with shares of Bacanora Lithium being admitted to AIM the following day.
The name change is to reflect the company's focus on lithium through its flagship Sonora project in Mexico. However, the company also owns the Magdalena borate project that lies in the same country.
Bacanora shares on AIM were down 0.6% to 87.0 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
