Bacanora Minerals Ltd (CVE: BCN)(LON:BCN) has signed an off-take deal with Hanwa Co., a leading Japan-based global trading company and one of the larger traders of battery chemicals in the Asian region, with reported net sales of more than ¥1,500 billion in 2016.
Under the terms of the agreement, Hanwa will take a 10% equity investment in Bacanora. This will raise approximately £10.2mln via the placement of just over 12mln shares at 82.5p.
Hanwa will also sign an off-take agreement for up to 100% of the battery grade lithium carbonate (Li2CO3) produced at Bacanora’s Sonora lithium project in Mexico.
Bacanora is planning to produce 17,500 tonnes of Li2CO3 per annum as stage one of its mining operation at Sonora, commencing in 2019.
After two years of producing at this level, the company then plans to lift production to 35,000 tonnes per annum.
Hanwa will pay market prices for between 70% and 100% of the lithium carbonate produced during stage one and has the option to increase the off-take tonnage by up to 100% at Stage 2 production.
"This partnership with one of Japan's leading battery chemical traders is transformational for Bacanora,” said chairman Mark Hohnen.
“It significantly reduces the overall risk profile of the project, validates our production process, and provides us with an excellent platform with which to fund the future development of Sonora.”
Original Article: http://www.proactiveinvestors.co.uk/companies/news/176207/bacanora-signs-off-take-deal-with-japan-based-global-trading-company-176207.html
