The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.
Just a few months after Bacanora Minerals (TSXV: BCN) and Rare Earth Minerals (LSE: REM) signed a deal with Tesla Motors (NASDAQ: TSLA) to supply the car maker with lithium hydroxide from their Sonora lithium project in Mexico, the companies have raised US$13.4 million in a private placement.
The proceeds will be used for a bankable feasibility study of the project, 180 km northeast of Hermosillo, and towards the upgrading and continuous running of a pilot plant in Hermosillo to produce bulk quantities of lithium products to long-term off-take parties.
Bacanora says previous testwork of the lithium carbonate from the pilot plant has produced high-quality lithium carbonate for initial off-take discussions. News of the financing sent Bacanora’s shares down 13¢, or 7.3%, to finish at $1.65.A prefeasibility study of the Sonora lithium project is expected to get underway in the first half of 2016.
Colin Orr-Ewing, Bacanora’s chairman, stated in a company press release that “to have successfully raised funds, during what continues to be a challenging environment for commodities in general, highlights the attractive dynamics of the lithium market, thanks to the metal’s key role in innovative and fast-growing industries such as mobile communications and electric cars.”
The Sonora lithium project consists of 100,000 thousand hectares of ground in northeastern Sonora state, with an indicated resource of 1.12 million tonnes of lithium carbonate equivalent (LCE) in 95 million tonnes of clay averaging 2,200 parts per million (PPM) lithium.
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