Bacanora Minerals Ltd. said April 10 that it entered an agreement with Japanese company Hanwa Co. Ltd. for the latter to undertake a 10% equity investment and purchase battery-grade lithium carbonate produced at the Sonora lithium project in Mexico.
Under the equity investment deal, Hanwa will acquire an initial 10% stake in Bacanora, raising approximately £10.2 million for the company through the placement of 12,333,261 shares at 82.5 pence each.
Hanwa will have the right to nominate a member to Bacanora's board of directors, a pre-emptive right to maintain its 10% equity interest and an option to increase its stake to 19.9%.
Meanwhile, the off-take agreement calls for Hanwa to purchase up to 100% of lithium carbonate produced at the Sonora project during stage one, with an option to increase the off-take tonnage by up to 100% at stage two, based on a 17,500-tonne-per-annum operation in the first two years and a succeeding output of 35,000 tonnes per annum.
The tonnage-based contract for battery-grade lithium carbonate will be sold at market pricing, with the final pricing to be determined prior to the commencement of production.