Bacanora Minerals Ltd. said Feb. 27 that NextView Capital failed to complete its previously reported £31.2 million investment in the company.
The Chinese institutional fund management group had agreed in December 2017 to acquire a 19.89% interest in Bacanora through a private placement of 32,976,635 common shares at 94.53 pence apiece.
Bacanora originally expected the transaction to close by the end of January. However, NextView failed to forward the proceeds to the company, leaving it in default.
The company noted that further discussions did not result in any satisfactory alternative proposals, and it has reserved its rights in respect of the default as it seeks advice on the matter.
Bacanora management is evaluating funding options in order to enter the construction phase for its Sonora lithium project in Mexico within the first half, as the proceeds from the placement were earmarked for the development.
The company also recently outlined plans for a reorganization to change its domicile of jurisdiction to the U.K. from Canada and move to a single listing from its dual-listed structure.
