Bacanora Lithium PLC is planning a US$300 million capital raise in early 2020, Reuters reported Oct. 14, citing CEO Peter Secker.
Secker said the company's recently completed deal with China's Ganfeng Lithium Co. Ltd. will put Bacanora in a better position to raise cash for its Sonora lithium project in Mexico. In July 2018, the company scrapped a US$100 million placement, citing market volatility.
Bacanora received about £22 million in funds from Ganfeng in exchange for a 29.99% equity interest in the company and a 22.5% joint venture investment directly in the Sonora project.
Ganfeng Vice Chairman Wang Xiaoshen was appointed a director of Bacanora. The Chinese company plans to proactively advance the development of the Sonora project during the second half of this year.
Secker said construction at Sonora is scheduled to start in the second quarter of 2020 and production should start in early 2022, about six months later than anticipated.