Bacanora Lithium expects to complete fundraising for Sonora project in H2

Bacanora Lithium said Wednesday it would finalise the funding package for its Sonora project and complete the feasibility study for its second lithium project at Zinnwald in the second half of the year.

During the first half of the year, the lithium explorer had secured $240m as part of the Sonora lithium project financing package to construct an initial 17,500 tonnes per annum lithium carbonate operation.

The company confirmed it was in talks to secure funding to double the carbonate operation to a 35,000 tonnes per annum lithium carbonate in the second half of the year. 

The ongoing work towards a feasibility study into a battery grade lithium product operation at Zinnwald was on track for completion in second quarter of 2019, the company said.

Over the course of the last six months, the company announced a resource upgrade and the successful production of battery-grade samples of lithium fluoride from Zinnwald concentrates. 

The company completed a resource estimate showing Zinnwald contained of 124,974 tonnes of lithium, up 30% from the previous resource estimate. First production of lithium fluoride samples showed 99% purity from concentrates at Zinnwald, providing proof of concept that battery grade lithium products can be produced.

'In tandem with the Feasibility Study, we are evaluating the possibility of listing our German subsidiary later this year as part of our efforts to fund the development of a lithium fluoride operation at Zinnwald,' the company said.

The update comes as battery grade lithium carbonate spot prices, cost insurance and freight China, steadied in the US$13,000 - 15,000 per tonne range by the end of December 2018, after falling in June.

Contract prices had remained strong in the fourth quarter 2018, maintaining a premium to spot.

At 9:29am: (LON:BCN) Bacanora Minerals Ltd Ord Npv di share price was 0p at 21.75p