Who we are
Bacanora Lithium is an AIM listed company focused on building, in collaboration with its major shareholder and offtake partner, Ganfeng Lithium (the world's largest lithium metals producer), a 35,000 tonne per annum open pit battery grade lithium operation at its flagship asset, the Sonora Lithium Project in Mexico. To capitalise on the fast-growing lithium market, our main focus is to monetise the resources and reserves held in the Sonora Project, which benefits from a large, scalable and high-grade lithium resource with a Measured and Indicated Resource of over 5 million tonnes Lithium Carbonate Equivalent (LCE). This will be initially achieved by developing phase 1 of the mine and processing plant. The Company aims to produce battery grade lithium products for sale through offtake partners, with any additional production sold, in due course, on the open market. The Company published the Sonora Feasibility Study (“SFS”) in January 2018 which showed a pre-tax NPV of US$1.25 billion, 26% IRR and an operating cost of around US$4,000 per tonne. Bacanora has 10 licences covering almost 100,000 hectares in Sonora, Mexico. Of these 10 licences, seven licences were covered by the SFS. The Company has been operating a Pilot Plant in Hermosillo, which has produced high quality battery-grade (>99.5%) lithium products during ongoing test work conducted over the last four years.
The Company also holds a 44.3% investment in Zinnwald Lithium plc (formerly Erris Resources plc), which in turn owns 50% of the Zinnwald Lithium Project (covering 256.5 ha and with a 30 year mining licence to 31 December 2047), the Falkenhain licence (covering 295.7 ha and with a 5 year exploration licence to 31 December 2022), and the Altenburg licence (covering 4,225.3 ha and with a 5 year exploration licence to 15 February 2024). The Zinnwald Feasibility Study (“ZFS”) in June 2019 showed a pre-tax NPV of €428m and IRR of 27%.
Our approach to delivering returns to our shareholders will be predicated on the following;
- The business model is supported by the core competencies of the team.
- Experienced and entrepreneurial leadership team.
- Access to strong technical skills either from our in-house team or network of advisers.
- Emphasis on building strong local organisations and skill sets.
- Commitment to excellence in Environmental, Social and Corporate Governance matters.
- Capital discipline and careful handling of Company resources.