Ganfeng Makes Offer for Bacanora Lithium



Bacanora plans to start production from its Sonora lithium project in 2023.
The world’s largest lithium metals producer, Ganfeng Lithium offered to buy the shares it does not already own in Bacanora Lithium for up to $264.5 million. Bacanora Lithium and Ganfeng own the open-pit Sonora Lithium project in Mexico. Ganfeng, which in February announced a plan to raise its stake in Bacanora from 17.41% to 28.88%, will acquire the remaining shares in the company for 67.5 pence per share, according to the companies. The increase in Ganfeng’s stake to 28.88% is expected to be completed shortly, it added.

London-listed Bacanora, which aims to start production from its Sonora lithium project in 2023, was trading down 1.7% at 44.25 pence around noon on May 6, about one-third lower than Ganfeng’s offer price. Ganfeng said in late March it planned to boost production capacity roughly fivefold to 600,000 metric tons (mt) of lithium carbonate equivalent (LCE) annually, without providing a timeframe.


As featured in Womp 2021 Vol 06 - www.womp-int.com