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Bacanora Lithium recieves first approval required for strategic investment by Ganfeng Lithium, China’s largest lithium producer

Monday, August 5th, 2019

Bacanora Lithium plc (AIM: BCN), the London traded lithium company, is pleased to provide an update on its Investment Agreement and Offtake Agreement (‘the Strategic Investment’ or ‘the Agreements’) with leading global lithium company Ganfeng Lithium Co., Ltd. (“Ganfeng” or “GFL”). As announced on 28 June 2019, the signed Agreements have been submitted to the relevant authorities in China for approval and completion.  The first of the approvals, from the PRC Ministry of Commerce, has now been received.  The remaining two approvals required ahead of completion of the Strategic Investment are currently being processed by Ganfeng and further updates will be provided as the approval process proceeds.

Completion of the Strategic Investment would form a major part of the Company’s finance package for an initial 17,500 tonnes per annum lithium carbonate operation at the large scale, high grade Sonora Project in Mexico.  For further details of the Agreements please refer to the Company’s announcement on 20 May 2019, however the key terms of the Strategic Investment are provided below:

Summary of Key Terms of the Ganfeng Strategic Investment
·    GFL to acquire 29.99% of Bacanora
·    GFL to acquire 22.5% of Sonora Lithium Ltd (“SLL”), the holding company for the Sonora Lithium Project
·    Additional long-term offtake at a market-based price per tonne
o  50% of Stage 1 lithium production
o  Up to 75% of Stage 2 lithium production

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