Chinese producer Ganfeng Lithium reached a non-binding heads of terms deal with Bacanora Lithium on Monday May 20, under which it will purchase 29.99% of Bacanora's equity at a cost of ?14.4 million ($18.31 million) and will have the chance to acquire 22.5% of Bacanora subsidiary Sonora Lithium for a cash payment of ?7.6 million.
Bacanora is based in the UK and listed on The Stock Exchange in London.Following its initial investment, the Chinese lithium producer will also have the option to acquire as much as 50% of Sonora Lithium.In exchange, Ganfeng will gain offtake rights to 50% of the expected 17,500 tonnes per year of the total stage 1 production of lithium carbonate by Sonora Lithium at its operation in Mexico. This was scheduled to begin production in 2021.Under the same agreement, Ganfeng will have the option to increase the offtake to as...