Tag Archives: peter secker

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Bacanora Lithium (AIM: BCN) (the “Company” or “Bacanora”) has commenced initial site activities at the Sonora Lithium Project (the “Project”), located in Mexico. This milestone follows the Company’s successful US$65 million fundraise last week, which, in combination with existing cash and the undrawn portions of its debt financing facility, will finance Bacanora’s 50% share of the capital cost required for Stage 1 of the Project.

Bacanora is building the Project together with its partner, Ganfeng Lithium Co., Ltd. (“Ganfeng”), the world’s largest lithium metals producer. Both parties are working towards a development timetable for Sonora, with scheduled production of battery grade lithium products in 2023.

Initial site works

The Company has engaged a local specialist ecological services company based in Sonora to begin initial site works. These activities will involve the rescue and removal of surface vegetation and topsoil in the area required for the construction of the lithium processing plant. These activities are being performed in compliance with its obligations pursuant to its environmental approvals. The excavated material will be stockpiled at a location adjacent to the plant site and will be stored in an approved manner in order that it can be incorporated into the future project rehabilitation schedule. A team of 15 personnel has been deployed to site, including two ecologists, a biologist, and a forestry engineer. The majority of these personnel reside in the local area. In addition, the Bacanora construction team has commenced the preparatory work required to upgrade the main access road to the site in preparation for providing access for heavy equipment to commence the bulk site earthworks later in the year. The tender process for this work has commenced and is focusing on using local construction and engineering groups from the surrounding Sonora region. Work is also currently underway to commence the tender process for the site accommodation and ancillary facilities, scheduled to be commissioned by the end of Q2, 2021.

Engineering works

Transmission of engineering drawings and documentation from Ganfeng and its equipment suppliers in China has commenced and the final engineering packages will be delivered to Bacanora in Q2, 2021. In addition, Bacanora is working with its principal equipment suppliers to finalise a schedule for the delivery of the larger items of processing equipment for delivery in 2022.  As part of this schedule, orders for the larger items of process equipment that have delivery schedules of over 12 months will be placed during Q3, 2021 for delivery to site in late 2022.

Community Engagement

Bacanora continues to work with the Sonora Government and the local municipalities in the region of the mine site. With the critical step of project funding now completed, the Company will continue to develop its community engagement strategy on education, training and development of local workforce as the Project transitions through the development stage into operations in 2023.

The Company’s latest presentation is also available for download here: https://www.bacanoralithium.com/investor-relations/restricted-company-presentations/

Link here for the full BCN announcement: https://www.londonstockexchange.com/news-article/BCN/commencement-of-early-site-works-at-sonora/14859200

Peter Secker, CEO of Bacanora said:  “I am delighted to announce Bacanora has commenced initial site works at the Sonora Lithium Project, located in Mexico. This milestone cements Bacanora’s transition into a mine-development company as it looks to fulfil its ambition of becoming a lithium producer in 2023. I look forward to updating the market with further positive progress reports as we build the Sonora Lithium Project in conjunction with our strategic investor and project partner, Ganfeng.” 

Cadence CEO Kiran Morzaria added:  “Today’s announcement not only marks a significant step towards Bacanora’s ambition to become a lithium producer in 2023, but also reflects positively on our ambitions for the Mexalit and Megalit joint ventures with Bacanora, which are part of the Sonora 20-year mine plan. We look forward to further news on the mine development.”

Cadence Minerals – Holdings in Mexalit and Megalit: 

Bacanora is a lithium exploration and development company. Cadence holds 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which form part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico.

This news release is not for distribution to United States Services or for Dissemination in the United States.

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Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding Cadence’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of Cadence. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence cannot assure investors that actual results will be consistent with such forward-looking statements.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update published today by Bacanora Lithium (AIM:BCN) (“Bacanora”), both on the Lithium market, and on its activities at the Sonora Lithium Project in Mexico (‘Sonora’ or the ‘Project’) in light of the ongoing Covid-19 pandemic.

Cadence Minerals – Holdings in Mexalit and Megalit:

Bacanora is a lithium exploration and development company. Cadence holds 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which form part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico.

Sonora Operations

The Pilot Plant has completed the bulk sampling required for the Sonora plant and engineering designs. These samples have been sent to the Company’s relevant partners in the USA and China for optimisation of the final designs.

Engineering

All engineering work is now being undertaken off-site. GR Engineering (“GRES”) has completed its concentrator design work and will integrate this into the overall project scope. Importantly, the Company’s joint venture partner, Ganfeng Lithium (“Ganfeng”), has also completed its flow sheet design testwork for the production of battery grade lithium from the samples provided by the Pilot Plant; Ganfeng is now integrating these results into a larger scale design, and remains on schedule to deliver its final engineering packages at the end of Q4 2020. Lastly, Ganfeng is working with its equipment suppliers to determine equipment delivery times and process guarantees.

Bacanora therefore remains on schedule to commence initial site works at Sonora in H1 2021, subject to completion of financing, which would enable commencement of production at the plant in 2023. This timeframe coincides well with the anticipated increase in lithium demand from European, Asian and US electric vehicle manufacturers expected that year*.

Covid-19 and the Mining Industry in Sonora

The number of new Covid-19 cases continues to fall in the Sonora district of Mexico and lockdown restrictions are slowly being lifted. The Company continues to monitor the situation closely, with the health and safety of its employees and communities remaining its top priority.

New health and safety protocols and social distancing will remain in place at the Pilot Plant for the foreseeable future but will not impact the Company’s ability to continue to work on site. Most of the larger scale mining operations within the Sonora district, are now back in production and Bacanora will have employees back in the field in October to survey site access roads in preparation for site access works in Q2 2021.

Recently, the federal government implemented austerity measures as a result of COVID-19, one of which is the restructuring of several undersecretary positions in various sectors, including that for mining.  The functions, staff, and responsibilities of the areas that reported to the undersecretary for mining remain intact, and will continue to function as normal, under the responsibility of the Secretariat of the Economy.  President Andrés Manuel López Obrador (“AMLO”) and the Secretariat of the Economy have consistently supported investment in the mining sector and specifically projects with downstream applications, such as Bacanora’s Sonora Lithium Project. This government wide austerity measure does not represent a change in those policies.

Lithium Market

Recent forecasts from Chile, the world’s largest producer of downstream battery grade lithium products, indicate that, as electric vehicles sales in Europe and China continue to rebound post the Covid-19 downturn, the electric car industry is forecast to dominate demand for lithium over the next ten years. By 2030, EV demand will account for more than 75% of consumption, up from 30% in 2019. As a result, demand for lithium for electric vehicles would surge to 1.4 million tonnes by 2030**, almost a five-fold increase from the current 300,000 tonnes of demand in 2019***.

* https://www.iea.org/reports/global-ev-outlook-2020  

** https://uk.reuters.com/article/chile-lithium/electric-cars-to-account-for-79-of-lithium-demand-by-2030-chile-idUKL1N2FS22Q  

*** http://coinnews.tv/lithium-outlook-2019-a-transition-year-ahead/  

The full Bacanora release can be found at: https://www.londonstockexchange.com/news-article/BCN/sonora-operational-update/14680960

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. 

– Ends –

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) notes the update published today by Bacanora Lithium (AIM:BCN) (“Bacanora”), both on the Lithium market, and on its activities at the Sonora Lithium Project in Mexico (‘Sonora’ or the ‘Project’) in light of the ongoing Covid-19 pandemic.

Cadence Minerals – Holdings in Mexalit and Megalit:

Bacanora is a lithium exploration and development company. Cadence holds 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which form part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico.

Lithium Market and Project Development

Whilst demand for internal combustion vehicles has been significantly impacted by the spread of Covid-19 and a general economic slowdown, electric vehicle (“EV”) demand in Europe increased over 50% during first quarter 2020*. In addition, automotive companies have recently outlined plans to spend more than US$140** billion on EV production. This is an industry shift that will require producers of specialist materials and metals for lithium batteries to dramatically lift output. As a result, lithium demand is anticipated to grow 800% by 2030. Bacanora continues to prioritise its development schedule for Sonora despite Covid-19 limitations, with a goal of being able to complete financing for the Project and initiate site works in H1 2021.  This timetable will enable Bacanora to commence lithium deliveries to its offtake partners, Ganfeng Lithium (“Ganfeng”) and Hanwa Corporation, in 2023. Ganfeng remains fully committed to the advancement of Sonora’s development and continues to progress its investment schedule at the Sonora project level.

Sonora Operations

In Mexico, the Sonora government continues to maintain measures to prevent the spread of Covid-19 which includes, amongst other measures, the closing of schools and all non-essential business operations as well as cancelling events of more than 10 people. Accordingly, Bacanora’s Hermosillo pilot plant (“pilot plant”) was placed in care and maintenance in late March 2020 after shipping samples to its engineering partners in the USA and China in order to maintain the Front End Engineering Design (“FEED”) schedule. The pilot plant will remain closed until conditions are considered safe and the Government lifts its restrictions.  It is currently anticipated that the pilot plant will re-open in June 2020.

Bacanora CEO Peter Secker commented: “The entire team at Bacanora and our partners continue to work as best as we can during this pandemic. We remain fully focussed on progressing the final parts of the detailed design work for our flagship Sonora Lithium Project, located in Mexico. Bacanora also boasts a strong cash position and benefits from the support of its cornerstone shareholders, who are globally significant players in the electric vehicle industry.  The Company’s strategy remains the same and with the goal to deliver first product to its off-take partners in early 2023, importantly coinciding with the expected significant growth in EV demand.”

Cadence CEO Kiran Morzaria commented: “Our thoughts are with the Bacanora team as they work through the Covid-19 pandemic. We note Bacanora’s update on the Sonora development timetable, and in particular the Lithium market in general, detailing the forecast increase in demand to meet the ramp-up in EV production.”

(* www.euractiv.com/section/electric-cars/news/electric-car-sales-in-europe-jumped-57-in-q1-2020/

**www.bloomberg.com/amp/news/articles/2020-05-11/to-avoid-battery-metal-pinch-carmakers-urged-to-invest-in-mines )

The full Bacanora release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/14555542.html

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

– Ends –

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.