Bacanora Lithium PLC, which is being acquired by China’s Ganfeng International, said the High Court in London approved its planned capital reduction.
It also received approval from RK Mine Finance Bermuda 3 Ltd (Red Kite), under the terms of the company’s US$150mln senior debt facility, for the capital reduction and the distribution of the shares in Zinnwald Lithium PLC (LSE:znwd). Bacanora owns 35.5% of Zinnwald.
Ganfeng made a recommended cash offer to buy the remainder of Bacanora it didn’t already own, according to an announcement in August. To provide additional value to shareholders, Ganfeng agreed that Bacanora could propose a distribution in specie of the Zinnwald shares to its shareholders.
Bacanora also provided an update on the Sonora project in Mexico.
Lithium process plant engineering, from the Ganfeng team in Xinyu, is aiming for long lead items to be ordered for delivery to Sonora in late 2022 and early 2023.
In addition, Ganfeng is reviewing a lithium plant production rate above the previously planned 17,500 tonnes per year.
The site earthworks engineering packages, which had previously been rescheduled due to Coronavirus (COVID-19)-related travel restrictions, will now start in December, with civil and concrete works scheduled for the first and second quarters of next year.
The project continues to maintain its previously advised delivery schedule, with the first lithium plant commissioning planned for late in the fourth quarter of 2023, said the AIM-quoted company.