17th Feb 2020 12:48
(Alliance News) - Bacanora Lithium PLC on Monday said call options on the Zinnwald lithium joint venture in Germany have been cancelled.
Bacanora first set up the 50-50 joint venture in early February 2017 with Solarworld AG. The two own Zinnwald via Deutsche Lithium GmbH.
At the time, London-based Bacanora was given the option to buy the 50% it did not own off Solarworld, while Solarworld had the right to buy back Bacanora's holding for EUR1. These call options have now been cancelled, Bacanora said.
Solarworld is currently in administration, Bacanora noted. Bacanora has committed spending a minimum of EUR1.4 million on the project over the next two years.
Bacanora Chief Executive Peter Secker said: "We welcome the changes to the joint venture agreement and look forward to continuing to work on the engineering and design of the Zinnwald lithium project. We have a strong management team in place in Germany and continue to progress the project and work with potential investors on its financing.
"We fully believe Zinnwald has the potential to become a leading supplier to the European battery industry."
Bacanora's flagship project is the Sonora lithium project in Mexico, where it hopes to begin pre-construction work in 2020.
Bacanora shares were 3.3% higher on Monday at midday in London at a price of 34.09 pence each.
By George Collard; [email protected]
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