23rd May 2016 08:58
LONDON (Alliance News) - Bacanora Minerals Ltd on Monday said it has raised GBP7.7 million through placing 9.8 million units at a price of 79 pence per unit with "certain funds and accounts managed by BlackRock Inc", securing its second major institutional investor.
Shares in Bacanora were up 4.9% at 85.00 pence on Monday morning.
The miner, which is developing the Sonora lithium project in northern Mexico, said each of the units were equivalent to one share in the company and 0.3 of a share purchase warrant. Each warrant is exercisable into one share at a price of 79 pence at any time after July 25 and on or before September 30, the company said.
As such, a total of 9.8 million shares are issuable under the placing, Bacanora said, along with 2.9 million warrants. If all the placing warrants are fully exercised, Bacanora will receive total proceeds of around GBP10.0 million from the placing. The Blackrock funds will hold 9% of Bacanora, or 11% if all warrants are exercised.
Bacanora said the placing was in line with its a strategy to increase "the institutional representation of its shareholder register and follows the securing of Bacanora's first major institutional investor in November 2015", referring to Rare Earth Minerals PLC, which holds 17.2%.
Bacanora said the funds will be invested in its lithium project in Mexico, and said the feasibility study at the site is due for completion in the first quarter of 2017.
"We are very pleased to welcome Blackrock, our second major institutional investor, to our shareholder register. In our view, raising GBP7.7 million (with the potential to increase this to an aggregate of GBP10.0 million) at the prevailing share price in current market conditions is testament to the potential of the sonora lithium project to be a major supplier to the lithium market, as highlighted by the recent pre-feasibility study," said Chief Executive Peter Secker.
By Hannah Boland; [email protected]; @Hannaheboland
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