22nd Oct 2014 08:50
LONDON (Alliance News) - Bacanora Minerals Ltd said Wednesday it has appointed Hatch Pty Ltd as its engineering consultant for both its Sonora Lithium Project and Magdalena Borate Project, both in northern Mexico.
Hatch will assist with the design of a lithium compound plant at Sonora, which will be capable of processing 50,000 tonnes per year and contribute to the mining operation for the project's indicated mineral resource of 3.3 million tonnes of lithium carbonate equivalent, according to Rare Earth Minerals PLC, which has a 11.3% stake in Bacanora, and a 38% interest in the Sonora project with Bacanora, its joint venture partner in Mexico
Hatch were chosen for the project due to a recent engineering, procurement and construction management contract it completed for the Jiangsu lithium plant in China owned by Australian listed Galaxy Resources Ltd. Hatch developed the plant from a concept design to a completed facility in less than three years and has project experience in over 150 countries with more than USD35 billion in projects currently under Hatch's management, Rare Earth said.
Bacanora and Rare Earth did not say how Hatch will contribute to the Magdalena project, or the financial details of the contract.
"Hatch brings timely and invaluable experience to the project at this key point in its development. Hatch has worked with some of the largest lithium producers in the world and by joining the team at this juncture, we believe Hatch will help us deliver the most cost effective solution for the build out and commercialisation of the Sonora Lithium project," said Rare Earth Chairman David Lenigas.
"Hatch has extensive experience in the lithium and boron sectors, working with some of the largest producers in the world. This experience will be invaluable as we continue to progress both our projects," added Bacanora Chairman Colin Orr-Ewing.
Shares in Bacanora are trading up 15% at 1.13 pence Wednesday morning, whilst Rare Earth shares were up 6.8% to 1.35 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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