- NextView Capital - a Chinese institutional fund management group focused on new technologies and energy - has agreed to acquire a 19.89% interest in Bacanora Minerals through a placing of 32,976,635 common shares at 94.53p apiece.

Bacanora said the £31,172,813 capital raised by the placing would be used for the continued development of the company's Sonora lithium project.

Bacanora has agreed to supply NextView with 5,000tpa of lithium carbonate produced at the Sonora project in Mexico on a best endeavours basis at market prices from its stage 1 of production, with a firm commitment to supply 8,000tpa of lithium carbonate during stage 2 and a best endeavours promise to supply a further 7,000tpa during stage 2.

NextView has also agreed to employ its reasonable endeavours to assist the company in procuring project debt financing for Sonora.

The strategic investment and offtake agreement follows the completion of a feasibility study at Sonora which confirmed the positive economics and favourable operating costs of a 35,000 tonnes per annum battery grade Li2CO3 operation at Sonora: estimated pre-tax project net present value of US$1.253bn, an internal rate of return of 26.2%, and life of nine operating costs of US$3,910/t of lithium carbonate.

At 8:22am: [LON:BCN] Bacanora Minerals Ltd Ord Npv di share price was +8.5p at 104.5p

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