- Lithium exploration and development company Bacanora Lithium launched a placing of new shares to raise $100m to fund construction of its Sonora project in Mexico.

Bacanora also announced separately that it had agreed to accept strategic investments from Oman's sovereign wealth fund -- the State General Reserve Fund of Oman -- and project customer Hanwa, worth a combined $90m.

The company said it wanted to start building the project, estimated to cost $460m, in the third quarter of 2018, before fully commissioning it by the first quarter of 2020.

Construction would also be funded with an initial $25m drawdown from a previously-announced $150m debt facility.

The placing was not being underwritten and Bacanora hadn't yet stated a placing price.

The number of placing shares and allocations were at the discretion of bookrunner Canaccord Genuity, with a further announcement confirming such details to be made in due course, Bacanora said.

'The proposed $90m investments from blue chip investors of the calibre of SGRF and our existing strategic partner, global trading company Hanwa, is a clear endorsement of Sonora's credentials to become a low-cost producer of high value lithium carbonate,' chief executive Peter Secker said.

At 1:59pm: [LON:BCN] Bacanora Minerals Ltd Ord Npv di share price was -3p at 78.5p

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