- Bacanora Lithium said Friday that initial lithium fluoride samples had been produced at the Zinnwald lithium project.

The samples, produced as part of the feasibility study, were in excess of 99% purity, underlining the potential to be battery-grade lithium, the company said.

The samples would be distributed to potential end users for evaluation test work, with the feasibility study expected to be completed by the second quarter of 2019.

At the Sonora project in Mexico, milestones were recently completed for the front-end engineering design (FEED) and included the receipt of the engineering mass balances and designs for the kiln and crystallisers components; completion of preliminary site earthworks; completion of a new road design for site access; and site visits by proposed energy suppliers.

FEED remained on course to be completed by year end 2018, the company said.

In relation to the resolution of the ongoing dispute over the validity of the 3% gross over-riding royalty purportedly held by the Estate of Colin Orr-Ewing over certain of the company's lithium assets in Sonora, Mexico, Bacanora said it continued to work towards a resolution by mediation, rather than a protracted court process.

'The progress being made at Zinnwald, together with the US$1.25 billion valuation assigned by the December 2017 FS to our Sonora project in Mexico, highlight the huge disconnect that has opened up between Bacanora's current US$55million market capitalisation and the underlying fundamental value of our lithium assets,' said Bacanora CEO Peter Secker.

'With advanced discussions ongoing with potential funders, both at the corporate and project level, for the outstanding finance required to commence the construction phase of an initial 17,500 lithium carbonate operation at Sonora, and excellent progress being made at Zinnwald, we are confident this valuation anomaly will soon begin to close.'

At 10:06am: [LON:BCN] Bacanora Minerals Ltd Ord Npv di share price was +2p at 34.5p

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