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Bacanora Lithium (LON: BCN) shares are trading higher on Monday after the company said approvals were received for the Sonora Lithium (SLL) joint venture with Ganfeng Lithium.
On the 1st of February, the company announced that the completed joint venture agreement with Ganfeng was dependent on receipt of all approvals and consent from the authorities in China and receipt of funds by SLL.
Now that the approvals have been obtained, SLL has received £21.8 million and issued 73.9 million new ordinary shares to Ganfeng, who now owns 50% of the company.
The board of SLL now comprises two Bacanora directors and two Ganfeng appointed directors, with the chairman being from the Bacanora side.
Bacanora, as the operator of the project, has now commenced pre-development work on the site, while Ganfeng will be responsible for leading the engineering and procurement for the battery lithium hydrometallurgical processing plant.
“We are pleased that the approvals have now been received and that Ganfeng has completed the exercise of its option. The finalising of the engineering work with Ganfeng is proceeding well and we look forward to updating the market with further news as we head towards the start of construction,” commented Peter Secker, CEO of Bacanora.
Wang Xiaoshen, deputy chairman of Ganfeng, said: “Sonora is a world-class lithium project and we look forward to bringing it to fruition in tandem with Bacanora.”
Bacanora's share price rose to 45p following the announcement. It is currently trading at 43.90p, up 4.54% on Monday morning.
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