Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of Bacanora Lithium (LON: BCN) are edging higher on Wednesday after the company said it has commenced initial site activities at the Sonora Lithium Project in Mexico.
This follows the company's successful $65 million fundraise, which, combined with existing cash and the undrawn portions of its debt financing facility, will finance Bacanora’s 50% share of the capital cost required for stage 1 of the project. The company's partner in the project is Ganfeng Lithium Co.
Lithium development company Bacanora said it has engaged a local specialist ecological services company based in Sonora to begin initial site works that include the rescue and removal of surface vegetation and topsoil in the area required to construct the lithium processing plant.
A team of 15 personnel has been deployed to the site, and the company also commenced the preparatory work required to upgrade the main access road to the area in preparation for providing access for heavy equipment to begin the bulk site earthworks later in the year.
“I am delighted to announce Bacanora has commenced initial site works at the Sonora Lithium Project, located in Mexico. This milestone cements Bacanora's transition into a mine-development company as it looks to fulfil its ambition of becoming a lithium producer in 2023,” Said Peter Secker, CEO of Bacanora.
The company's stock price is trading at 46.50p per share up 1.75% on the day.
Should you invest in Bacanora Lithium shares? Bacanora Lithium shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Bacanora shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .