JOHANNESBURG (miningweekly.com) – TSX-V- and Aim-listed project developer Bacanora Minerals has raised $11.2-million for its Mexico-based Sonora lithium project, which is considered one of the largest lithium resources worldwide.

Bacanora raised the funds through a share placement of 9.75-million shares at 79p a share, with certain funds and accounts managed by global asset manager BlackRock.

"We are very pleased to welcome BlackRock, our second major institutional investor, to our shareholder register,” said Bacanora CEO Peter Secker, adding that the funds raised at the prevailing share price was testament to Sonora’s potential to be a major supplier to the lithium market.  

“BlackRock is not only gaining exposure to Bacanora at an exciting time in its development, but also to the attractive demand/supply dynamics of the global lithium market,” he said.

Secker further noted that, owing to lithium’s key role in highly innovative industries, including smartphones, electric vehicles and energy storage applications, supply was likely to struggle to meet demand in years to come, and Bacanora was well placed to close the expected shortfall in supply.

The Sonora lithium project contained an estimated indicated mineral resource of 259-million tonnes, averaging 3 200 parts per million (ppm) lithium for 4.5-million tonnes of lithium carbonate equivalent (LCE). The project’s inferred mineral resources stood at 160-million tonnes averaging 3 200 ppm lithium for 2.7-million of LCE.  

A fully funded feasibility study, which was due for completion in the first quarter of 2017, was under way as part of the company's strategy to deliver a two-phase openpit mine and lithium carbonate processing facility with a mine life of over 20 years.

The results of prefeasibility study, announced on March 3, highlighted the attractive economics associated with delivering on this strategy and, in tandem with the feasibility study, discussions were continuing with various Asian offtake partners, banks, debt providers and strategic investors.