02 Feb China’s Gangfeng increases stake in Bacanora’s Mexican lithium project to 50%
Chinese mining giant Gangfeng Lithium has signed a new joint venture agreement relating to its investment in Bacanora Lithium’s flagship Sonora project in Mexico.
Ganfeng recently exercised its option to take its stake in the holding company which owns LSE-listed Bacanora’s Mexican project from 22.5% to 50%.
Sonora is regarded as one of the world’s largest known clay lithium deposits, with a measured and indicated mineral resource estimate of over 5 million tonnes of lithium carbonate equivalent (LCE).
Bacanora will remain as the operator of the project, while Ganfeng will be responsible for leading the engineering, procurement and construction activities.
Ganfeng is continuing to integrate its flow sheet for the production of battery grade lithium into the final engineering design and remains on schedule to deliver its final engineering packages to Bacanora during the first half of this year.
“We are pleased that Ganfeng and Bacanora have agreed to terms on the updated joint venture agreements and look forward to completion of Ganfeng’s investment to own 50% of the Sonora Lithium Project,” said Bacanora’s CEO Peter Secker.
“The Sonora Lithium Project is now well placed to be in production in 2023 and delivering battery-grade lithium products into the fast-growing energy storage market.”