14m is just the cash payout. Ganfeng are obligated to purchase Sonora production as part of the deal 50% at first stage 75% thereafter at market rates.
Ganfeng also paying 22.5% of mine costs (so $100m) and Bacanora have funding through RK for another $120m or so, so they’re over halfway to the desired funding amount.
If they can get to production stage (always a risk with junior miners), they should be fine. I flitter from confident to not so confident with Bacanora and if I could skip 5 years into the future (and come back) this would be the stock I’d check.
Do you know if Bacanora are involved in the production of lithium hydroxide? It seems the Sonora project currently only produces lithium carbonate (link). The reason I ask is that the MF article states that due to its ease of processing for battery applications lithium hydroxide could be more widely used in future.
From my own research it suggests the production of carbonate only, as it seems that the factory equipment and know-how are tweaked towards this process.
How easy it would be to modify production, I do not know unfortunately
There’s not been much activity for a while until recently. Since start of October, share price has shot up by around +72.83% for the month and +9.8% on the year.
Should also be looking at $ALUS the company’s lithium batteries are by far the least expensive and the most efficient. And based in the battery hub, Norway with all the supply agreements they need. Not currently on FT though…
