September 2, 2021: UK-registered explorer and developer Bacanora Lithium has been taken over by the Chinese lithium giant Ganfeng in an improved $391 million offer finalized on August 25.
The original offer, made in May 2021, was for 67.5 pence ($0.93) in cash per share, and this was increased to 73.6 pence ($1.10) in the final offer, which includes cash and shares in Zinnwald Distribution, another lithium project.
Ganfeng already owned shares in Bacanora, which owns 10 lithium-mining concession areas covering about 100,000 hectares in Sonora, Mexico.
The ‘Sonora Project’ includes seven of the concessions, and has an estimated potential production capacity of 35,000 tonnes a year.
Ganfeng now owns all of it.
In the last four years, Bacanora has built a lithium carbonate pilot plant in nearby Hermosillo to upgrade and process ores from the project. Ganfeng now owns that too, as well as the 35.5% stake Bacanora had in Zinnwald Lithium, a project near Dresden, Germany, which has an estimated production capacity of more than 7,000 tonnes a year.
As the EV race heats up all over the world, the hunt for lithium can only intensify with it, and Ganfeng has been snapping up projects where it can, in June buying a $130 million stake in Goulamina hard-rock mine in Mali, according to Reuters. This was its first investment into lithium mining in Africa, the agency said.
Ganfeng has other projects in China, Australia, Argentina and Ireland.