Bacanora Lithium PLC’s (LON:BCN) partner and major shareholder Ganfeng has made an offer to buy out the mining group.
The Chinese giant says it will offer 67.5p per share, a 45% premium to the close yesterday and valuing AIM-listed Bacanora at £259mln, including shares to be issued through a recent placing.
Ganfeng already has a 29% stake in Bacanora and also a 50% stake in Sonora, the junior miner’s lithium deposit in Mexico.
Independent directors at Bacanora said the offer is attractive and that they would expect to recommend once it becomes a formal proposal, something that requires approval from the Chinese authorities.
Ganfeng and Bacanora have a joint venture at Sonora that is now working on the construction of a mine that will produce 35,000 tonnes a year of battery-grade lithium when fully commissioned.