Bacanora Lithium Accepts Ganfeng Lithium’s ProposalBy Paloma Duran | Thu, 09/02/2021 - 16:17
Bacanora Lithium has accepted Ganfeng Lithium's offer, which gives Ganfeng more control over the Sonora Lithoum project. CAMIMEX reports that the mining industry has been a great engine for the Mexican economy and that investments are expected to grow. Furthermore, in 2020 the number of postponed projects increased by 44 percent compared to 2019 records.
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Bacanora Lithium has accepted Ganfeng Lithium's offer of US$391 million in exchange for greater control of the Sonora Lithium project in Mexico. Ganfeng increased the value of its original proposal to 73.6 percent per Bacanora share and Germany-focused Zinnwald shares. Previously, the offer was 67.5 percent per share in cash. The deal still needs the approval of the shareholders who own more than 50 percent of Bacanora and the Mexican authorities.
According to forecasts carried out by the sector a production increase as well as in resources destined for exploration will mean investments are going to increase and overcome the undertow left behind by the pandemic. In fact, CAMIMEX, as revealed by President Fernando Alanís, is expecting these investments to go beyond US$5 billion, representing a 41.5 percent growth compared to 2020, when investments totaled US$3.5 million in a ten-year lowest, due to the two-month absolute halt the mining industry experienced during the pandemic. “We think it may be a good year for investments,” reassured Alanís, who also revealed that the sector expects a 14 percent increase in resources destined to exploration projects, equivalent to US$385 million.
In Mexico there are 1,190 mining projects, of which 6 out of 10 are in a "postponement" status, despite the rise in prices and demand for metals. According to CAMIMEX, of all mining projects in 2020, 754 are behind schedule, representing 63 percent of them. The number of deferred mining projects has followed an upward trend, in 2020 it increased by 44 percent compared to the 523 registered in 2019.
Peru’s New Ministry of Energy and Mines, Iván Merino, revealed the country’s new administration under socialist president Pedro Castillo is looking for help from world-renowned mining companies to build a megaproject consisting of a massive railway from Andean mineral deposits to the central coastal areas of the country. Grupo México, alongside Southern Copper and Las Bambas de China, are some of the companies chosen by the Minister.
Vizsla Silver, a mineral exploration and development company, has announced their recommencement of operations in their wholly-owned Panucho property in the state of Sonora, Mexico, a flagship gold and silver deposit. The announcement comes after the July 26 shutdown/suspension due to increased COVID-19 infections in the municipality.