LONDON (Alliance News) - Mexican lithium miner Bacanora Minerals Ltd began trading at a significant premium following its new AIM listing in London, being quoted at almost three times its IPO price by midday Friday.
The Mexican company, which is partnered on the Sonora lithium project in Mexico by AIM-listed Rare Earth Minerals PLC, a 9.93% shareholder in Bacanora, said it raised GBP4.75 million as part of its float, through the issue of 14.4 million shares at 33 pence per share.
The IPO price valued the company at GBP25.8 million. However, the company was trading at 83 pence midday Friday, putting its market cap at closer to GBP65 million.
"The successful listing on AIM and the placing of the new shares provides Bacanora Minerals with the financial resources and the capital markets' platform to accelerate the exploration and development of our two key projects," Non-Executive Chairman Colin Orr-Ewing said in a statement.
In June, Bacanora said the proceeds from the placing would be used to cover the expenses associated with the AIM listing, for working capital, and to fund the preparation of a pre-feasibility study on Bacanora' Magdalena borate project, as well as for the work program to establish the economic potential of the Sonora lithium project.
The Magdalena borate project contains 1.2 million tonnes of rare earth minerals, while the Sonora project is estimated to hold 2.7 million tonnes of lithium.
"Bacanora Minerals continues to deliver on its key project milestones with the next phases of its growth, including the completion of the economic feasibility study of our high grade borate project, and the development of commercial production of boric acid," Orr-Ewing said in a statement. "We continue to explore our lithium resource base at Sonora and look forward to advancing this project further."