Company Announcements

15 September 2021

Bacanora Lithium plc

("Bacanora" or the "Company")

Issuance of awards under the new incentive scheme and vesting of historic RSUs

Bacanora Lithium plc (AIM: BCN), a lithium exploration and development company, announces the award of Restricted Stock Units ("RSUs") under the new Short Term incentive Scheme ("New RSU Scheme"), approved by shareholders at the 2021 AGM. 

Under the scheme rules and due to the nature of the offer from Ganfeng International Trading (Shanghai) Limited ("Ganfeng") announced on 25 August 2021 (the "Ganfeng Offer"), the Initial Performance Period of 2 years from 1^st January 2020 to 31^st December 2021 has been shortened to 1^st January 2020 to 13^th September 2021.  Further, under the scheme rules all awards shall be split into 50% Cash and 50% RSUs.  All RSUs will automatically vest three years from the date of grant, being 13 September 2024 and the related shares (or cash alternative at the Company's discretion) will be issued on that date. All RSUs have a standard clause of immediate vesting in the event of a change in control, accordingly if the Ganfeng Offer becomes unconditional, then these RSUs will vest on that date. The RSUs are being granted to Directors and Executive Management on the following basis:

The Company also announces the vesting of 205,491 restricted share units ("RSUs") originally granted to Janet Blas, Chief Financial Officer, in September 2018.  In accordance with the rules of the scheme, the RSUs will vest at 67p per Bacanora share, being the higher of the closing price on 10 September 2021 or the 5 day closing VWAP to 10 September 2021.  At its discretion, the Board has elected to pay the net amount due under these awards in cash rather than shares, and accordingly no new shares will be issued. 

For further information please visit www.bacanoralithium.com or contact:

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

Notes to editors

Bacanora Lithium Plc is an AIM-listed (ticker 'BCN') lithium development company. The Company is focused on building, in collaboration with its major shareholder and offtake partner, Ganfeng Lithium (the world's largest lithium metals producer), a 35,000 tonne per annum open pit lithium carbonate operation at its flagship asset, the Sonora Lithium Project in Mexico. The Sonora Lithium Project has 8.8 million tonnes of lithium carbonate (Li₂CO₃) equivalent resources, with an approximate 250-year resource life, as detailed in its December 2017 Feasibility Study.

Sonora Lithium Ltd ("SLL") is the operational holding company for the Sonora Lithium Project and is owned 50% by Bacanora and 50% by Ganfeng Lithium Co., Ltd.  SLL owns 100% of the La Ventana concession. The La Ventana concession accounts for 88% of the mined ore feed in the Sonora Feasibility Study which covers the initial 19 years of the project mine life. SLL also owns 70% of the El Sauz and Fleur concessions. 

In addition, Bacanora owns 35.5% of Zinnwald Lithium Plc (AIM: ZNWD), which in turn owns the Zinnwald Lithium Project and the Falkenhaim, Altenberg and Sadisdorf Licences in southern Saxony, Germany..

Cautionary Statement Regarding Forward-Looking Information

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur.  Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: commodity price volatility; general economic conditions in the UK, the United States, Mexico, Germany and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Important notice

The contents of this announcement have been prepared by and are the sole responsibility of Bacanora.