Calgary, Alberta (FSCwire) - BACANORA MINERALS LTD. ("Bacanora" or the "Company") (TSX-V: BCN and AIM: BCN), the Canadian and London listed lithium company, announces.that it intends to re-commence the process of changing the domicile of jurisdiction from Canada to the UK (the "Re-domicile”).
The Company sought shareholder approval to effect the Re-domicile from Canada to the UK in September 2016. However the requisite approval was not obtained in order to proceed with the Re-domicile. Since listing on AIM in 2014, the Company has been successful in raising funding from the UK Capital Markets and has already added three Global Institutional investors and a major off-take partner to its shareholder base. The Company now intends to raise a significant amount of new debt and equity financing to fund its growth as an international lithium company with new projects in Mexico and Germany and believes that a UK domiciled company with its primary listing on AIM is the best way to achieve this. The Company intends to move its head office and its senior management to the UK, and as a result the Board anticipates that the Re-domicile will result in significant cost and administrative savings for the Company and its subsidiaries (the "Group").
It is intended that the Re-domicile will be effected by means of a plan of arrangement under the Business Corporations Act (Alberta), whereby all existing common shares in Bacanora will be exchanged, through a wholly owned subsidiary ("AcquireCo") of Bacanora Lithium Plc ("Bacanora UK"), for ordinary shares in Bacanora UK, a company that has been established in the UK to become the new holding company for the Group (the "Transaction"). The share capital of Bacanora UK will be substantially identical to the existing share capital of Bacanora and the rights attaching to the new ordinary shares in Bacanora UK will be substantially the same as for the current Bacanora common shares. In all other respects, the Group will remain unchanged as a result of the Transaction.
The Transaction will be subject to customary shareholder, regulatory and Canadian court approval. The Company therefore intends to send to shareholders a management information circular setting out full details of the Transaction and containing notice of a general and special meeting to consider, and if thought fit, approve the Transaction, among other related and annual matters. Prior to the Transaction becoming effective, it is proposed that Bacanora UK will apply for its ordinary shares to be admitted to trading on AIM. Upon the admission of Bacanora UK ordinary shares to trading on AIM, the Company intends to delist its common shares from the TSX Venture Exchange and cancel trading of its common shares on AIM.
Further announcements will be made in due course in relation to the timetable.
