(Yicai Global) May 21 -- Ganfeng Lithium, which has secured supplier deals with Volkswagen and Tesla, will invest in Canada's Bacanora Minerals in an effort to get hold of the latter's lithium project in Mexico.
Ganfeng has agreed to pay GBP14.4 million (USD18.3 million) for a 30 percent stake in Bacanora, the Calgary-based firm said in a statement yesterday. The price per share is GBP25 (USD31.80), a bit below Bacanora's closing price on May 17.
The Chinese firm may further purchase a 22.5 percent stake in Bacanora's Sonora, one of the largest lithium projects worldwide, for GBP7.6 million.
Bacanora's stock price [LON: BCN] rose nearly 6 percent to GBP28.30 yesterday.
Ganfeng's share [SHE: 002460] climbed 1.4 percent to CNY24.3 (USD3.50).
Founded in 2000, the Jiangxi province-based firm has stakes in mines in Australia and Argentina.
Editor: Emmi Laine