Bacanora raises £7.7m in placing with BlackRock

Shares in lithium company Bacanora Minerals are up more than 9% after it confirmed raising about £7.7m through the placing of 9.75m units at 79p each with certain funds and accounts managed by BlackRock.

Bacanora is developing the Sonora Lithium Project in northern Mexico.

It said each placing unit comprised one new common share and 0.3 of one common share purchase warrant. As such, 9.7m placing shares and 2.93 million placing warrants were issuable under the placing.

Each whole warrant was exercisable into one common share at a price of 79p at any time subsequent to 25 July, but on or before 30 September.

If the placing warrants were fully exercised, the total proceeds received by Bacanora would be about £10 million.

"The placing is in line with the company's strategy to increase the institutional representation of its shareholder register and follows the securing of Bacanora's first major institutional investor in November 2015," Bacanora said in a statement.