Bacanora reassures shareholders over proposed law in Mexico

Lithium development company Bacanora updated the market in light on new legislation around lithium mining announced by the government of Mexico on Monday.

The AIM-traded firm said that the government had recently submitted a proposal for constitutional changes to Mexico’s federal congress, with the primary objective of strengthening the state electricity company.

As part of the proposed reforms, future lithium concessions would be held by the state.

Bacanora said the new reforms would not affect lithium licenses already granted to private companies, provided exploration work had already started, and all license requirements had been met.

“It is the view of Bacanora that it has met these requirements including the commencement of early construction activities at the Sonora lithium project,” the board said in its statement.

“The company will keep shareholders advised on any further developments.”

At 1441 BST, shares in Bacanora Lithium were down 2.2% at 66.01p.