Hanwa Co., Ltd. issues this press release pursuant to Part 3 - Early Warning Requirements of National Instrument 62-103 with respect to Bacanora Minerals Ltd.
On May 2, 2017, Hanwa acquired 12,333,261 common shares of the Issuer (each, a "Common Share") by way of private placement at a price of £0.825 (Cdn$1.37) per Common Share or £10,174,940 (approx. CAD$16,896,567) in the aggregate. The 12,333,261 Common Shares acquired by Hanwa represent approximately 10% of the 123,332,614 issued and outstanding Common Shares of the Issuer. Prior to this disposition, Hanwa owned Nil Common Shares. Following this acquisition, Hanwa owns an aggregate of 12,333,261 Common Shares of the Issuer which represents approximately 10% of the issued and outstanding Common Shares of the Issuer (non-diluted).
These securities were acquired by way of private placement for investment purposes. Hanwa has been granted a pre-emptive right to participate in future offerings of Common Shares to maintain ownership over 10% of the Common Shares and has also been granted an option to acquire a further 9.9% of the issued and outstanding Common Shares. In the future, depending on economic or market conditions or matters relating to the Issuer, Hanwa may acquire additional securities of the Issuer, dispose of some or all of the securities it now owns or controls, or may continue to hold its current position. The Common Shares of the Issuer are listed on the TSX Venture Exchange under the trading symbol "BCN".
Hanwa has entered into a Purchase and Sale Offtake Agreement with the Issuer pursuant to which the Acquiror has agreed to purchase up to 100% of lithium carbonate produced from the Issuer's Sonora Lithium Project. Hanwa has also been granted a right to present one nominee for election to the board of directors of the Issuer.