Bacanora Lithium (AIM:BCN) announced on Tuesday a proposed issuance of new ordinary shares to raise gross proceeds of approximately $60 million to finance the construction of Stage 1 of its flagship Sonora lithium project in Mexico.

The capital cost estimated for Stage 1 production of 17,500 tonnes per annum of LCE at the project has been optimised by Bacanora to $407 million from initial estimates of $420 million. In addition to the capital cost, the company estimates that $37 million in additional funding will be needed for working capital purposes.