VANCOUVER — Tesla Motors (NASDAQ: TSLA) has signed a conditional agreement with joint venture partners Bacanora Minerals (TSXV: BCN) and Rare Earth Minerals (LSE: REM) in a move to secure long term resources from the juniors’ Sonora lithium project, 180 km northeast of Hermosillo in northern Mexico’s Sonora state.
Once the mine enters production, Tesla would buy lithium hydroxide for the first five years below market prices to feed its Gigafactory in Nevada – a battery producing plant scheduled to open in 2016, and electrify 500,000 of Tesla’s vehicles per year. The agreement is open to a five-year extension.
But first, the partners must advance the project into prefeasibility and raise the money to design and build the mine and processing facility – which was estimated at US$114 million, based on a preliminary economic assessment (PEA) in 2013.
Read the complete article at NorthernMiner.com/news/bacanora-rare-earth-minerals