Bacanora Minerals has signed a definitive agreement to acquire a 50% interest in Zinnwald Lithium Project in Germany's Eastern Ore Mountains from energy producer SolarWorld.

Under the agreement, the project will be under the joint operational control of both companies.

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The acquisition is in line with Bacanora Minerals’ strategy to emerge as a global lithium operator with focus on projects with significant value accretion potential.

For this acquisition, Bacanora paid cash consideration of €5m along with a commitment of providing an additional €5m to complete the feasibility study of the project. The feasibility study is expected to take 18 to 24 months.

Bacanora also has the option to acquire the property's remaining 50% stake at a consideration of $30m within a 24-month period.

Bacanora chairman Mark Hohnen said: “Zinnwald is a strategic asset located in close proximity to a thriving market for lithium and energy products. The project fits with both our corporate strategy to develop and operate integrated lithium projects to produce high-value lithium products, and also the commercial overlay which drives our acquisition strategy.

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"Bacanora also has the option to acquire the property’s remaining 50% stake at a consideration of $30m within a 24-month period."

“Sonora continues to sit at the heart of our portfolio and having produced battery grade lithium carbonate from our 100% owned pilot plant ahead of finalising off-take agreements in Asia, we are committed to bringing this into production.

“However, Zinnwald provides us with exposure to an exciting new geographic market and adds hard rock mineralisation to our portfolio. We believe that with an ownership structure that is accretive to Bacanora, Zinnwald will further facilitate our ambition of becoming an independent global lithium operating group.”

The Zinnwald Lithium Project is situated approximately 35km from Dresden in south-east Germany adjacent to the border with the Czech Republic.

The strategic location of the project will also allow the company to have access to Germany's automotive and downstream lithium chemical industries.

Bacanora is a Canadian and London listed minerals explorer that currently develops Sonora Lithium Project, its flagship property in Mexico.