TIDMKDNC
RNS Number : 0431C
Cadence Minerals PLC
10 April 2017
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Battery Grade Lithium Carbonate Offtake Signed at Sonora Lithium
Project
Cadence (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that
Bacanora Minerals Plc ("Bacanora") has entered in into offtake and
strategic partnership (the "Agreement") with Hanwa Co., LTD.
("Hanwa"), a leading Japan-based global trading company and one of
the larger traders of battery chemicals in the Asian region, with
reported net sales of more than Yen1,500 billion in 2016. The full
Bacanora release is available at:
http://ir.euroinvestor.com/Tools/newsArticleHTML.aspx?solutionID=2482&customerKey=bacanoraminerals&storyID=13572044&language=en
Cadence holds an interest in the Project in Mexico through its
19.12% holding in Bacanora and the joint venture interests of 30%
in each of Megalit S.A. de CV and Mexalit S.A. de CV as fully
described below.
Highlights from Bacanora Release:
-- Off-take Agreement for up to 100% of battery grade lithium
("Li(2) CO(3) "), pricing will be in line with global Li(2) CO(3)
at the time of production.
-- Hanwa to purchase 70-100% of Li(2) CO(3) produced from Stage
1 production schedule of 17,500 tonnes Li(2) CO(3) per annum.
-- Hanwa has the option to increase this offtake to 100% of the
product from Stage 2 (35,000 tonnes Li(2) CO(3) per annum).
-- Hanwa to initially invest approximately GBP10 million for 10%
equity investment in Bacanora, with option to increase this
interest to 19.9%.
-- Hanwa has committed to assist Bacanora in securing the debt
financing component of the funding package required to enable
development to commence following completion of the Feasibility
Study.
-- Preliminary introductions made to date by Hanwa have been
positive first steps towards securing such additional future
financing requirements.
Commenting, Kiran Morzaria, Chief Executive Officer of Cadence,
said:
"This strategic partnership is a pivotal moment in the
development of the Sonora lithium project. The off-take agreement
for up to 100% of battery grade lithium carbonate, not only
validates the production process, but also reduces the risk profile
and importantly means that the Project has a strong strategic
partner that provides an excellent foundation for project debt
financing, construction and production."
"Both our key investments have progressed exceptionally over the
last year, with the Sonora lithium project advancing from
pre-feasibility to off-take and the Cinovec project in Europe
advancing towards pre-feasibility, which is due in April 2017."
The Sonora Lithium Project and Details of Cadence's
ownership:
Cadence owns a direct interest of 19.12 % of Bacanora. The
Sonora Lithium Project is comprised of the following lithium
properties:
- La Ventana, La Ventana 1, and Megalit concessions, which are
100 percent owned by Minera Sonora Borax S.A. de C.V.("MSB"), a
wholly-owned subsidiary of Bacanora; Cadence, through its direct
interest of 19.12 % of Bacanora, has an indirect interest in these
concessions of 19.12%.
- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions,
which are held by Mexilit S.A. de C.V. ("Mexilit"). Cadence has a
43% direct interest in Mexalit through its Joint Venture with
Bacanora, and when combined with Cadence's direct interest of 19.12
% in Bacanora, has a total economic interest in Mexalit of 43%.
- The Buenavista, and San Gabriel concessions, which are held by
Megalit S.A de C.V ("Megalit"). Cadence has a 30% direct interest
in Megalit through its Joint Venture with Bacanora, and when
combined with Cadence's direct interest of 19.2% in Bacanora, has a
total economic interest in Megalit of 43%.
Qualified Person:
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance).
For further information please
contact
Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD
& Broker) +44 (0) 207 220 1666
James Joyce
James Bavister
Square1 Consulting +44 (0) 207 929 5599
David Bick
Brian Alexander
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world.
The planet needs rechargeable batteries on a global scale -
upcoming supersized passenger vehicles, lorries and buses - require
lithium and other technology minerals to power their cells. Cadence
is helping find these minerals in new places and extracting them in
new ways, which will meet the demand of this burgeoning market.
With over GBP35 million vested in key assets globally, Cadence is
helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining
projects. Its primary strategy is taking significant economic
stakes in upstream exploration and development assets within
strategic metals. We identify assets that have strategic cost
advantages that are not replicable, with the aim of achieving lower
quartile production costs. The combination of this approach and
seeking value opportunities allows us to identify projects capable
of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing,
fund management and deal structuring knowledge and experience, that
is supported by access to key marketing, political and industry
contacts. These resources are leveraged not only in our investment
decisions but also in continuing support of our investments,
whether it be increasing market awareness of an asset, or advising
on product mix or path to production. Cadence Mineral's goal is to
assist management to rapidly develop the project up the value curve
and deliver excellent returns on its investments.
This information is provided by RNS
The company news service from the London Stock Exchange
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