TIDMKDNC
RNS Number : 0313E
Cadence Minerals PLC
03 May 2017
Cadence Minerals Plc
("Cadence Minerals" or "Cadence")
Macarthur Minerals Enters MOU to Acquire Lithium Projects
Cadence Minerals Plc (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
report that Macarthur Minerals ("Macarthur" or the "Company") in
which Cadence currently owns a 16.3% shareholding, has announced
that it has entered into an agreement to acquire the Marble Bar
Lithium Project and Pippingarra Lithium Tantalite Project in the
Pilbara region of Western Australia ("Projects") through a 50:50
joint venture with Southern Hemisphere Mining Ltd (ASX:
SUH)("SUH").
The full Macarthur announcement can be found at:
http://web.tmxmoney.com/article.php?newsid=6222707380115616&qm_symbol=MMS
Acquisition of the Projects will expand Macarthur Minerals'
interests in hard rock lithium acreage in Western Australia to over
2,400 km(2) through its majority shareholding of Macarthur
Australia Limited.
THE PROJECTS
Macarthur Minerals and SUH have jointly entered into a
Memorandum of Understanding ("MOU") with Great Sandy Pty Ltd
("Great Sandy"), a private Australian company controlled by
well-respected Western Australian prospector, Denis O'Meara, which
will serve as a framework for a Purchase Agreement, to acquire the
Marble Bar Lithium Project and the Pippingarra Lithium Tantalite
Project. The location of the Projects is shown in Figure 1.
Marble Bar Lithium Project
The Marble Bar Lithium Project consists of four granted
Exploration Licences (E45/4669, E45/4690, E45/4724 and E45/4746)
covering 368 km(2) located between 10 and 50 km east of Marble Bar
in the East Pilbara region of Western Australia.
Marble Bar is located 200 km south east of Port Hedland and
approximately 100 km east of the emerging world class Pilgangoora
and Wodgina lithium province.
Reconnaissance exploration conducted in 2016 by Denis O'Meara
and geologist, Brian Richardson, on behalf of Great Sandy,
discovered new lithium bearing pegmatite swarms within a small area
of E45/4669. Most of the remaining tenement area is underexplored.
The north-south striking mineralized pegmatites occur within a 4 km
wide corridor extending on the surface for over 3.5 km. Individual
pegmatites were traced for up to 1 km in outcrop with widths of
between 5 and 15 m. The lithium minerals, spodumene and lepidolite
are abundant in most pegmatites with spodumene dominant in the
northern pegmatites. All pegmatites dip shallowly to the east.
Great Sandy collected 79 rock chip samples from the outcropping
pegmatites and adjacent granitic country rock returning peak values
of 3.72% Li(2) O and 3.32% Li(2) O. Thirty of the collected samples
returned assays better than 1% Li(2) O (Table 1, Table 4 and Figure
4). Several samples contained visibly abundant spodumene with the
mineralogy confirmed by X-ray powder diffraction ("XRD") and
petrographic analysis (Figure 2).
The Marble Bar Lithium Project contains the first reported
significant spodumene discovery in the East Pilbara outside of the
Pilgangoora-Wodgina area. It is the first discovery of
spodumene-rich pegmatites within a granitic host rock. This
discovery has opened up for exploration the entire Marble Bar
Lithium Project area within the granites of the Mt Edgar batholith
and importantly also within the nearby greenstones.
The Marble Bar Lithium Project is underlain by granites and
gneisses of the Mt Edgar batholith, an early Archaean granitic
complex composed of gneisses, granite, mafic enclaves and granitic
pegmatites. Along the intrusive western contact of the batholith
are strongly deformed mafic and ultramafic rocks of the Warrawoona
Group within E45/4724. The Marble Bar Lithium Project is situated
adjacent to the Moolyella tin field and near to the Moolyella
Adamellite, a late Archaean (younger) granite intrusion. This
intrusion is believed to be the ultimate source of all the tin,
tantalum and lithium in the district (Figure 3).
In November 2016, Australian Securities Exchange ("ASX") listed
Blaze International Limited (ASX: BLZ) conducted a limited reverse
circulation ("RC") drilling program on E45/4669, consisting of 12
shallow holes, 702 m, targeting only three of the known mineralised
pegmatites. Drilling returned significant lithium results within
broad low-grade zones of mineralisation. Lithium was intercepted in
most holes with seven holes containing narrow but higher grade
zones. Hole MBRC006 returned one of the best intercepts of 14 m @
0.58% Li(2) O from 0 to14 m including a higher-grade interval of 3
m @ 1.48% Li(2) O from 8 m. The drilling confirmed the shallow 30 -
35 degree easterly dip to the pegmatites and indicated that the
pegmatites are often associated with broad mineralized alteration
haloes indicating a large and pervasive mineralizing event (Tables
2 and 3). All the rock chip and drill assay results are contained
in Tables 4 and 5.
A Qualified Person for the purposes of NI 43-101 has not done
sufficient work to classify the historical estimate as a current
Mineral Resource or Mineral Reserve and Macarthur is not treating
the historical estimate as a current mineral resource or mineral
reserve. As such, the historical estimates should not be relied
upon.
Planned immediate exploration will focus on locating other
mineralized pegmatite swarms within the 368 km(2) project area
focusing initially on the extensive area of strongly deformed
greenstone within E45/4724 (Figure 5). This work will involve
geological mapping and rock sampling followed by RC drilling of all
priority areas.
Pippingarra Lithium Tantalite Project
The Pippingarra Lithium and Tantalite Project consists of two
Exploration Licence Applications (E45/4691 and E45/4759) covering
181 km(2) located 27 km south east of Port Hedland.
The tenements are underlain by a large area of the Archaean
Strelley Granite rimmed by sediments and volcanics of the Mallina
Formation and the Louden Volcanics. The project also contains a
regional north east trending structure sub-paralleling the nearby
Tabba Tabba Shear, which hosts the Tabba Tabba tantalite deposits
and historical mining centre (Figure 6).
The tenements surround the Pippingarra quarry which was recently
mined for feldspar and muscovite contained within a large pegmatite
body. A small tantalite, columbite, beryl mine also operated within
the excised tenements in the 1950-1960s. The Bore Creek alluvial
tantalite prospect occurs in the south-east corner of the tenement.
Extensive areas of prospective pegmatite occur within the project
area.
The Pippingarra Lithium Tantalite Project is prospective for
pegmatite hosted lithium and tantalite mineralisation similar to
that discovered by Great Sandy at the Marble Bar Lithium Project.
Initial targets will be undiscovered pegmatites that are the source
for the alluvial tantalite at the Bore Creek prospect and the
mapped pegmatites that occur straddling the regional north east
structure. Initial exploration will commence following grant of
both tenements.
MEMORANDUM OF UNDERSTANDING
The key terms of the MOU are:
-- $30,000 has been paid to Great Sandy equally by Macarthur
Minerals, through its wholly owned subsidiary, Macarthur Marble Bar
Lithium Pty Ltd("MMBL") and SUH on signing the MOU, which is
exclusive.
-- MMBL and SUH will enter into a 50:50 contributing Joint
Venture Agreement for purchase of 100% of the Projects ("Joint
Venture") within 60 days. The Joint Venture Agreement will be on
standard industry terms and MMBL will be appointed project
manager.
-- The Joint Venture will enter into a Purchase Agreement for
the Projects within 60 days on completion of satisfactory due
diligence and obtaining regulatory approvals.
-- The purchase price for the Projects by the Joint Venture is:
- Within 60 days of entering into the Purchase Agreement, the
joint venturers will each issue A$125,000 of shares in each of
their respective companies, Macarthur Minerals and SUH, to Great
Sandy.
- Within 6 months of entering into the Purchase Agreement, the
joint venturers will each issue A$250,000 of shares each in their
respective companies, Macarthur Minerals and SUH, to Great Sandy.
Following this final payment, the Joint Venture will receive 100%
ownership of the Projects.
- Great Sandy will retain a 2% gross production royalty.
- The number of shares to be issued for the purchase price is to
be calculated using a 5-day Volume Weighted Average Price for each
Macarthur Minerals and SUH prior to the issue of shares.
The Purchase Agreement is subject to regulatory and TSX-V
approval, if required.
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
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 GBP40 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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