TIDMKDNC
RNS Number : 9108X
Cadence Minerals PLC
30 November 2017
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Corporate & Investment Update
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
update its shareholders in relation its strategic shift as
announced 1 November 2017 and developments in its other
investments.
New Investments
As outlined in Cadence's announcement on 1 November 2017, the
Company was at the advanced stages of reviewing several early stage
lithium assets in well-known lithium jurisdictions.
The Company has now completed due diligence on two of these
assets and anticipates that it will be able to execute binding
investment agreements prior to the end of the year with exploration
beginning in earnest in Q1 next year.
The Company's intent is to earn in at a project level basis
where it can both hold larger stakes and utilise its management
expertise to achieve the high level of returns that we have made on
our portfolio to date.
The Company will announce details of the assets and terms of the
transactions once it has executed the binding investment
agreements.
European Metals Holdings Limited - Equity Raise
European Metals Holdings Limited ("European Metals" or "EMH")
has announced a capital raising of GBP2,281,000 via subscriptions
to predominantly UK based professional investors.
The funds will be used to advance the on-going definitive
feasibility on the Cinovec deposit, Europe's largest lithium
resource, and for general working capital.
Cadence has subscribed for GBP345,000 of new ordinary shares and
after the issue of these shares, which is expected to occur on the
14 December 2017, Cadence will hold approximately 20% of the
enlarged issued share capital of EMH. Cadence's overall unrealised
return on its investment in EMH is 208%.
Macarthur Minerals - Majority of Tenements in Pilbara Region
Granted Exploration Licences
Macarthur Minerals has announced that eleven out of its sixteen
Exploration Licences in the Pilbara, Western Australia, covering
circa 1,300 km2 have now been granted allowing full exploration
activities on those tenements for conglomerate gold, gold and
lithium. The remaining licences are expected to be granted
shortly.
Cadence has a 15.2% equity interest in Macarthur, which is an
Australian mining exploration company focused primarily on lithium,
iron ore and gold in the Pilbara region of Western Australia. It
also has a lithium project in Nevada, USA.
Yangibana Rare Earth Project - Update
Cadence announced on 22 November 2017 an updated Mineral
Resource Statement ("MRE") for the tenements 30%-owned by Cadence
on the Yangibana Rare Earth Project. This MRE represented 36% of
the total MRE over the Yangibana Rare Earth Project including areas
100% held by Hastings Technology Metals ("HAS").
Total Resource in Tenements 30% held by Cadence
--------------------------------------------------------------------------------------
Nd(2) O(3)
+Pr(6) Nd(2) Pr(6) Dy(2) Tb(4)
Category Tonnes O(11) TREO O(3) O(11) O(3) O(7)
----------- -------------------- ----------- ----- ------ ------- ------ ------
% % ppm ppm ppm ppm
----------- -------------------- ----------- ----- ------ ------- ------ ------
Measured 900,000 0.43 1.64 3,258 997 42.8 17.55
----------- -------------------- ----------- ----- ------ ------- ------ ------
Indicated 2,100,000 0.46 1.76 3,507 1,061 45.1 17.39
----------- -------------------- ----------- ----- ------ ------- ------ ------
Meas +
Ind 2,900,000 0.45 1.72 3,433 1,042 44.4 17.44
----------- -------------------- ----------- ----- ------ ------- ------ ------
Inferred 2,700,000 0.37 1.42 2,806 860 39.6 14.17
----------- -------------------- ----------- ----- ------ ------- ------ ------
TOTAL 5,600,000 0.41 1.58 3,134 955 42.1 15.88
----------- -------------------- ----------- ----- ------ ------- ------ ------
Note: Rounding errors may
occur
---------------------------------------------- ----- ------ ------- ------ ------
The MRE on our partly owned tenements has similar grades to
those reported in the total MRE.
Subsequently HAS announced its definitive feasibility study
("DFS"), which was based on mining ore reserves of 5.15 million
tonnes for 6 years followed by a further 2 years of mining mineral
resources. The DFS contemplates mining in areas wholly owned by
HAS.
Given the summary economic information on capital and operating
costs, the 5.6 million tonnes of total resource contained with the
jointly owned areas, we believe still represents significant value
to Cadence. We have engaged with HAS to determine how this can be
achieved.
Details of Ownership of Yangibana Rare Earth Deposit
On 1 December 2011, Cadence announced that it had acquired a 30%
free carried interest to Bankable Feasibility Study of the
Yangibana North Rare Earth Deposit. The exploration costs until the
commencement of the BFS are therefore borne solely by Hastings (70%
owners and operator). The same terms agreed and announced on 1
December 2012 also apply to Gossan, Hook, Kanes Gossan, Lions Ear
and Bald Hill North.
Since the acquisition of this asset Cadence has not been
required to invest any further capital in the development of the
jointly owned tenements.
- Ends -
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 Sinclair-Ford
Hannam & Partners LLP (Joint
Broker) +44 (0) 207 907 8500
Neil Passmore
Giles Fitzpatrick
Square1 Consulting +44 (0) 207 929 5599
David Bick
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 GBP25 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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