Cadence Minerals PLC Update - Bacanora Minerals (7169T)
July 05 2018 - 4:32AM
UK Regulatory
TIDMKDNC
RNS Number : 7169T
Cadence Minerals PLC
05 July 2018
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Bacanora Lithium announces a US$150m Debt Funding
Secured as Part of Sonora Lithium Project Funding
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note
that Bacanora Lithium plc (AIM: BCN), the London-listed lithium
company, has today announced a S$150 million senior debt facility
with RK Mine Finance ("RK"), a leading specialist in the provision
of senior debt capital to mining companies, for the development of
Stage 1 of the Sonora Lithium Project in Mexico, an initial
17,500tpa lithium carbonate ("Li2CO3") operation.
Furthermore, the Cadence team note the Bacanora's comments that
the competitive terms of the RK Facility provide further validation
of the quality of Sonora's battery grade (+99.5%) Li2CO3 product
and its potential to become a leading supplier of high-value
lithium products to fast-growing industries such as electric
vehicles and energy storage.
Highlights
-- US$150 million senior debt facility secured with leading
specialist finance provider at competitive rates
-- Follows favourable Feasibility Study which assigned a pre-tax
US$1.253 billion NPV8 to the Sonora Lithium Project
-- Advanced discussions with off-take partner and other
strategic investors to complete the proposed Stage 1 development
funding package
Bacanora is a lithium exploration and development company.
Cadence has an approximately 8% of Bacanora's equity and 30% of
Mexalit and Megalit joint venture companies. Mexalit is the owner
of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral
concessions, which forms part of the 20-year mine plan of the
Sonora Lithium Project in Northern Mexico and the
Link to the full Bacanora announcement here:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13706249.html
Cadence Minerals CEO Kiran Morzaria commented:
"On behalf of myself and the Cadence team, we are genuinely
excited that Bacanora has secured a senior debt funding package of
this size."
"Bacanora's CEO Peter Secker rightly points out the relative
dearth of debt facilities across the junior resource space in
recent years, and the fact that the facilities have been secured
provides absolute validation of the quality and longevity of the
Sonora Lithium project."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
or 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 +44 (0) 207 907 8500
(Financial Advisors & Joint Broker)
Neil Passmore
Ingo Hofmaier
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 GBP30 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.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to
be forward-looking statements. Forward-looking statements are
identi ed by their use of terms and phrases such as "believe"
"could" "should" "envisage" "estimate" "intend" "may" "plan" "will"
or the negative of those variations or comparable expressions
including references to assumptions. These forward-looking
statements are not based on historical facts but rather on the
Directors' current expectations and assumptions regarding the
Company's future growth results of operations performance future
capital and other expenditures (including the amount. nature and
sources of funding thereof) competitive advantages business
prospects and opportunities. Such forward-looking statements re ect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors. Many factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business
conditions competition environmental and other regulatory changes
actions by governmental authorities the availability of capital
markets reliance on key personnel uninsured and underinsured losses
and other factors many of which are beyond the control of the
Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be
reasonable assumptions. The Company cannot assure investors that
actual results will be consistent with such forward-looking
statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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