Cadence Minerals PLC Update - Bacanora Lithium (9757D)
July 01 2019 - 2:00AM
UK Regulatory
TIDMKDNC
RNS Number : 9757D
Cadence Minerals PLC
01 July 2019
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Bacanora Lithium (BCN) Signing of Investment and Offtake
Agreement with Ganfeng Lithium.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note
the announcement made on Friday 28(th) June by Bacanora Lithium
(AIM:BCN) ("Bacanora") that it has signed its Investment Agreement
and Offtake Agreement ('the Strategic Investment') with Ganfeng
Lithium Co., Ltd. ("Ganfeng" or "GFL"), the world's largest lithium
metals producer in terms of production capacity and the world's
third largest lithium compounds producer. Both agreements, which
are on substantially the same terms as outlined in the Company's
announcement on 20 May 2019, have now been submitted to the
relevant authorities in China for approval and completion.
Completion of the Strategic Investment is anticipated by the end of
July 2019 and would form a major part of the Company's finance
package for an initial 17,500 tonnes per annum lithium carbonate
operation at the large scale, high grade Sonora Project in
Mexico.
Bacanora is a lithium exploration and development company.
Cadence holds approximately 1.5% 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.
Announcement Highlights:
-- Cornerstone strategic investment of 29.99% in Bacanora for GBP14,400,091
o GFL has been granted pre-emption rights proportionate to its
shareholding in Bacanora.
o GFL shall appoint one Director to the Board of Bacanora.
-- Project level investment of 22.5% in Sonora Lithium Ltd
("SLL"), the holding company for the Sonora Lithium Project, for
GBP7,563,649.
o GFL has an option to increase its interest in SLL to up to 50%
within 24 months at a valuation based on the share price of
Bacanora at the time of subsequent investment.
o GFL shall appoint one Director to the Board of SLL.
-- Additional long-term offtake at a market-based price per tonne.
o 50% of Stage 1 lithium production.
o Up to 75% of Stage 2 lithium production.
-- GFL will complete a review within six months of the EPC
engineering design and capital costs of Sonora Lithium Project with
a view to reducing costs and accelerating the timetable.
The full release can be found at:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/14129811.html
Cadence Minerals CEO Kiran Morzaria commented: "On behalf of
Cadence Minerals, we are delighted to see Bacanora sign this
milestone agreement with Ganfeng to develop the Sonora Lithium
project. As Bacanora CEO Peter Secker says, Ganfeng's operational
expertise and industrial credibility is a strong endorsement of the
Sonora Project's potential."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
- Ends -
For further information: 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
Novum Securities Limited
(Joint Broker) +44 (0) 207 399 9400
Jon Belliss
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.
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
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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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