Cadence Minerals PLC Update - Macarthur Minerals (6843E)
July 05 2019 - 9:29AM
UK Regulatory
TIDMKDNC
RNS Number : 6843E
Cadence Minerals PLC
05 July 2019
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Macarthur Minerals (TSX-V: MMS) Seeks TSX-V Approval to Close
Financing on the Lake Giles Iron Ore Project
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note
the announcement today from Macarthur Minerals (TSX-V: MMS)
("Macarthur") that final approval is being sought from the TSX-V to
close the private placement offering (the "Offering") of US$6
million of secured Convertible Note ("Note") as previously
announced on March 19, 2019.
Cadence holds approximately 9.8% of the issued equity interest
in Macarthur, which is an Australian mining exploration company
focused primarily on iron ore, nickel, lithium and gold in Western
Australia. It also has a lithium project in Nevada, USA.
The proceeds of the Offering will be used to complete a Bankable
Feasibility Study ("BFS") on Macarthur's Lake Giles Iron Ore
Project ("Project") in Western Australia. The BFS will include a
54-hole infill drill program to obtain metallurgical samples and
convert Inferred and Indicated mineral resources to a Measured
category.
Macarthur owns 100% of the Lake Giles Iron Ore Project. The
Project incorporates the Mineral Resources of the Moonshine
Magnetite Project and the Ularring Hematite Project. The Moonshine
Magnetite resource contains Inferred Mineral Resources of
approximately 710 mt at 30.2% Fe. The Ularring Hematite resource
includes Indicated Mineral Resources of approximately 54.46 Mt at
47.2% Fe and Inferred Mineral Resources of approximately 25.99 Mt
at 45.4% Fe. The mineral resource estimates were detailed as
previously announced on June 17, 2019 filed under the Preliminary
Economic Assessment ("PEA") undertaken by independent consultants
Engenium Pty Ltd ("Engenium") for a 2.5 to 3.4 Mtpa operation
incorporating the Moonshine Magnetite and Ularring Hematite Mineral
Resources to produce a high-grade blended concentrate in excess of
65% Fe. The technical and financial evaluation in the PEA indicates
the Project is potentially economically viable and further project
development is justified.
The Note is structured around these key terms:
-- The Note has a face value of US$10,000 following adoption of a loan note instrument.
-- The Note can be converted at any time into common shares of
Macarthur at Noteholder's option at a conversion price that
reflects 80% of the average VWAP over 5 trading days immediately
preceding a notice of conversion or at the greater of C$0.10 with
attaching warrant offered for one fourth of the Commitment amount
exercisable at the greater of C$0.10 or the average VWAP over 5
trading days immediately preceding the date of the Advance
date.
-- The Note will have a term to maturity of 3 years and bear
interest at a rate of 12.5% per annum.
-- The Note includes a mandatory conversion clause that such
conversion may not have the effect of causing a Noteholder to own
20% or more of the common shares of Macarthur or becoming a control
person.
-- The Mining Leases of the Project held by Macarthur act as security for the Note.
-- Any shares issued upon conversion of the principal amount of
the Note and any accrued interest will be subject to certain resale
restrictions, including a restricted (or "hold") period of four
months and one day following the distribution date, under
applicable Canadian securities legislation
The full release can be found at:
https://web.tmxmoney.com/article.php?newsid=8427543441209924&qm_symbol=MMS
This news release is not for distribution to United States
Services or for Dissemination in the United States.
- 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
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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