Cadence Minerals PLC Contract Awarded for Yangibana Processing Plant (5567Q)
October 21 2019 - 6:04AM
UK Regulatory
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RNS Number : 5567Q
Cadence Minerals PLC
21 October 2019
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Hastings Technology Metals (ASX:HAS) - DRA Pacific Awarded EPCM
Contract Yangibana Processing Plant.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
announce Hastings Technology Metals (ASX:HAS) ("Hastings"),
Cadence's joint venture partner at the Yangibana Rare Earth Project
in the Gascoyne region of Western Australia ("Yangibana Project"),
has announced that it has awarded the Engineering, Procurement,
Construction and Management (EPCM) contract for its rare earths
processing plant and the associated infrastructure for the
Yangibana process plant in the Gascoyne Region of Western Australia
to DRA Pacific Pty Ltd ("DRA Pacific"), a diversified global
engineering, project delivery and operations management. The
appointment of DRA Pacific as the EPCM contractor for the Yangibana
Project was preceded by a series of value engineering studies and
the Front-End-Engineering-Design ("FEED") completed by DRA Pacific
during 2018 and 2019. DRA Pacific's EPCM contract will cover all
aspects of the design and construction of the processing facility
and associated non-process infrastructure capable of producing
15,000 tonnes of Mixed Rare Earths Carbonate (MREC) per year.
Cadence Minerals Yangibana Holding:
Cadence owns 30% of the Yangibana North, Gossan, Hook, Kanes
Gossan, Lions Ear and Bald Hill North Rare Earth Deposit, which
form part of the Yangibana Rare Earth Deposit. Probable Ore
Reserves of some 2.1 million tonnes at 1.66% total rare earth
elements are contained within 30% owned joint venture tenements.
Further details of these reserves and pre-feasibility study can be
found at:
http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2688632.
Highlights:
-- DRA Pacific Pty Ltd awarded the Engineering, Procurement and
Contract Management (EPCM) Contract for the Yangibana Rare Earths
Processing Plant.
-- The scope of works under the DRA Pacific Pty Ltd EPCM
agreement has an estimated capital value of circa A$350m.
-- DRA Pacific's parent DRA Global Ltd have extensive experience
in designing and building mineral processing facilities worldwide
and their personnel have previously delivered rare earth plants in
Western Australia.
-- The key component of the contract terms is the comprehensive
performance guarantee linked to ore throughput for the entire
process flow sheet.
The EPCM contract is the single largest dollar value contract
associated with the Yangibana Project. It is also a fundamental
requirement of Hastings' debt providers and hence is pivotal to the
project financing process. Works directed under the EPCM Contract
have an estimated value of approximately A$350M.
The key component of the contract terms is the comprehensive
performance guarantee linked to ore throughput for the entire
process flow sheet.
The appointment of DRA Pacific as the EPCM contractor for
Hastings represents another critical milestone for the Project,
reinforcing that Yangibana is execution ready.
Choosing DRA Pacific was the logical choice given the already
close working relationship built up over the last 15 months, and
the experience in rare earths processing plant design that DRA
Pacific bring to the table.
The full release can be found at:
https://www.asx.com.au/asxpdf/20191021/pdf/449nzf57qlq659.pdf
Hastings Executive Chairman Charles Lew said: "We are pleased to
have DRA involved in the construction of the Yangibana processing
plant. Their knowledge and experience in developing successful
minerals processing projects makes them the ideal candidate to
manage the construction of our project. The award of the EPCM
contract moves the Yangibana Rare Earths Project firmly into
development phase to commence project execution and progress to
production of our mixed rare earth carbonate by 2022."
Cadence CEO Kiran Morzaria commented: "The appointment of DRA
Pacific represents a key step for Yangibana. Not only is it key to
the project funding going forward, the EPCM contract terms include
a comprehensive performance guarantee linked to ore throughput.
Today's announcement provides further validation for our investment
strategy into the Yangibana joint venture with Hastings."
- 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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