TIDMKDNC
RNS Number : 6198T
Cadence Minerals PLC
25 November 2021
Cadence Minerals Plc
("Cadence Minerals", "Cadence")
Castillo Copper (ASX/LON: CCZ) - Option extension to acquire
Litchfield and Picasso Lithium Projects .
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to
announce that it has been advised by Castillo Copper (ASX/LON: CCZ)
("Castillo") that it will be extending the 90-day option to acquire
the Picasso and Litchfield Lithium Projects in prime regions in
Western Australia (WA) and the Northern Territory (NT)
respectively. This is primarily due to processing delays at the
laboratories, due to the huge demand to process samples, which is
extending timelines significantly.
For the full Castillo announcement, please click link here
Highlights
-- CCZ is extending the 90-day option period to acquire the
Litchfield and Picasso Lithium Projects(1) :
o More than 650 surface assays for the Litchfield Lithium
Project(1) , which is contiguous to Core Lithium's (ASX: CXO)
strategic Finniss Lithium Project (JORC compliant ore reserves:
7.4Mt @ 1.3% Li2O)(2) , remain in process queues at the
laboratory
o Analysing and interpreting these assay results should
potentially enable CCZ's geology team to determine if lithium
mineralisation is contiguous between the Lichfield and Finniss
Lithium Projects(1)
-- Under the terms of the option agreement, the extension
remains effective until 30 days after the receipt of the full suite
of assay results.
Option Extended:
Whilst reviewing available information for both projects has
been positive, enhancing their potential to host lithium
mineralisation, the assays are critical to enable due diligence to
be finalised. This is especially the case for the Litchfield
Lithium Project as it is contiguous to CXO's Finniss Lithium
Project which has JORC compliant ore reserves of 7.4Mt @ 1.3% Li(2)
O(2) .
There are over 650 surface samples from four zones on the
boundary with the Finniss Lithium Project. Analysing and
interpreting these assay results should enable CCZ's geology team
to potentially determine if there is contiguous lithium
mineralisation apparent and finalise due diligence.
Due to unprecedented demand, the timelines to process samples at
laboratories have been extended significantly. Synergy's geology
team are in regular contact with the laboratories and hope to have
clarity on when the assays will be received shortly.
Overview
Lithium Technologies Pty Ltd ("LT") and Lithium Supplies Pty Ltd
("LS"), in which Cadence owns a 31.5% shareholding, each own 50% of
Synergy Prospecting Pty Ltd ("Synergy") and have granted , as
announced on 29 September 2021, Castillo a 90-day option to acquire
100% of the outstanding shares of LT and LS and by implication 100%
of Synergy.
During this 90-day period, Castillo will be conducting due
diligence on all three entities to ensure the underlying assets are
in good standing and there are no material adverse issues. Under
the terms of the option agreement, Castillo can exercise its right
to acquire LT, LS and Synergy at any time during the 90-day
period.
Castillo Copper Limited is an Australian-based explorer
primarily focused on copper across Australia and Zambia.
The primary assets of Synergy, which are wholly-owned, comprise
the Litchfield Lithium Project (EL31774) in NT and Picasso Lithium
Project (E63/1888) in WA. In addition, Synergy has an application
in NT - EL31828 - known as the Alcoota Lithium Project, which
comprises ground proximal to Alice Springs. Castillo will need to
undertake further geological due diligence on this application.
LT and LS also hold applications for six lithium properties in
San Luis Province, Central Argentina. Again, Castillo will need to
undertake further geological due diligence on these
applications.
Further details on these assets and all the applications and
permits are contained on our website here
Option terms & consideration
The terms of the 90-day option are as follows:
-- A$50,000 non-refundable deposit in cash on formally granting
the option that will go directly to Synergy for working capital
purposes.
Upon exercising the option within the 90-day period, the binding
consideration terms are as follows:
-- A$1m script payment in CCZ shares will become payable to the
Vendor Group based on the 14-day WVAP calculated from the date of
which the option agreement is announced to the ASX. Note, the
Vendor Group will be subject to a 6-month voluntary escrow period
for 50% of the shares and 12-months for the 50% balance from the
date of settlement. In addition, both parties agree to sign off on
a binding term sheet.
Incremental consideration terms are applicable if the following
milestones are achieved:
-- A$1m script payment in CCZ's shares to the Vendor Group based
on the 14-day WVAP if two drill-holes produce assayed intercepts
greater or equal to a true width of at least 10m @ 1.3% Li2O.Note,
the two holes will be at least 100m apart, but not greater than
200m.
-- A$1m script payment in CCZ's shares to the Vendor Group based
on the 14-day WVAP if a JORC compliant total inferred resource of
at least 7Mt @ 1.3% Li2O is modelled by SRK Consulting.
-- In the event of commercial mining operations commencing a 2%
NSR will be payable to the nominees of the facilitator.
References
1) CCZ ASX Release - 29 September & 20 October 2021
2) CXO ASX Release - 21 September 2021 (Annual Report)
- Ends -
For further information: Cadence
Minerals plc +44 (0) 7879 584153
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)
James Joyce +44 (0) 207 220 1666
Darshan Patel
Novum Securities Limited (Joint Broker)
Jon Belliss +44 (0) 207 399 9400
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 Cadence
Minerals Plc'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 Cadence
Minerals Plc. Although any forward-looking statements contained in
this announcement are based upon what the Directors believe to be
reasonable assumptions. Cadence Minerals Plc cannot assure
investors that actual results will be consistent with such
forward-looking statements.
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END
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