TIDMKDNC
RNS Number : 7147E
Cadence Minerals PLC
31 October 2022
Cadence Minerals Plc
("Cadence Minerals", "Cadence", or "the Company")
Investment Update
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
update shareholders on the progress of its principal
investments.
Highlights:
-- Completion of Amapa Ore Reserve Estimate supports planned 15-year mine life
-- Cadence increases Amapa stake to 30% through conversion of
loans, capitalisation of management, consultancy, admin and cash
investment. No additional capital raising required.
-- European Metals Holdings ("EMH") reports significant
developments with the Cinovec Lithium Chemical Plant ("LCP")
extraction process, which is expected to is expected to reduce both
Capex and Opex in the LCP by 10-20%.
-- Following the sale of stakes in Lithium Technologies and
Lithium Supplies ("LT & LS"), Evergreen Lithium Pty Ltd is
progressing with its listing on the Australian Stock Exchange.
-- Following the sale in working interests in the Yangibana Rare
Earths project ("Yangibana") tenements to Hastings Technology
Metals (ASX: HAS), we expect various regulatory approvals to be
completed by the end of the year.
Cadence CEO, Kiran Morzaria, commented : "I am delighted to
report that we have taken several significant steps forward with
our flagship Amapa project. The decision to convert loans and other
costs into an increased stake in Amapa was almost a formality
following successful completion of the ORE and the consequential
progress with the PFS. With the steady increase in project value,
your board are genuinely excited at the development prospects of
Amapa."
I look forward to reporting further progress across all our
projects in the coming months."
Amapa Iron Ore Project ("Amapa" or the "Project")
Cadence announced in early October the completion of an upgraded
and increased Mineral Resource Estimate ("MRE"). The Measured and
Indicated portion of this MRE has been used to calculate the Ore
Reserve Estimate ("ORE"). The ORE represents the economically
mineable part of a Measured and Indicated Mineral Resource. It
includes diluting materials and allowances for losses, which may
occur when the material is mined or extracted and is defined by our
Pre-Feasibility Study ("PFS").
We are happy to report that the ORE has been completed, and the
results support the planned 15-year mine life. The JORC 2012
compliant statement and supporting disclosures will form part of
the PFS publication, which is still scheduled for publication this
quarter.
Given the excellent progress at Amapa and the economics of the
asset, Cadence intends to increase its stake from 27% to 30% while
still retaining its previously announced first right of refusal to
acquire 49% of the asset.
Cadence will earn this additional three per cent via the
conversion of loans that the Company has made to the Project, the
capitalisation of management, consultancy and other admin cost and
further cash investment in the Project. The total value of these
three items is approximately US$3.3 million. Cadence requires no
additional capital raising to increase its stake
Once complete, Cadence will have acquired 30% of Amapa for
approximately US$9.3 million. Anglo-American valued its 70% stake
in Amapa at US$ 462 million (100% US$ 660 million).
European Metals Holdings ("EMH")
EMH has announced significant developments in the processing
flowsheet for the Cinovec vertically integrated battery metals
project ("Cinovec") in the Czech Republic.
Highlights
-- The simplified Lithium Chemical Plant ("LCP") extraction
process has delivered exceptionally clean battery-grade lithium
carbonate
-- LCP has the capability to deliver very high-purity lithium
hydroxide, lithium carbonate, lithium sulphate or lithium
phosphate
-- The simplified process is expected to reduce both Capex and Opex in the LCP by 10-20%.
-- LCP recoveries of 88-93% lithium proven in locked-cycle
testwork, an outright recovery improvement of 3-6% over
locked-cycle testwork for earlier, more complex flowsheet
-- LCP pilot programme to commence in 4Q CY22 with marketing
samples available to offtake partners in 1Q CY23; pregnant leach
solution containing 48kg of lithium carbonate equivalent is ready
to be processed
Link here for the full EMH announcement:
https://www.investi.com.au/api/announcements/emh/a4072882-271.pdf
Other Investments
In July 2022, Cadence sold its 31.5% stake in Lithium
Technologies and Lithium Supplies ("LT & LS") to Evergreen
Lithium Pty Ltd ("Evergreen"). This was for an initial
consideration of AS$3.16 million (GBP1.81 million)in Evergreen
shares, with a further AS$6.63 million (GBP3.80 million) due in
Evergreen equity on the achievement of certain performance
milestones Evergreen is progressing with its listing on the
Australian Stock Exchange. We anticipate that this will be
completed by the end of this year.
The full announcement concerning the LT & LS sale is
available here .
In June 2022, Cadence entered into a binding agreement to sell
its working interests in the Yangibana Rare Earths project
("Yangibana") tenements to Hastings Technology Metals (ASX: HAS)
("Hastings") for A$9 million (GBP5.1 million) to be satisfied by
the issue of fully paid ordinary Hastings shares. Cadence's 30%
interest in tenements covers a small portion of Yangibana and
potentially represents one year of the 16-year mine life. Cadence
and Hastings are awaiting various regulatory approvals, and we
anticipate that this will be completed by the end of the year.
The full announcement concerning the Yangibana sale is available
here
For further information:
Cadence Minerals plc +44 (0) 7879 584153
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD
& Broker) +44 (0) 207 220 1666
James Joyce
Darshan Patel
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.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
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.
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