REG - Cadence Minerals PLC - Corporate Update - Hastings Technology Metals

Cadence MineralsAnnouncement

22/11/2023 11:45

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RNS Number : 3492U  Cadence Minerals PLC  22 November 2023

Cadence Minerals Plc

 

("Cadence Minerals", "Cadence", or "the Company")

 

Corporate Update - Hastings Technology Metals

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the
announcement by Hastings Technology Metals (ASX: HAS) ("Hastings") regarding
the project financing process for the Yangibana Rare Earths Project
("Yangibana Project"). Hastings has agreed an at-the-market equity financing
facility for up to $50 million with Alpha Investment Partners ("AIP").

 

Highlights:

 

·      At-the-Market equity financing facility for up to $50 million
established with AIP to provide working capital funding flexibility as project
financing process is advanced

·      Project financing process for Yangibana Project advancing through
first stage financiers' investment and credit committee approvals

·      Multiple non-binding financing proposals received from global
mining funds and debt capital market investors to fund the Yangibana Project
debt size in the order of the target gearing ratio of 60%

·      Discussions ongoing with Federal Government, following recent
announcement of $2 billion expansion in critical minerals financing

·      Strategic partner and joint venture indicative proposals received
from global mining funds

·      Certification of Green Financing Framework to enable issue of
green finance instruments, accredited

by Second Party Opinion ("SPO") provider, Det Norske Veritas ("DNV") Business
Assurance Australia

·      Next steps include shortlisting preferred financier(s)/syndicated
lender group to conduct final due diligence, long form term sheet,
intercreditor terms (if required) and site visits.

 

During the September quarter, Hastings completed early infrastructure works at
the Yangibana Project, including the Kurrbili Accommodation Village, Yangibana
Airstrip, access roads, production borefields, water pipelines and clearing
and grubbing of the entire plant site.

 

Link here (https://investi.com.au/api/announcements/has/4c45ea3d-1a4.pdf) to
view the full Hastings announcement

 

Hastings Executive Chairman Charles Lew commented: "Securing multiple
indicative funding proposals is a significant milestone. We are pleased by the
strong response we have received from various potential financiers validating
the economic and technical viability of the Yangibana Project."

 

"As we evaluate each option, we are focused on choosing the path that best
aligns with our strategic objectives and drives the best economics for the
business. As we work towards finalising the funding stack, we will continue to
look at opportunities to optimise our working capital and operating
efficiencies to deliver value for our shareholders."

 

Cadence shareholding in Hastings

 

On 25 January 2023, Cadence completed the sale of its 30% stake in several
mineral concessions forming part of the Yangibana Rare Earths project for a
consideration of 2.45 million Hastings shares. This consideration was a
premium over the Net Present Value ("NPV") of the Cadence portion of the
mineable material, based on the definitive feasibility ("DFS") updated by
Hastings on 21 February 2022. Currently Cadence holds approximately 1.4% of
Hastings issued share capital.

 

The full announcement concerning the Yangibana sale is available here
(http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=311428231137425921)
.

 

 For further information contact:

 Cadence Minerals plc                                         +44 (0) 20 3582 6636
 Andrew Suckling
 Kiran Morzaria

 WH Ireland Limited (NOMAD & Broker)                          +44 (0) 20 7220 1666
 James Joyce
 Darshan Patel

 Fortified Securities - Joint Broker                          +44 (0) 20 3411 7773
 Guy Wheatley

 Brand Communications                                         +44 (0) 7976 431608
 Public & Investor Relations
 Alan Green

 

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.

 

Cautionary and Forward-Looking Statements

Certain statements in this announcement are or may be deemed to be
forward-looking statements. Forward-looking statements are identified 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 reflect 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.

 

The information contained within this announcement is deemed by the company to
constitute Inside Information as stipulated under the Market Abuse Regulation
(E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European
Union (Withdrawal) Act 2018, as amended. Upon the publication of this
announcement via a regulatory information service, this information is
considered to be in the public domain.

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