REG - Cadence Minerals PLC - Corporate Update

Cadence MineralsAnnouncement

29/01/2024 10:15

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RNS Number : 2220B  Cadence Minerals PLC  29 January 2024

Cadence Minerals Plc

 

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

 

Corporate Update - Hastings Technology Metals & Estonian Government to
Jointly Evaluate Downstream Processing Opportunities

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the
announcement by Hastings Technology Metals (ASX: HAS) ("Hastings") that it has
signed a non-binding Memorandum of Understanding ("MoU") with the Estonian
Government's investment agency, Ettevotluse ja Innovatsiooni Sihtasutus
("EIS") to collaborate on a joint scoping study into the potential development
of downstream rare earth processing capabilities in Estonia.

 

Following the release of the Staged Development Feasibility Study in May 2023,
Hastings' primary focus is the construction of the Yangibana Rare Earths
Project's ("Yangibana Project") mine and beneficiation plant to produce a rare
earth mineral concentrate for export to its offtake partners and enable a
quicker pathway to early project cashflows.

 

In parallel, Hastings continues to assess the potential to capture more of the
rare earth value chain through downstream processing of its concentrate to
produce a mixed rare earth carbonate.

 

Highlights:

 

·      Hastings and the Estonian Government - a European Union ("EU")
member country - will commence a joint study on a hydrometallurgical plant for
downstream processing of rare earth concentrate as part of Stage 2 of the
Yangibana Rare Earths Project

·      Joint study builds on Hastings' 21.15% investment in TSX-listed
Neo Performance Materials Inc. which has an operating rare earth separation
facility and a rare earth permanent magnet manufacturing plant under
construction in Estonia

·      Strategic alignment with the vision of Hastings, the Estonian
Government and the EU to establish an integrated mine-to-magnet European
supply chain, developing capabilities to provide strategic materials to
European original equipment manufacturers for electric vehicle traction motors
and renewable energy technologies

·      Memorandum of Understanding with the Estonian Government's
investment agency Ettevotluse ja Innovatsiooni Sihtasutus outlines objectives
including potential grants, funding, fiscal and tax incentives.

 

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/d2e988e6-b36.pdf?utm_source=Hastings+Tech+Metals+Email+List&utm_campaign=c193dbeb6b-EMAIL_CAMPAIGN_2024_01_28_10_26&utm_medium=email&utm_term=0_8af61533ee-c193dbeb6b-%5BLIST_EMAIL_ID%5D)
to view the full Hastings announcement

 

Hastings Executive Chairman Charles Lew commented: "Hastings is delighted to
establish this partnership with the Estonian Government to evaluate downstream
processing opportunities, as a natural extension of our ongoing work to
maximise value from the Yangibana Rare Earths Project. This is also builds on
our strategic investment into Neo Performance Materials to advance our vision
of building a rare earth magnet supply chain for the European market, in line
with the ongoing focus from European Union member states such as Germany to
secure alternative sources for critical raw materials."

 

EIS's Head of Foreign Investment Department, Joonas Vanto, said: "We are
pleased to welcome Hastings to conduct a feasibility study for the
establishment of a hydrometallurgical plant in Estonia. The establishment of
such a plant would help to further develop the value chain of permanent
magnets and electrification that is already operating here and would support
Estonia's and the European Union's ambition to achieve climate neutrality."

 

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% 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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