REG - Cadence Minerals PLC - Sonora Lithium Investment Update

Cadence MineralsAnnouncement

16/11/2023 07:00

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RNS Number : 4228T  Cadence Minerals PLC  16 November 2023

Cadence Minerals Plc

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

 

Sonora Lithium Investment Update

Request for treaty negotiations with Mexico

 

Cadence Minerals (AIM/Aquis: KDNC) advises that the Company and its subsidiary
REM Mexico Limited ("REMML") have issued a Request for Consultations and
Negotiations ("Request") to the Government of Mexico under the United
Kingdom-Mexico Bilateral Investment Treaty ("BIT").

The Request concerns the purported revocation of the mining concessions for
the Sonora Lithium Project (the "Project") by the Mexican General Directorate
of Mines as announced by Cadence on 31 August 2023, and related acts and
omissions by Mexico. The affected concessions include those granted to Mexilit
S.A. de CV ("Mexilit") and Minera Megalit S.A. de CV ("Megalit"), these being
joint venture companies in which Cadence holds a 30% stake through REMML.

In their Request, Cadence and REMML have identified various BIT obligations
that have been breached by Mexico, including Mexico's obligation not to
unlawfully expropriate the investments of UK investors such as Cadence and
REMML and its obligation to treat such investments fairly and equitably.

In accordance with Article 10 of the BIT, Cadence and REMML have requested
consultations and negotiations with Mexico with a view to resolving the
dispute amicably. The BIT provides for disputes to be resolved by
international arbitration if they cannot be resolved by consultation and
negotiation.

Cadence and REMML have engaged leading international law firm Clifford Chance
as counsel for the BIT process. The Clifford Chance team representing Cadence
and REMML specialise in mining-related investment treaty arbitration cases.

Cadence CEO Kiran Morzaria commented: "The team at Clifford Chance have many
years of experience in mining-related investment treaty arbitration, and have
successfully resolved similar cases in the past. With their guidance, we are
hopeful that a constructive solution can be reached through consultations and
negotiations with Mexico under the BIT. "

Background to Cadence Sonora Investments

Cadence holds an interest in the Sonora Lithium Project ("Project") via its
30% stake in each of  Mexilit  and Megalit.

Mexilit and Megalit form part of the Project. The Project consists of nine
granted concessions. Two of the concessions (La Ventana and La Ventana 1)
are owned 100% by subsidiaries of Ganfeng Lithium Group Co., Ltd
("Ganfeng"). El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions
are owned by Mexilit, which is owned 70% by Ganfeng and 30% by Cadence. The
Buenavista and San Gabriel concessions are owned by Megalit, which is owned
70% by Ganfeng and 30% by Cadence.

For further background to Cadence's investments in the Sonora Lithium Project,
see the Company's RNS of 31 August 2023 ("Sonora Lithium Investment Update")
here
(http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=311428233794045267)
.

 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

 

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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