REG - Cadence Minerals PLC - Castillo Copper Picasso Lithium Project Update

Cadence MineralsAnnouncement

22/11/2021 09:00

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RNS Number : 1070T  Cadence Minerals PLC  22 November 2021

Cadence Minerals Plc
 
("Cadence Minerals", "Cadence")

 

Castillo Copper (ASX/LON: CCZ) field trip to the Picasso Lithium Project identifies circa 10km zone of pegmatites.

 

Further to the announcement of 27 October 2021,
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that
Castillo Copper (ASX/LON: CCZ) ("Castillo") has provided an update on the
Picasso Lithium Project following the visit of its geology team who mapped and
collected samples from the high-density corridor.

 

For the full Castillo announcement, please click link here
(https://www.londonstockexchange.com/news-article/CCZ/picasso-field-trip-findings/15219899)
.

 

Highlights

·      A circa 10km zone of pegmatite occurrences was confirmed in the
north-eastern part of the tenure, which significantly exceeds government
mapping; and

·      The observed pegmatites are potentially related to lithium
mineralisation which enhances prospectivity of the tenure's north-eastern
quadrant

·      Due diligence for the Litchfield Lithium Project is progressing
with the laboratory expected to return assays within 2-3 weeks

 

Field Trip Findings:

Castillo's geology team undertook considerable mapping across the Picasso
Lithium Project, though much of the time was focused on the tenure's
north-east quadrant where the high-density pegmatite corridor is located.
Encouragingly, a circa 10km zone of pegmatite occurrences was confirmed in the
tenure's north-east quadrant which is the best exposed part of the Picasso
Lithium Project. Notably, the pegmatites potentially host lithium
mineralisation though this is subject to further investigation.  There are
several areas of outcropping basement where granite is the dominant rock type.
Interestingly, there is potential to discover further pegmatites across the
tenure as there is significant shallow sand cover.

 

Simon Paull, Managing Director of Castillo Copper, commented: "The geology
team's visit to the Picasso Lithium Project delivered encouraging news,
confirming that a 10km zone of pegmatites is apparent in the tenure's
north-east quadrant. The Board's preliminary conclusion, based on due
diligence undertaken to date, is the Picasso Lithium Project is prospective
for lithium mineralisation and delivers significant incremental exploration
potential."

 

Cadence CEO, Kiran Morzaria, added: "We are pleased to note the progress and
initial conclusions announced today by Castillo following the field trip work
undertaken at the Picasso Project. We look forward to further progress."

 

Overview

Lithium Technologies Pty Ltd ("LT") and Lithium Supplies Pty Ltd ("LS"), in
which Cadence owns a 29% 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 group is embarking on a strategic
transformation to morph into a mid-tier copper group underpinned by its core
projects:

 

·      A large footprint in the in the Mt Isa copper-belt district,
north-west Queensland, which delivers significant exploration upside through
having several high-grade targets and a sizeable untested anomaly within its
boundaries in a copper-rich region.

·      Four high-quality prospective assets across Zambia's copper-belt
which is the second largest copper producer in Africa.

·      A large tenure footprint proximal to Broken Hill's world-class
deposit that is prospective for zinc-silver-lead-copper-gold.

·      Cangai Copper Mine in northern New South Wales, which is one of
Australia's highest grading historic copper mines.

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
(https://www.cadenceminerals.com/projects/lt-ls/)

 

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.

 

- Ends -

 

 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
 Novum Securities Limited (Joint Broker)        +44 (0) 207 399 9400

 Jon Belliss

 
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 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 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 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 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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