REG - Cadence Minerals PLC - Castillo Extends Option Over Lithium Projects

Cadence MineralsAnnouncement

25/11/2021 11:50

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RNS Number : 6198T  Cadence Minerals PLC  25 November 2021

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

 

Castillo Copper (ASX/LON: CCZ) - Option extension to acquire Litchfield and Picasso Lithium Projects.

 

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that
it has been advised by Castillo Copper (ASX/LON: CCZ) ("Castillo") that it
will be extending the 90-day option to acquire the Picasso and Litchfield
Lithium Projects in prime regions in Western Australia (WA) and the Northern
Territory (NT) respectively. This is primarily due to processing delays at the
laboratories, due to the huge demand to process samples, which is extending
timelines significantly.

 

For the full Castillo announcement, please click link here
(https://www.londonstockexchange.com/news-article/CCZ/option-to-acquire-lithium-projects-extended/15225125)

 

Highlights

·      CCZ is extending the 90-day option period to acquire the
Litchfield and Picasso Lithium Projects(1):

o  More than 650 surface assays for the Litchfield Lithium Project(1), which
is contiguous to Core Lithium's (ASX: CXO) strategic Finniss Lithium Project
(JORC compliant ore reserves: 7.4Mt @ 1.3% Li2O)(2), remain in process queues
at the laboratory

o  Analysing and interpreting these assay results should potentially enable
CCZ's geology team to determine if lithium mineralisation is contiguous
between the Lichfield and Finniss Lithium Projects(1)

·      Under the terms of the option agreement, the extension remains
effective until 30 days after the receipt of the full suite of assay results.

 

Option Extended:

Whilst reviewing available information for both projects has been positive,
enhancing their potential to host lithium mineralisation, the assays are
critical to enable due diligence to be finalised. This is especially the case
for the Litchfield Lithium Project as it is contiguous to CXO's Finniss
Lithium Project which has JORC compliant ore reserves of 7.4Mt @ 1.3%
Li(2)O(2).

 

There are over 650 surface samples from four zones on the boundary with the
Finniss Lithium Project. Analysing and interpreting these assay results should
enable CCZ's geology team to potentially determine if there is contiguous
lithium mineralisation apparent and finalise due diligence.

 

Due to unprecedented demand, the timelines to process samples at laboratories
have been extended significantly. Synergy's geology team are in regular
contact with the laboratories and hope to have clarity on when the assays will
be received shortly.

 

Overview

Lithium Technologies Pty Ltd ("LT") and Lithium Supplies Pty Ltd ("LS"), in
which Cadence owns a 31.5% 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 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.

 

References

1)     CCZ ASX Release - 29 September & 20 October 2021

2)     CXO ASX Release - 21 September 2021 (Annual Report)

 

- 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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