REG - Cadence Minerals PLC - Corporate Update – European Metals Holdings

Cadence MineralsAnnouncement

21/07/2023 10:15

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RNS Number : 8144G  Cadence Minerals PLC  21 July 2023

Cadence Minerals Plc

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

 

Corporate Update - European Metals Holdings #EMH: EBRD Strategic Investment

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the
announcement by European Metals Holdings Limited (ASX & AIM: EMH, OTCQX:
EMHXY, ERPNF and EMHLF) that it has entered into a strategic investment
agreement with The European Bank for Reconstruction and Development ("EBRD")
under which EBRD has agreed to invest €6 million to support the Company's
development of the Cinovec Project in the Czech Republic.

 

As part of the due diligence process, EBRD engaged an independent,
international mining consultancy to undertake a technical review of the
Cinovec Project. EBRD also performed a review of the Cinovec Project in
respect to compliance with EBRD'sEnvironmental and Social Policy.

 

Highlights:

·     EBRD has agreed to invest €6 million to support the Company's
development of the Cinovec Project in the Czech Republic.

·     ERBD's investment and expertise will be beneficial to the Company
as the Cinovec Project moves through permitting, project financing, and
completing its Definitive Feasibility Study (DFS).

·     As part of its due diligence, EBRD engaged an independent,
international mining consultancy to conduct a technical review of the Cinovec
Project.

·     EBRD is an International Financial Institution owned by the
European Union, European Investment Bank and 71 countries, including the Czech
Republic.

·     The investment is to be implemented by way of a private placement
of 12,315,213 shares of the Company to be issued to EBRD at a price of
£0.423 per share. This equates to AUD 0.803 per share

 

European Metals Executive Chairman Keith Coughlan commented; "The Company
welcomes EBRD's strategic investment, which is a strong endorsement of the
Cinovec Project's value and its commitment to the highest environmental and
social standards.  The EBRD investment aims to fund the project's
predevelopment work and opens a pathway to potentially securing project
financing.  The successful completion of the technical due diligence process
is a testament to the quality of the Cinovec team, the work which has been
done to date and a strong vote of confidence in the project. The EBRD
investment is confirmation that the Cinovec Project is a vital part of
establishing a strong, sustainable European electric vehicle battery supply
chain to support Europe's accelerating transition to e-mobility."

 

Natalia Lacorzana, Head of Natural Resources at EBRD said: "We are pleased to
support the Cinovec project, the first lithium project financed by the Bank,
on its path to become a responsibly mined source of battery grade lithium for
Europe.  EBRD is committed to supporting the global transition to a green
economy, the move towards wider adoption of electric vehicles, in particular,
via providing necessary funding and know-how to junior miners of critical
and/or strategic raw materials.

 

Link here
(https://www.londonstockexchange.com/news-article/EMH/ebrd-strategic-investment-in-emh/16050817)
to view the full EMH announcement

 

Cinovec Lithium/Tin Project

 

Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech
State over the Cinovec Lithium/Tin Project. Geomet has been granted a
preliminary mining permit by the Ministry of Environment and the Ministry of
Industry. The company is owned 49% by EMH and 51% by CEZ a.s. through its
wholly owned subsidiary, SDAS. Cinovec hosts a globally significant hard rock
lithium deposit with a total Measured Mineral Resource of 53.3Mt at 0.48% Li2O
and 0.08% Sn, Indicated Mineral Resource of 360.2Mt at 0.44% Li2O and 0.05% Sn
and an Inferred Mineral Resource of 294.7Mt at 0.39% Li2O and 0.05% Sn
containing a combined 7.39 million tonnes Lithium Carbonate Equivalent and
335.1kt of tin.

 

Cadence Minerals holds approximately 6.5% percent of the equity in European
Metals Holdings.

 

 For further information contact:

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

 WH Ireland Limited (NOMAD & Broker)                            +44 (0) 207 220 1666
 James Joyce
 Darshan Patel

 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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