REG - Cadence Minerals PLC - Corporate Update - Hastings Technology Metals

Cadence MineralsAnnouncement

03/05/2023 17:30

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RNS Number : 3287Y  Cadence Minerals PLC  03 May 2023

Cadence Minerals Plc

 

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

 

Corporate Update - Hastings Technology Metals

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the
announcement by Hastings Technology Metals (ASX: HAS) ("Hastings") in regard
to further progress at the Yangibana Rare Earths Project. Hastings has
announced that it has reduced the Yangibana delivery risk by awarding the EPC
Process Plant Contract to GR Engineering.

 

Highlights:

 

• Hastings enters binding Engineering, Procurement and Construction (EPC)
terms sheet entered with GR Engineering Services Limited (GRES) for delivery
of the beneficiation plant and associated infrastructure for the Yangibana
Rare Earths Project (Yangibana).

• The $210 million EPC contract is lower than cost estimates for an
equivalent scope under the current Engineering, Procurement and Construction
Management (EPCM) model, and includes:

o A fixed price component of $180 million for the beneficiation plant; and

o A provisional component of $30 million, mainly for earthworks associated
with the beneficiation plant and tailings storage facility.

• The EPC contract offers additional benefits and lowers risk in multiple
areas, compared with the EPCM model, including guarantees on time, cost and
product quality with first concentrate delivery in Q1 CY2025.

• GRES will commence work immediately under a three-month early works
agreement.

• Change in delivery model for the beneficiation plant is an outcome of the
ongoing Hastings

review of the capital cost, schedule and project execution strategy

 

Link here
(https://investi.com.au/api/announcements/has/4c7125b3-352.pdf?utm_source=Hastings+Tech+Metals+Email+List&utm_campaign=71b906d8e1-EMAIL_CAMPAIGN_2023_05_03_12_48&utm_medium=email&utm_term=0_8af61533ee-71b906d8e1-%5BLIST_EMAIL_ID%5D)
to view the full Hastings announcement

 

Cadence CEO Kiran Morzaria, commented: "On behalf of the Cadence board, we are
pleased to see Yangibana take another step towards production, and in doing so
deliver a further reduction in delivery risk through a substantial cost saving
in the EPC contract. I look forward to providing further updates."

 

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, equating to approximately 1.9%
Hastings issued share capital. 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.

 

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) 207 220 1666
 James Joyce
 Darshan Patel

 Enzo Aliaj

 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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