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

Cadence MineralsAnnouncement

13/06/2023 10:00

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RNS Number : 5486C  Cadence Minerals PLC  13 June 2023

13/06/2023

 

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") and Neo
Performance Materials Inc (TSX: NEO) ("Neo") regarding the signing of a
non-binding Heads of Agreement for rare earth concentrate offtake from the
Yangibana Rare Earths Project ("Yangibana") and further downstream
collaboration.

 

The agreement signals the intention of Hastings and Neo to take an important
step forward in a potential strategic partnership between the two companies to
strengthen their shared vision for an integrated mine-to-magnet rare earth
supply chain. The Agreement outlines the framework for both parties to
negotiate a binding offtake agreement and pursue further downstream technical
and commercial collaboration.

 

Highlights:

 

·      Hastings and Neo sign a non-binding Heads of Agreement, outlining
the framework for the parties to negotiate a binding commercial offtake
agreement for the supply of rare earth concentrate from Stage 1 of the
Yangibana Rare Earths Project.

·      In Yangibana Stage 1, Hastings would supply up to 25,000 tonnes
per annum of concentrate from Q1 CY2025 for Neo's downstream processing
facilities across Europe and Asia, to be followed by up to 10,000 tonnes per
annum of Mixed Rare Earth Carbonate upon completion of Stage 2

·      The offtake arrangement for concentrate from Yangibana would
provide an additional source of feedstock for NPM Silmet OÜ ("Silmet"), Neo's
rare earth separation facility in Sillamäe, Estonia

·      Silmet plans to produce separated rare earth oxides for Neo's
sintered rare earth permanent magnet manufacturing plant under development in
nearby Narva, Estonia, which is expected to supply the European electric
vehicle and renewable energy markets

·      The contemplated offtake arrangement could cover up to 70% of
Stage 1 and 2 Yangibana production for an initial period of 10 years

·      The Agreement also provides for cooperation in the areas of
evaluating joint downstream processing opportunities, technical, and
commercial collaboration

 

Link here
(https://investi.com.au/api/announcements/has/01d3494e-ca8.pdf?utm_source=Hastings+Tech+Metals+Email+List&utm_campaign=372a09d679-EMAIL_CAMPAIGN_2023_06_13_12_37&utm_medium=email&utm_term=0_8af61533ee-372a09d679-%5BLIST_EMAIL_ID%5D)
to view the full Hastings announcement

 

Hastings Executive Chairman Charles Lew commented: "The signing of this Heads
of Agreement builds on Hastings' strategic investment in Neo Performance
Materials, representing a significant step forward in our vision to advance
synergies between both companies with a view to creating a fully integrated
mine-to-magnet supply chain. We share this vision with our partner Wyloo
Metals, who has been very supportive in our mine-to-magnet strategy as we see
a unique opportunity to be a major player in building a European centric
magnet supply chain during this decade. This agreement with Neo represents the
first step in a strategic partnership that will establish Hastings as a
reliable supplier of rare earth feedstock to the European permanent magnets
industry, and further strengthens the staged development strategy for the
Yangibana Project, with a pathway to early project cashflows from Stage 1
concentrate sale."

 

Neo Performance Materials CEO, Constantine Karayannopoulos, said: "This
initiative supports Neo's strategic efforts to continue to globally diversify
our sources of rare earth feedstock and to provide our customers with maximum
supply chain optionality. The Yangibana resource is an attractive potential
source of magnetic rare earths--NdPr in particular--and it could contribute to
meeting the feedstock targets of our planned Estonia magnet manufacturing
facility as well as a potential future Page 2 of 4 expansion in North America.
Neo looks forward to working toward a definitive agreement with Hastings on
the material from the Yangibana project."

 

Cadence CEO Kiran Morzaria, commented: "To echo the words of Hastings Chairman
Charles Lew, today's agreement marks another step along the road for the
Yangibana mine-to-magnet chain. Cadence remain enthusiastic shareholders and
supporters of Hastings Technology Metals and the Yangibana Rare Earths
project, and we look forward to 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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