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

Cadence MineralsAnnouncement

04/08/2023 09:00

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RNS Number : 3585I  Cadence Minerals PLC  04 August 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") that it has
executed the Engineering, Procurement and Construction (EPC) contract with
West Australian company GR Engineering Services Limited ("GRES") (ASX: GNG)
for delivery of the Yangibana beneficiation plant and associated
infrastructure.

 

The contract has no material departures from the binding terms sheet that both
parties signed in May 2023, including the contract value of $210 million. It
includes a process guarantee which aligns with the current planned ramp up of
the beneficiation plant and supported by all process test work completed to
date

 

Highlights:

 

·      Long form EPC contract signed with GR Engineering Services (GRES)
for delivery of the beneficiation plant and associated infrastructure for the
Yangibana Rare Earths Project.

·      Fixed price contract award for $210 million in line with the
staged development strategy endorsed by the Board in May 2023:

o  Fixed price component of $180 million for the beneficiation plant.

o  Provisional component of $30 million mainly for the plant and TSF
earthworks.

·      EPC contract minimises risk of capital cost increases and
provides guarantees on project

schedule, product throughput and plant recovery.

·      GRES continuing to work with Hastings on engineering and
procurement under an early works agreement until mobilisation to site in Q4
2023 following satisfaction of conditions precedent including finalisation of
project funding as standard for an EPC contract.

·      Construction planned to be complete in Q1 2025 with first
concentrate on truck in Q2 2025 Hastings

 

Link here
(https://investi.com.au/api/announcements/has/6dd31402-cae.pdf?utm_source=Hastings+Tech+Metals+Email+List&utm_campaign=f0ee5acb8e-EMAIL_CAMPAIGN_2023_08_03_10_56&utm_medium=email&utm_term=0_8af61533ee-f0ee5acb8e-%5BLIST_EMAIL_ID%5D)
to view the full Hastings announcement

 

Hastings Executive Chairman Charles Lew commented: "The signing of the EPC
contract with GR Engineering for the delivery of the beneficiation plant at
Yangibana is another important milestone in our development plan for bringing
this world-class project into production. The fixed price contract and strong
credentials of GR Engineering gives us a high level of confidence in the
delivery of this critical infrastructure ahead of first rare earth concentrate
production in Q2 2025."

 

GR Engineering Services Managing Director, Mr Tony Patrizi, said: "GR
Engineering is pleased to be working on this world-class rare earths project
in the Gascoyne region of Western Australia. The fact that Hastings has
recognised the high level of expertise and experience within the GRES process
team and broader business is extremely satisfying. We look forward to engaging
closely with the Hastings team to deliver safe and successful outcomes for
this important project in the critical minerals sector."

 

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

 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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