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RNS Number : 1566M Cadence Minerals PLC 12 September 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
thyssenkrupp Materials Trading ("TMT") to expand the terms of the offtake
contract signed in April 2021 to align with Stage 1 development for the
Yangibana Rare Earths Project.
Hastings has agreed with TMT to include up to two-thirds of Stage 1 rare earth
concentrate from Hastings' flagship Yangibana Rare Earths Project ("Yangibana"
or the "Project"). The remaining one-third of production during the first five
years not under TMT offtake is available to Hastings to maximise value through
spot sales or other commercial arrangements.
Highlights:
· Hastings and TMT have agreed to expand the terms of the offtake
contract signed in April 2021 to align with Stage 1 development for the
Yangibana Rare Earths Project.
· TMT offtake expanded to rare earth concentrate under the Stage 1
development plan, in addition to Mixed Rare Earth Carbonate ("MREC").
· TMT also commits to increasing its volume to two-thirds of
Yangibana's annual production volume for the first five years, commencing in
Q2 2025.
All other terms and conditions of the contact signed with TMT on 20 April 2021
remains unchanged. The offtake terms will satisfy the Project's debt financing
and bankability requirements underpinning the optimal funding structure.
The expanded offtake is aligned with the two-stage development strategy for
the Yangibana Project, as announced on 31 May 2023, supporting an enhanced
project delivery model that enables a pathway to first concentrate production
in 1H 2025 and early cash flows. Hastings' Stage 2 development of a
hydrometallurgy plant or via third party tolling of concentrate during Stage 1
will produce up to 15,000tpa of MREC containing ~3,400tpa of NdPr oxides.
thyssenkrupp Materials Services is the biggest mill-independent materials
distributor and service provider in the Western world with around 380
locations, including around 260 warehouse sites, in more than 30 countries.
The versatile range of services offered by the materials experts allows
customers to focus even more strongly on their individual core businesses.
Link here
(https://investi.com.au/api/announcements/has/8306e7de-d0e.pdf?utm_source=Hastings+Tech+Metals+Email+List&utm_campaign=bfc82c2d11-EMAIL_CAMPAIGN_2023_09_12_01_09&utm_medium=email&utm_term=0_8af61533ee-bfc82c2d11-%5BLIST_EMAIL_ID%5D)
to view the full Hastings announcement
Hastings Executive Chairman Charles Lew commented: "Building on our strong
relationship with thyssenkrupp Materials Trading, we are pleased to have
extended the terms of the offtake to increase the committed volume and include
concentrate as well as MREC from Stage 1 of the Yangibana Project to meet
bankability requirements."
"We are at an advanced stage of finalising the optimal project debt finance
and this commitment from thyssenkrupp reiterates the cooperative spirit in
which we work with our long term partners to reach our objective of bringing
Yangibana into production".
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. 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. Currently Cadence holds approximately 1.4% of
Hastings issued share capital.
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.
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