REG - Cadence Minerals PLC - European Metals Holdings - Cinovec Lithium Project

Cadence MineralsAnnouncement

11/04/2024 10:15

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RNS Number : 2761K  Cadence Minerals PLC  11 April 2024

Cadence Minerals Plc

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

 

European Metals Holdings #EMH - Successful production of lithium hydroxide at
Cinovec

 

Cadence Minerals (AIM: KDNC; OTC: KDNCY) is pleased to note the announcement
by European Metals Holdings Limited ("European Metals" or "EMH") (ASX &
AIM: EMH, OTCQX: EMHXY, ERPNF and EMHLF) in regard to the Cinovec Lithium
Project ("Cinovec" or the "Project").

 

EMH has announced the successful production of lithium hydroxide monohydrate
from pregnant leach solution manufactured during the recent larger scale
Cinovec pilot programme.

 

Highlights:

·     The pilot programme has confirmed viability of the Lithium Chemical
Plant ("LCP") process flowsheet for the industrial scale production of either
lithium carbonate or lithium hydroxide.

·     Crude lithium carbonate from the pilot programme has been converted
into exceptionally clean battery-grade lithium hydroxide monohydrate at
laboratory scale.

·     The pilot programme processed ore is fully-representative in all
respects of the run-of-mine for the first seven years of mining planned at
Cinovec, including average grade and expected rock-type mix from the bulk
mining.

 

The Cinovec LCP flowsheet produces a high purity lithium sulphate solution
which is capable of being used to produce either lithium carbonate or lithium
hydroxide. The first stage (un-reprocessed) crude lithium carbonate produced
is very close to battery grade and easily upgraded to battery grade in a
single bicarbonation step (see the Company's ASX/ AIM announcement of 9
November 2023 "Successful Battery-Grade pilot programme for Cinovec Lithium
Project").

 

The Cinovec LCP flowsheet lends itself to producing battery-grade lithium
hydroxide monohydrate either directly, or indirectly via re-processing the
first stage crude lithium carbonate. The project team has assessed the
relative industrial process risks of manufacturing battery-grade lithium
hydroxide monohydrate using both methods. It was concluded the indirect method
was regarded as the lower-risk method, when considering process risks and
costs.

 

This method of production of lithium hydroxide monohydrate has been tested as
part of the pilot programme and has successfully produced battery-grade
lithium hydroxide monohydrate at a laboratory scale.

 

Link here
(https://www.londonstockexchange.com/news-article/EMH/successful-production-of-lithium-hydroxide/16417638)
to view the full EMH announcement

 

EMH Executive Chairman, Keith Coughlan commented: We are extremely pleased
with the results from the lithium hydroxide test program.  The lithium
hydroxide produced was of the highest grade possible and exceptionally clean.
This, when combined with the ability to produce either battery grade lithium
carbonate or hydroxide enables a wider range of offtakers for the Cinovec
product."

 

Cadence CEO Kiran Morzaria added: "The Cadence management team are delighted
to see EMH achieve another milestone step at Cinovec. In producing this high
grade lithium hydroxide, the EMH team have opened up new offtake opportunities
for the end product."

 

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 3.2% per cent 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) 20 7220 1666
 James Joyce
 Darshan Patel

 Fortified Securities - Joint Broker            +44 (0) 20 3411 7773
 Guy Wheatley

 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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