REG - Cadence Minerals PLC - Investment Update

Cadence MineralsAnnouncement

31/10/2022 09:00

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RNS Number : 7147E  Cadence Minerals PLC  31 October 2022

Cadence Minerals Plc

 

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

 

Investment Update

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to update shareholders
on the progress of its principal investments.

 

Highlights:

 

·      Completion of Amapa Ore Reserve Estimate supports planned 15-year
mine life

·      Cadence increases Amapa stake to 30% through conversion of loans,
capitalisation of management, consultancy, admin and cash investment. No
additional capital raising required.

·      European Metals Holdings ("EMH") reports significant developments
with the Cinovec Lithium Chemical Plant ("LCP") extraction process, which is
expected to is expected to reduce both Capex and Opex in the LCP by 10-20%.

·      Following the sale of stakes in Lithium Technologies and Lithium
Supplies ("LT & LS"), Evergreen Lithium Pty Ltd is progressing with its
listing on the Australian Stock Exchange.

·      Following the sale in working interests in the Yangibana Rare
Earths project ("Yangibana") tenements to Hastings Technology Metals (ASX:
HAS), we expect various regulatory approvals to be completed by the end of the
year.

 

Cadence CEO, Kiran Morzaria, commented: "I am delighted to report that we have
taken several significant steps forward with our flagship Amapa project. The
decision to convert loans and other costs into an increased stake in Amapa was
almost a formality following successful completion of the ORE and the
consequential progress with the PFS. With the steady increase in project
value, your board are genuinely excited at the development prospects of
Amapa."

 

I look forward to reporting further progress across all our projects in the
coming months."

 

Amapa Iron Ore Project ("Amapa" or the "Project")

 

Cadence announced in early October the completion of an upgraded and increased
Mineral Resource Estimate ("MRE"). The Measured and Indicated portion of this
MRE has been used to calculate the Ore Reserve Estimate ("ORE"). The ORE
represents the economically mineable part of a Measured and Indicated Mineral
Resource. It includes diluting materials and allowances for losses, which may
occur when the material is mined or extracted and is defined by our
Pre-Feasibility Study ("PFS").

 

We are happy to report that the ORE has been completed, and the results
support the planned 15-year mine life. The JORC 2012 compliant statement and
supporting disclosures will form part of the PFS publication, which is still
scheduled for publication this quarter.

 

Given the excellent progress at Amapa and the economics of the asset, Cadence
intends to increase its stake from 27% to 30% while still retaining its
previously announced first right of refusal to acquire 49% of the asset.

 

Cadence will earn this additional three per cent via the conversion of loans
that the Company has made to the Project, the capitalisation of management,
consultancy and other admin cost and further cash investment in the Project.
The total value of these three items is approximately US$3.3 million. Cadence
requires no additional capital raising to increase its stake

 

Once complete, Cadence will have acquired 30% of Amapa for approximately
US$9.3 million. Anglo-American valued its 70% stake in Amapa at US$ 462
million (100% US$ 660 million).

 

European Metals Holdings ("EMH")

 

EMH has announced significant developments in the processing flowsheet for the
Cinovec vertically integrated battery metals project ("Cinovec") in the Czech
Republic.

 

Highlights

 

•     The simplified Lithium Chemical Plant ("LCP") extraction process
has delivered exceptionally clean battery-grade lithium carbonate

•     LCP has the capability to deliver very high-purity lithium
hydroxide, lithium carbonate, lithium sulphate or lithium phosphate

•     The simplified process is expected to reduce both Capex and Opex
in the LCP by 10-20%.

•     LCP recoveries of 88-93% lithium proven in locked-cycle testwork,
an outright recovery improvement of 3-6% over locked-cycle testwork for
earlier, more complex flowsheet

•    LCP pilot programme to commence in 4Q CY22 with marketing samples
available to offtake partners in 1Q CY23; pregnant leach solution containing
48kg of lithium carbonate equivalent is ready to be processed

Link here for the full EMH announcement:
https://www.investi.com.au/api/announcements/emh/a4072882-271.pdf
(https://www.investi.com.au/api/announcements/emh/a4072882-271.pdf)

 

Other Investments

 

In July 2022, Cadence sold its 31.5% stake in Lithium Technologies and Lithium
Supplies ("LT & LS") to Evergreen Lithium Pty Ltd ("Evergreen"). This was
for an initial consideration of AS$3.16 million (£1.81 million)in Evergreen
shares, with a further AS$6.63 million (£3.80 million) due in Evergreen
equity on the achievement of certain performance milestones Evergreen is
progressing with its listing on the Australian Stock Exchange. We anticipate
that this will be completed by the end of this year.

 

The full announcement concerning the LT & LS sale is available here
(http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=311428221865245786)
.

 

In June 2022, Cadence entered into a binding agreement to sell its working
interests in the Yangibana Rare Earths project ("Yangibana") tenements to
Hastings Technology Metals (ASX: HAS) ("Hastings") for A$9 million (£5.1
million) to be satisfied by the issue of fully paid ordinary Hastings shares.
Cadence's 30% interest in tenements covers a small portion of Yangibana and
potentially represents one year of the 16-year mine life. Cadence and Hastings
are awaiting various regulatory approvals, and we anticipate that this will be
completed by the end of the year.

 

The full announcement concerning the Yangibana sale is available here
(http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=31142822378102698)

 

 For further information:

 Cadence Minerals plc                      +44 (0) 7879 584153
 Andrew Suckling
 Kiran Morzaria

 WH Ireland Limited (NOMAD & Broker)       +44 (0) 207 220 1666
 James Joyce
 Darshan Patel

 

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.

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.

 

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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