REG - Cadence Minerals PLC - Listing of Evergreen Lithium on the ASX

Cadence MineralsAnnouncement

26/01/2023 08:30

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RNS Number : 9628N  Cadence Minerals PLC  26 January 2023

Cadence Minerals Plc

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

 

Listing of Evergreen Lithium on the Australian Stock Exchange

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that
Evergreen Lithium Limited ("Evergreen") has filed its admission Prospectus
with Australian Securities & Investments Commission and the Australian
Stock Exchange ("ASX"). Cadence owns approximately 15.8 million Evergreen
shares which are anticipated to represent 8.7% of the issued share capital of
Evergreen on admission. Evergreen's indicative timetable for admission is 10
March 2023.

 

Highlights:

Ø Evergreen Lithium has filed a listing and offering prospectus with the ASX;
the anticipated admission date is 10 March 2023.

Ø On admission, Cadence will own approximately 8.7% of Evergreen, which at
the offer price values Cadence's equity stake at AS$ 3.96 million.

Ø Evergreen intends to advance three hard rock lithium exploration projects
in Australia.

Ø The flagship Byone Lithium Project covers the north-eastern strike extent
of the lithium-and tantalum endowed Bynoe Pegmatite field;

o   The project is adjacent to Core Lithium's producing lithium mine.

o   Soil sampling on the project returned geochemical anomalies indicating
lithium mineralisation.

o   Based on soil sampling alone an initial five target zones have been
identified that contain lithium mineralisation.

Ø The second prospect, Kenny Lithium, is located within the Dundas Mineral
Field of Western Australia, close to Mt Dean and Mt Belches-Bald Hill
pegmatite fields'

o   Initial field mapping on the project has confirmed the presence of
substantial outcropping pegmatites

o   10km zone of pegmatite outcropping has been confirmed in the
North-Eastern section of the Kenny Lithium Project

o   Evergreen has recently completed a comprehensive auger program, drilling
1,731 holes. Evergreen expects the results to be available shortly after
admission.

Cadence CEO Kiran Morzaria commented: "On behalf of the Cadence board, I am
pleased that our investment into Lithium Technologies and Lithium Supplies
have materialised into soon to be listed Evergeen and its Byone and Kenny
lithium projects. Once Evergreen lists on the ASX market, it will add further
value to Cadence's rounded portfolio of listed lithium investment vehicles,
which include European Metals Holdings (AIM: EMH) and our Sonora Lithium
assets. Added to this, Cadence has exposure to the world class Yangibana rare
earths project through it's shareholding in Hastings Technology Metals (ASX:
HAS) and of course our flagship Amapa iron ore project, the value of which was
recently estimated with the publication of a pre-feasibility study, associated
post tax NPV and maiden ore reserve declaration."

 

"Your board believes that considerable potential exists across our assets to
deliver further progress as we move forward in 2023. I look forward to
reporting back with further developments."

 

Background to Cadence's investment in Evergreen Lithium

Cadence Minerals received approximately 15.8 million shares in Evergreen in
July 2022 when Cadence sold its 31.5% stake in Lithium Technologies and
Lithium Supplies ("LT and LS") to Evergreen as announced on 27 June 2022. This
initial consideration was valued at AS$ 3.16 million (£1.81 million). A
further AS$ 6.63 million (£3.80 million) shares in Evergreen are due to
Cadence on the achievement of certain performance milestones by Evergreen.
Further details of these milestones can be found in the Evergreen prospectus
available here (https://evergreenlithium.com.au/prospectus/) . Cadence's
shares may be subject to a 2-year escrow agreement as determined by the
listing rules of the ASX.

 

As of 31 December 2021, the total carrying values of LT and LS in the
Company's balance sheet was approximately £803,000. Based on the anticipated
admission price of Evergreen on the ASX, Cadence's shares in Evergreen will be
worth £2.27 million.

 

Evergreen Lithium

On acquiring LT and LS, Evergreen became the 100% owner of three exploration
tenements. The Bynoe Lithium Project and Fortune Lithium Project (awaiting
grant of exploration permit) are located in the Northern Territory, and the
Kenny Lithium Project is located in Western Australia.

 

Evergreen is listing on the ASX to develop these projects further and raise up
to AS$ 7 million via a share offer. Evergreen can advance its business model
if the listing and the offer are successful.

 

Byone Lithium Project

The Bynoe Lithium Project is Evergreen's flagship prospect. Evergreen's
primary focus is to explore and discover an economically viable lithium
resource for development. The Bynoe Lithium Project is located south of Darwin
in the Northern Territory, Australia. It covers the north-eastern strike
extent of the lithium- and tantalum-endowed Bynoe Pegmatite Field.

 

The Bynoe Pegmatite Field is host to Core Lithium Ltd's (ASX: CXO) ("Core
Lithium" or "Core") high-grade Finniss lithium deposit, which is adjacent to
Core Lithium's producing lithium mine. Core Lithium's deposit is just 1.2km
from the Bynoe Lithium Project. Soil sampling conducted on the Bynoe Lithium
Project has returned geochemical anomalies that indicate the lithium
mineralisation continues along the trend into the Company's Bynoe Lithium
Project. Based on the initial stages of soil sampling alone (which only covers
approximately 10-20% of the Bynoe Lithium Project area, an initial five target
zones have been identified that contain lithium mineralisation. The Bynoe
Lithium Project covers an area of 231 km(2), making Evergreen one of the
largest tenement holders within the central Bynoe Pegmatite Field after Core
Lithium.

 

In recent years, exploration activities within the Bynoe Field have been
focused on the discovery of economic lithium mineralisation hosted in
pegmatites, the most successful of which has been Evergreen's neighbour, Core
Lithium, which in a very short time frame, has delineated a JORC mineral
resource of 18.9mt at 1.32% Li2O at its Finniss Project. Core Lithium has
achieved excellent drilling intercepts at their BP33 prospect of 107 metres at
1.70% Li2O, located within 1km of the Bynoe Lithium Project and Core Lithium's
Finniss (BP33) mine.

 

After listing and completion of its capital raise, Evergreen intends to expand
the geochemical soil sampling significantly. In addition, Evergreen recently
completed an Ambient Noise Topography ("ANT") Survey and is currently awaiting
its geophysical interpretation. Core Lithium recently used ANT (refer to ASX
announcement Core Lithium, 1 August 2022, "BP33 drilling delivers outstanding
results"). Core noted the results were an "outstanding success" and showed
"excellent correlation" with known pegmatite bodies that were already
identified by drilling.

 

Once the baseline geochemical and geophysical data is collected, Evergreen
plans to systematically drill test the anomalies, starting with the highest
priority along strike from Core Lithium's mineralised pegmatites.

 

Kenny Lithium Project

The Kenny Lithium Project is located within the Dundas Mineral Field of
Western Australia and 50km East of Norseman in the Eastern Goldfields. It is
close to the Mt Dean and Mt Belches-Bald Hill pegmatite fields, and there are
multiple significant lithium discoveries located in close proximity to the
Kenny Lithium Project

 

The Kenny Lithium Project covers an area of 210 km(2), providing Evergreen
with a large and prospective land holding within the Dundas mineral field.

 

The Kenny Lithium Project lies at the southern end of the Norseman-Wiluna
Granite Greenstone Belt within the Archaean Yilgarn Craton. This is a
well-known lithium-producing region/mineral field and is host to the
significant Mount Marion, Bald Hill and Baldania mines, respectively, which
are close to the Company's Kenny Lithium Project.

 

Initial field mapping on the Kenny Lithium Project has confirmed the presence
of substantial outcropping pegmatites, whereby an approximate 10km zone of
pegmatite outcropping has been confirmed in the North-Eastern section of the
Kenny Lithium Project, which significantly exceeds what has already been
identified by the Government Survey of Western Australia (GSWA).

 

Evergreen's goal is to explore and discover an economic lithium resource for
subsequent development. As with the Company's Bynoe Lithium Project, minimal
geochemical work has been undertaken within the tenure; however, historical
results have proven encouraging. Evergreen has recently completed a
comprehensive auger program, drilling 1,731 holes. Evergreen expects the
results to be available following the  listing. After that, the Company will
design a drill program to drill test any targets identified to be prospective
for lithium mineralisation and test the economic potential.

 

Fortune Lithium Project

The Fortune Lithium Project (EL31828) is located in the Northern Territory and
is currently in its application phase and undergoing Native Title procedures.
Evergreen Fortune Lithium Project is 784.71km² and is located 150km northeast
of Alice Springs, in the Arunta region. The tenement itself has not been
historically explored for lithium.

 

The Fortune Lithium Project lies in the Mesoproterozoic Aileron Province of
the Arunta Region. The Arunta Region comprises a sequence of Proterozoic rocks
known to host tin-tantalum-tungsten pegmatites. Historic pegmatite-hosted
workings targeting tin-tantalum and mica are recorded in the vicinity of the
Fortune Lithium Project area. There has been no exploration activity on the
Fortune Lithium Project tenement specifically. The Fortune Lithium Project is
currently in the application phase and is, therefore not granted tenure.

 

 

 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

- Ends -

 

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.

 

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.

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

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