REG - Cadence Minerals PLC - NAIF A$140m Loan - Yangibana Rare Earths Project

Cadence MineralsAnnouncement

02/02/2022 13:55

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RNS Number : 5072A  Cadence Minerals PLC  02 February 2022

Cadence Minerals Plc

 

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

 

Hastings Technology Metals (ASX: HAS) - NAIF approves $140m loan for Yangibana
Rare Earths Project.

 

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to note that Hastings
Technology Metals (ASX:HAS) ("Hastings"), Cadence's joint venture partner at
the Yangibana Rare Earth Project in the Gascoyne region of Western Australia
("Yangibana" "Yangibana Project"), has announced that that it has received
approvals for a significant portion of the debt package required to fund
construction of the Yangibana Rare Earths Project, in the Gascoyne region of
Western Australia.

Highlights:

·      Northern Australia Infrastructure Facility (NAIF) approves $140
million loan facility with 12½-year tenor, subject to pre-completion
conditions.

·      NAIF loan is a critical component of the Yangibana Rare Earths
Project funding strategy underpinning finalisation of remaining funding
requirements.

·      Yangibana is the first Australian rare earths project to receive
NAIF funding.

·      First drawdown expected to occur in early 2023, aligned to
Yangibana funding schedule.

·      NAIF loan forms part of A$300-400 million of total debt financing
required for Yangibana.

·      Yangibana early works construction and design for long-lead items
underway in anticipation of plant construction commencing in September 2022
Quarter.

·      Hastings is fostering a lower carbon future and renewable energy
solutions through the Yangibana rare earths project

The Federal Government's Northern Australia Infrastructure Facility (NAIF) has
agreed to supply a A$140 million, 12½-year tenor loan facility for the
development of Yangibana. The loan has been approved by the NAIF Board and
endorsed by the Federal Minister for Northern Australia, the Honourable David
Littleproud. The NAIF loan forms part of the A$300-400 million of total debt
funding required for Yangibana and is aligned with Australia's Critical
Minerals Strategy and the Western Australian Government's Future Battery
Industry Strategy.

The Yangibana project, which comprises a mine and beneficiation plant at the
Yangibana site and a hydrometallurgical plant at the Ashburton North Strategic
Industrial Area (ANSIA) near Onslow, will become Australia's second rare
earths producer and expands the country's strategic capability in downstream
processing of rare earths minerals.

The Federal Government's commitment to Yangibana comes at a significant
inflexion point for the global rare earths sector amid a drive by rare earths
magnet-end users to secure responsible and reliable sources of supply.

The full HAS release can be found at:
https://www.investi.com.au/api/announcements/has/92de7fbd-5d2.pdf
(https://www.investi.com.au/api/announcements/has/92de7fbd-5d2.pdf)

The Financial Times also commented on the story. The link can be found here:

https://www.ft.com/content/552274c4-221a-49ac-91dd-562c51655e76
(https://www.ft.com/content/552274c4-221a-49ac-91dd-562c51655e76)

Hastings Technology Metals' Executive Chairman Charles Lew commented:
"Hastings is delighted to have received the Federal Government's support,
through the Northern Australia Infrastructure Facility, for the Yangibana rare
earths project. This is the Commonwealth's first project financing package for
the construction of a rare earth mine and production plant in Australia and
supports the rapid development worldwide of decarbonisation technologies in
e-mobility and energy. In view of the UN Climate Change Conference (COP26)
held in November 2021, Hastings is proud to be at the forefront of this
significant global transition to a lower carbon future and aims to be a part
of the global efforts towards sustainability."

"The commitment by NAIF will enable Hastings to finalise the funding
requirements for Yangibana's development and move into full-scale construction
throughout 2022, with the objective of delivering first production by 2024.
Yangibana is an amazing rare earths opportunity that will supply the world's
highest composition neodymium and praseodymium concentrate to Tier 1 customers
in Europe and Asia."

"This is an exciting time not just for Hastings but for Australia's emerging
rare earths sector. We look forward to finalising the funding arrangements
that will enable the Hastings Board to make a final investment decision in the
coming months."

Relevance to Cadence Minerals Holdings in the Yangibana Project:

Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of
the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the
remaining 70% ("Hastings"). The current mining schedule indicates that the
joint venture areas are scheduled to be mined in years 12 to 15 on the mine
plan. Further details of our ownership the mineral resources and reserves on
our jointly held leases can be found at:

https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/

 

- Ends -

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

 Novum Securities Limited (Joint Broker)  +44 (0) 207 399 9400
 Jon Belliss

 

 

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 Cadence Minerals
Plc'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 Cadence Minerals Plc. Although any forward-looking statements
contained in this announcement are based upon what the Directors believe to be
reasonable assumptions. Cadence Minerals Plc cannot assure investors that
actual results will be consistent with such forward-looking statements.

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