REG - Cadence Minerals PLC - Update EMH Land secured for Cinovec lithium plant

Cadence MineralsAnnouncement

09/06/2023 12:00

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RNS Number : 2786C  Cadence Minerals PLC  09 June 2023

09/06/2023

 

Cadence Minerals Plc

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

 

Corporate Update - European Metals Holdings #EMH: Land secured for Cinovec
lithium plant

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the
announcement by European Metals Holdings Limited (ASX & AIM: EMH, OTCQX:
EMHXY, ERPNF and EMHLF) that Geomet s.r.o (its 49% owned subsidiary) has
agreed to purchase land at the industrial site "Dukla" in the Újezdeček
Municipality, 6.2 km south of the planned Cinovec Mine portal area, on which
it intends to construct a lithium plant, for a total purchase consideration of
US$ 43.96m.

 

Highlights:

·      Cinovec Project Company, Geomet s.r.o. secures ownership of Dukla
industrial site for construction of the Cinovec lithium plant

·      Dukla Plant site will include ore beneficiation plant and
battery-grade lithium plant

·      Geomet s.r.o., owner of 100% of the Cinovec Project, to become
sole owner/user of site

 

The Dukla site, which is subject to an existing industrial usage permit, is
owned by four private companies, with all peripheral and adjacent land
relevant to the site held by Czech State and/or local public bodies.

 

The Cinovec Project holding company, Geomet s.r.o. (Geomet) which is a forty
nine percent (49%) owned subsidiary of European Metals, has agreed to acquire
one of the privately-held land packages and entered into exclusive and
unconditional option agreements for the purchase of the other three. The Dukla
site has been confirmed as an appropriate site upon which to build a lithium
plant for the beneficiation of Cinovec ore and production of battery-grade
lithium in accordance with the Company's ongoing DFS which is on track to be
completed in 4Q23. This confirmation has been obtained as a result of
engineering layout and design work undertaken in the DFS to-date,
geohydrological and geotechnical surveys over the site, completed in early
2023.

 

An application to the Usti Regional Department of Land Use Planning for the
rezoning of the land around the Dukla site (which is already zoned for
industrial use), ore transport corridor options and the Cinovec Mine portal
area was made in April 2022. The result of this re-zoning application is
expected to be finalised in 4Q23.

 

The Company intends to exercise its 3 options and settle these land
acquisitions after the re-zoning application has been successful, anticipated
to occur in 2024.

 

European Metals Executive Chairman Keith Coughlan commented;

" Acquiring this land secures an integral part of the Cinovec Project - the
acquisition of the land on which the Lithium Plant is to be built. The close
location of Dukla to the mine site is critical to the minimisation of
transport costs and ESG impact. The acquired land is zoned for industrial use.
 With the land now secured, DRA Global can complete the layout designs for
the lithium plant which are required as part of the DFS. This enables the
timeline to completion to be maintained."

 

Cadence CEO Kiran Morzaria added; "The Dukla land acquisition marks another
major milestone in Cinovec's evolution into a future battery grade lithium
supply hub for Europe and the rest of the world. We look forward to further
developments."

 

Link here (https://www.investi.com.au/api/announcements/emh/720cb5cb-e08.html)
to view the full EMH announcement

 

 

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 6.8% percent 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) 207 220 1666
 James Joyce
 Darshan Patel

 Enzo Aliaj

 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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