Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update published today by Bacanora Lithium (AIM:BCN) (“Bacanora”) on its Investment Agreement and Offtake Agreement (‘the Strategic Investment’ or ‘the Agreements’) with leading global lithium company Ganfeng Lithium Co., Ltd. (“Ganfeng” or “GFL”). As announced on 28 June 2019, the Agreements have been submitted to the relevant authorities in China for approval and completion.
The first of the approvals from the PRC Ministry of Commerce (MOFCOM) was received by Ganfeng at the end of July 2019, and Bacanora has now been informed that the second approval has been processed by NDRC (National Development and Reform Commission) and received by Ganfeng. It is anticipated that the final approval from SAFE (State Administration of Foreign Exchange) will be received following a Ganfeng board meeting to be held in the coming weeks. Bacanora will provide further updates once final approval is received.
Cadence Minerals – Holdings in BCN, Mexalit and Megalit:
Bacanora is a lithium exploration and development company. Cadence holds 30% of Mexalit and Megalit joint venture companies and approximately 0.5% of Bacanora’s equity. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico.
Summary of Key Terms of the Ganfeng Strategic Investment:
- GFL to acquire 29.99% of Bacanora
- GFL to acquire 22.5% of Sonora Lithium Ltd (“SLL”), the holding company for the Sonora Lithium Project
- Additional long-term offtake at a market-based price per tonne
- 50% of Stage 1 lithium production
- Up to 75% of Stage 2 lithium production
The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/14194708.html
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
– Ends –
|For further information:
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.
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 Board of IMC is pleased to announce that it has raised £150,000 (one hundred and fifty thousand pounds Sterling) before expenses by way of a placing (the “Placing”) of 15,000,000 (fifteen million) new ordinary shares of €0.001 each (“Shares”) in the Company at a price of 1 penny per share for cash (the “Placing Shares”), conditional only upon admission of the Placing Shares to the Official List of the FCA and to trading on the regulated market of the London Stock Exchange (“Admission”) of the Placing Shares. Additionally, the Company has resolved to allot to third parties 2,731,706 Shares at the same price (the “Fee Shares”), in satisfaction of professional fees owed by the Company. Alongside each Placing Share will be issued a warrant to subscribe for one further Share at a price of 1p per Share, exercisable for one year from the date of issue (“Warrant”). There is no intention to make application for admission to trading on any public market of the 15,000,000 Warrants being issued with the Placing Shares.
The Placing Shares and the Fee Shares will rank in all respects pari passu with the existing Shares, of which 265,014,285 are in issue. Application is being made for Admission of all 17,731,706 Shares comprising the Placing Shares and the Fee Shares, which is expected to occur on or about 23rd August 2019. The total number of Shares in issue following the Placing and issuance of the Fee Shares will be 282,745,991 (previously 265,014,285).
The net proceeds of the Placing will be applied to general working capital purposes, including acceleration of IMC’s exploration and geological work on its spoils and tailings project in Avoca, Co. Wicklow, Ireland. The Directors note the gold price has recently surpassed $1,500 per troy ounce for the first time in over six years. This is good news for IMC and, in particular, bodes well for its gold, spoils and tailings project in Avoca, Co. Wicklow.
Eamon P. O’Brien,
Dublin, 20th August 2019
The Directors of IMC, after due and careful enquiry, accept responsibility for the contents of this announcement.
REGULATORY ANNOUNCEMENT ENDS.
Kathryn Byrne: +353 85 233 6033
IMC Exploration Group plc
Graham Atthill-Beck: +44 20 7464 4091/+971 50 856 9408 / Graham.Atthill-Beck@kbrl.co.uk
Brinsley Holman: +44 20 7464 4098 / Brinsley.Holman@kbrl.co.uk
Keith, Bayley, Rogers & Co. Limited
Article from smallcaps.com
While gold has lured investors from battery metals in the short-term, lithium producers and explorers alike are pointing out current glut fearmongering in the lithium space does not account for longer-term demand, which will be driven by increasing adoption of electric vehicles and energy storage.
Lithium Australia (ASX: LIT) managing director Adrian Griffin told Small Capsthat conventional lithium production will not be able to keep up with demand by 2030.
He said the current fearmongering and analyst claims that lithium is heading towards a glut amid a rapid increase in hard rock production and a slower than expected uptake of electric vehicles does not take into account longer-term market fundamentals.
Mr Griffin added that the current oversupply situation is a temporary aberration.
Managing director and chief executive officer of Pilbara Minerals (ASX: PLS)Ken Brinsden agrees.
Speaking with Small Caps, Mr Brinsden said the lithium sector was undergoing a “rebalancing period” and the “market upset” today will be “short-lived”.
China is the only country that processes lithium into lithium carbonate and lithium hydroxide chemicals required for the battery sector.
Mr Brinsden said the current rebalancing period was a necessary stage so that China could move ahead with refining its processing technologies and building more capacity.
While China is refining its technologies, Mr Brinsden said the rest of the world has continued to “go nuts” for lithium – particularly Korea and Japan which are looking to build downstream lithium processing plants.
New chemical manufacturing capacity will be coming online next year, and electric vehicle adoption continues to grow – creating more lithium demand.
Mr Brinsden pointed out that only five years ago the lithium sector was a boutique market with most of the material funnelled into ceramics, medicine and minor end-uses.
He added that Australia essentially only has four base-load mines and even with planned expansions these mines will struggle to meet even Western Australia’s mounting requirements.
Meanwhile, lithium brine explorer BMG Resources (ASX: BMG) managing director Bruce McCracken also shares the sentiment that long-term demand drivers for the material are “becoming increasingly evident”.
“Lithium is perfect for batteries – it is light and energetic,” he added.
Mr Griffin pointed out the current lithium glut concerns were a result of “misinformation, misinterpretation and misunderstanding”.
“If global demand for lithium-ion batteries grows beyond the pundits’ wildest expectations, which it seems it may, then conventional sources of lithium supply simply will not cope with demand.”
He said to fill this gap, unconventional lithium sources will be needed.
Electric vehicles drive demand
According to Mr Griffin, about 3.5 million tonnes of lithium carbonate equivalent will be required annually by 2030 for use in electric vehicles alone, with about 50 million EVs anticipated to be on the world’s roads.
He pointed out this demand is underpinned by legislative requirements in the EV space, which require all or most vehicles on the road to be electric by 2030 in numerous countries throughout Europe and China.
Mr McCracken added that McKinsey’s latest research reveals that EV demand will “significantly ramp up” between now and 2025.
“This is a trend we see fuelled by a continuous decline in battery costs and higher energy density,” he said.
Energy storage and electronics pressure industry further
In addition to EV driven demand, the industry will be pressured for more lithium as energy storage and electronic products sectors also continue to grow.
When looking at meeting these global lithium requirements, Mr Griffin said current mining and planned projects and expansions will not meet consumption needs longer term.
He pointed out that 200,000tpa of lithium is currently produced and output from these mines will dwindle as they mature.
“New mines targeting lower grades can fill demand gaps, but alternative sources of lithium may prove more attractive as genuine supply shortages put pressure on conventional production.”
Lithium Australia plans to help fill this gap with its battery recycling and proprietary processing technologies that allow the company to develop lithium chemicals from materials generally deemed as waste including spent batteries, lithium mine tailings and other lithium minerals including lepidolite and petalite.
Meanwhile, lithium brine explorer BMG is about to commence drilling at its joint venture in in Northern Chile, with Mr McCracken pointing out and brine operations offer “several advantages” over hard rock including reduced development times and costs.
Brewer Adnams (ADB) reported a decline in first half revenues from £35.5m to £34.7m, while the loss increased from £840,000 to £1.15m. Beer volumes were 2% ahead, compared with a 1% decline in the market. Low alcohol beer sales grew. Gin sales fell because of greater competition. A fire at the Ship at Levington hampered the performance of the pubs business. Adnams made an underlying profit in 2018, thanks to a better second half performance. The new IT system went live in March and the implementation has been a distraction to management. The dividends are unchanged at 78p a share for each B share and 19.5p per A share.
Bruce Pubs (PUB) has decided to cancel trading in its 7.2% secured bonds, 31 March 2022. There are £20,000 worth of bonds admitted to the market and there have been no trades. Bruce Pubs had wanted to raise up to £20m from the bond issue. It is therefore not a surprise that Bruce Pubs believes it is not worth having a trading facility. The bonds can be redeemed early by the company.
NQ Minerals (NQMI) has produced 10,164 tonnes of lead concentrate, 7,431 tonnes of zinc concentrate and 46,863 tonnes of pyrite concentrate in the first half of 2019. An operating profit of A$3.6m was made on sales of A$23m.
TechFinancials (TECH) had $1.23m in the bank at the end of June 2019. A reduction in trade receivables meant that there was a small cash inflow from operating activities, but there was $402,000 capitalised developed on the blockchain ticketing system.
China-focused healthcare company MiLOC Group Ltd (ML.P) has raised £755,000 at 30p a share.
Queros Capital Partners (QCP) has gained a quotation for its bonds on the Frankfurt Stock Exchange
ICAMAP has acquired 7.94 million shares in easyHotel (EZH) at its offer price of 95p a share, taking its stake to 44.1%. This means that it is a mandatory cash offer.
Iofina (IOF) has launched IofinaEX Global to deal in hemp derived products in Central America and the Caribbean. Iofina will potentially link up with a government in the region that wants to develop its country as a hub for hemp derived products. There are no details of this potential partnership. The company believes that its regulatory expertise in the iodine market will be helpful in the CBD market. The US is likely to be a major market.
LightwaveRF (LWRF) has raised £1.3m at 7p a share. The smart homes equipment supplier wants the cash to finance further growth. There are also plans to secure a facility for stock.
Altitude (ALT) is considering the disposal of its Manchester-based promotion products supplier AdProducts.com. This would enable Altitude to concentrate on its AIM platform for promotional products suppliers.
Greatland Gold (GGP) has raised £4.2m at 1.85p a share and that will be used to finance exploration in the Paterson region of Australia. There has been positive exploration news from the Scallywag prospect in the Paterson region. A ground gravity survey starts this month and an induced polarisation survey next month. Then 3D modelling using the data will come up with drill targets.
Cyber security software and services provider Corero Network Security (CNS) says interim revenues are lower, but operating costs are unchanged. That means that the interim loss has increased. However, full year revenues are expected to be one-fifth higher, but higher investment in sales means that the loss will still be higher. Net cash was $3.6m at the end of June 2019.
Equals Group (EQLS) is raising up to £16m via a placing and open offer. The international payments company has raised £14m at 110p a share and up to £2m will come from the one-for-90 open offer. The cash will be used for acquisitions and working capital.
Tanfield (TAN) says that 49%-owned Snorkel International has moved back into profit in the second quarter of 2019, although the first half was still loss-making. Last year, the value of this investment in the access equipment supplier was cut from £36.3m to £19.1m.
Oil and gas producer President Energy (PPC) says that there should not be a material effect on its operations from a change in Argentinian president. Revenues are US dollar based and cash is held in the same currency, so the decline of the Argentinian peso should not be too much of a problem.
Anthony Laiker has subscribed £25,000 in Vela Technologies (VELA) at 0.1p a share. A general meeting has to approve the share issue to the executive director, as well as an issue of 6.25 million warrants exercisable at 0.15p. Approval of the conversion of £200,000 of loan notes plus interest into nearly 241 million shares will also require the company to be given the ability to issue more shares. Laiker would than own more than 301 million shares.
Gfinity (GFIN) is pulling out of its Australian joint venture because the esports company wants to focus its cash on the US and other important markets.
Workspace software provider Essensys (ESYS) says that its revenues were one-quarter higher at £20.5m in the year to July 2019. That was better than expected. Annual recurring revenues run rate is £17.3m.
Associated British Engineering (ASBE) made an increased loss of £1.81m, up from £582,000 the previous year. The company’s main pension fund remains a worry and there are ongoing discussions with the Pensions Regulator. There are net liabilities of £3.71m after the pension deficit of £4.98m.
Nanoco (NANO) generated revenues of £7.3m in the year to July 2019, more than double the previous year. The cadmium-free quantum dots developer had £7m in cash at the end of July and expects to have £6m at the end of 2019.
Highway Capital (HWC) has issued €30,000 of new convertible loan notes. These are convertible to a value in excess of 50% of the net asset value of the company at the time of conversion. The terms of an existing convertible loan note of £100,000 have been changed and the conversion price is 5p a share.
Shareholders in Avocet Mining (AVM) have voted against the resolution to wind up the company. This means that it is likely to go into administration unless there is a viable transaction that the board can assess.
Global Resources Investment Trust (GRIT) wanted shareholders to approve the voluntary liquidation of the company, but there is not enough support for the proposal. GRIT has sold 430 million shares in Kalia for £225,000 in order to provide working capital. A new board is being appointed to undertake a strategic review. James Normand will become chairman and Martin Lampshire as an executive director. Stephen Roberts will become a non-executive director.
IMC Exploration (IMC) has been awarded two additional licences in County Wexford. They adjoin an existing licence where there are indications of gold.
Book publisher Quarto (QRT) reduced its interim loss from $6.6m to $4m on flat revenues of $56.4m. There was a change in the mix of revenues with children’s books increasing revenues by14% and in geographic terms more of the revenues were in the US, which moved into profit. Net debt has fallen by 11% to $65m.
Zenith Energy (ZEN) says that drilling has commenced at well C-37 in the Jafarli oilfield.
Pendragon (PDG) is selling its Chevrolet dealership in California for £17.2m. GM can alternatively nominate another purchaser if it wants. The rest of the US business will be sold.
Kibo Energy PLC, the multi-asset, Africa focused, energy company, is pleased to announce that it has been granted seven Mining Rights for its Mbeya Coal to Power Project (‘MCPP’) in Tanzania, further to the announcement dated 9 July 2019.
The Company continues to advance the MCPP in Tanzania, one of its four international power projects, which the board believes represents an exciting opportunity. Accordingly, the application process for seven Mining Licences covering the original Special Mining Licence (‘SML’) application area has been completed by the Mining Commission, and an Offer Letter for each application has been issued to Kibo’s 100% owned subsidiary, Mbeya Coal Ltd, each of which it has subsequently accepted. This constitutes approval and grant of the Mining License applications, subject to Kibo remitting all required statutory payments related to the issuance of a Mining Right.
The MCPP has a 120.8 Mt NI 43 101 thermal Coal Resource covered by the seven Mining Licences now granted. A Definitive Feasibility Study confirmed the economic viability of the mining project with an indicated IRR of 69.2%. Grant of the Mining Rights will enable commercial mining activity to commence.
Louis Coetzee, CEO of Kibo, commented, “The successful delivery of the MCPP is gaining momentum. Receiving these seven Mining Rights to enable commercial mining activity is another key milestone, which we anticipate will provide a better economic outcome for all concerned stakeholders and further clarity regarding the project’s ongoing development, especially when the continued progress that has been made recently in securing offtake for the Mbeya Power Plant is considered as well. As I mentioned in an earlier announcement, we are delighted with the excellent cooperation and support by the Mining Commission of Tanzania and look forward to providing further updates in due course.”
The latest figures have revealed there are 9,300 EV charging stations in the UK compared to 8,400 fuel stations
(Kitco News) – Goldman Sachs Group upgraded its gold forecast for the first time this year, upping its 3-month and 6-month projections to $1,575 and $1,600 an ounce in light of escalating trade war tensions.
Gold prices were solidly above $1,500 an ounce on Monday — a level that was hit last week for the first time since 2013.
After rising nearly 4% last week, gold’s rally is far from over, according to analysts at Goldman, who see more upside in the yellow metal.
“Gold prices have increased further as a weaker CNY sparked substantial U.S. and global growth fears. With growth worries likely to persist, gold could rise further, driven by an increased ETF allocation from portfolio managers, who continue to under-own gold. We raise our 3, 6, 12 month gold price forecasts from $1,450, $1,475, $1,475/toz to $1,575, $1,600 and $1,600/toz, respectively,” Goldman analysts said in a note.
The U.S.-China trade war has entered stage two this summer as U.S. President Donald Trump announced a 10% tariff on the remaining $300 billion worth of Chinese imports starting September 1, the note said.
“With the U.S. and China taking a harder line on trade, our economists no longer expect a trade deal before the 2020 president election—a fundamental change in view,” the analysts including Sabine Schels wrote on Wednesday.
A currency war with depreciating CNY plays a key role in trade war tensions and Goldman’s outlook for the precious metals.
“Previously, China opted for stability and defended its currency in order to facilitate the ongoing trade negotiations in the background. Now, FX appears to be playing an increasingly central role in the trade tensions,” the analysts said. “We estimate that a 10% depreciation of CNY vs USD would spell as much as 13% downside to the S&P GSCI industrial metals sub-index.”
Weaker CNY, in this case, means higher gold prices due to increased global growth fears, added Goldman.
“The depreciation of the CNY led to an increase in ‘fear’, lower long term U.S. rates, and thus a higher gold price. Thus, a substantial depreciation of the CNY could lead to more ‘fear’ regarding U.S. and global growth akin to early 2016 and should be bullish gold,” the analysts stated.
Gold’s ETF demand is also on a strong uptrend, with Goldman upping its 2019 forecast from 300 tonnes to 600 tonnes.
“Now with the DM CAI persistently low, the trade war escalating, global equities selling off and volatility spiking, it looks like our risk scenario is playing out. Indeed, gold ETFs have recently built momentum almost as strong as in 2016 and we believe that can be maintained in the short term,” the analysts said.