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Cadence Minerals #KDNC – Holdings in Company

TR-1: Standard form for notification of major holdings

 

 

NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft Word format if possible)i

1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:

Cadence Minerals Plc

 

 

1b. Please indicate if the issuer is a non-UK issuer  (please mark with an “X” if appropriate)

Non-UK issuer

2. Reason for the notification (please mark the appropriate box or boxes with an “X”)

An acquisition or disposal of voting rights

An acquisition or disposal of financial instruments

An event changing the breakdown of voting rights

Other (please specify)iiichange of attribution of the nature of the holding (USD convertible instrument translated to GBP)

X

3. Details of person subject to the notification obligationiv

Name

Trafalgar Trading Fund Inc.

City and country of registered office (if applicable)

Cayman Islands

4. Full name of shareholder(s) (if different from 3.)v

Name

City and country of registered office (if applicable)

5. Date on which the threshold was crossed or reachedvi:

14/10/19

6. Date on which issuer notified (DD/MM/YYYY):

15/10/19

7. Total positions of person(s) subject to the notification obligation

% of voting rights attached to shares (total of 8. A)

% of voting rights through financial instruments
(total of 8.B 1 + 8.B 2)

Total of both in % (8.A + 8.B)

Total number of voting rights of issuervii

Resulting situation on the date on which threshold was crossed or reached

n/a

9.04%

9.04%

105,461,968

Position of previous notification (if

applicable)

n/a

8.97%

8.97%

8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii

A: Voting rights attached to shares

Class/type of
shares

ISIN code (if possible)

Number of voting rightsix

% of voting rights

Direct

(Art 9 of Directive 2004/109/EC) (DTR5.1)

Indirect

(Art 10 of Directive 2004/109/EC) (DTR5.2.1)

Direct

(Art 9 of Directive 2004/109/EC) (DTR5.1)

Indirect

(Art 10 of Directive 2004/109/EC) (DTR5.2.1)

SUBTOTAL 8. A

 

 

B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))

Type of financial instrument

Expiration
date
x

Exercise/
Conversion Period
xi

Number of voting rights that may be acquired if the instrument is

exercised/converted.

% of voting rights

Convertible loan note

01.09.20

08.07.19-01.09.20

9,529,978.79

9.04%

SUBTOTAL 8. B 1

9,529,978.79

9.04%

 

 

B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))

Type of financial instrument

Expiration
date
x

Exercise/
Conversion Period 
xi

Physical or cash

settlementxii

Number of voting rights

% of voting rights

SUBTOTAL 8.B.2

 

 

 

9. Information in relation to the person subject to the notification obligation (please mark the

applicable box with an “X”)

Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii

X

Full chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held starting with the ultimate controlling natural person or legal entity
xiv (please add additional rows as necessary)

Namexv

% of voting rights if it equals or is higher than the notifiable threshold

% of voting rights through financial instruments if it equals or is higher than the notifiable threshold

Total of both if it equals or is higher than the notifiable threshold

10. In case of proxy voting, please identify:

Name of the proxy holder

The number and % of voting rights held

The date until which the voting rights will be held

11. Additional informationxvi

Place of completion

Hong Kong

Date of completion

15/10/19

Cadence Minerals (KDNC) – Bacanora Lithium (AIM:BCN) Completion of Strategic Investment by Ganfeng Lithium and Board Changes.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update published today by Bacanora Lithium (AIM:BCN) (“Bacanora”) on the Strategic Investment by leading global lithium company Ganfeng Lithium Co., Ltd. (“Ganfeng” or “GFL”). As announced on 28 June 2019, the signed Investment Agreement and Offtake Agreement, which together make up the Strategic Investment, were submitted to the relevant authorities in China for approval. Completion of the last of the relevant approvals has now been obtained and Bacanora has now received the £21,963,740 of funds from Ganfeng in exchange for a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% JV investment directly in the Sonora Lithium Project (‘Sonora’). It is expected that the 57,600,364 shares in Bacanora will be admitted to trading on or around 18 October 2019.

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.

Update on Ganfeng and current activities at Sonora.

Ganfeng has recently announced its intention to proactively advance the development of Bacanora’s Sonora lithium clay project during the second half of 2019 with a number of initiatives. These will support Ganfeng’s target of 200,000 tonnes per annum lithium carbonate equivalent production capacity by 2025, although final capacity expansion will be based on changes in, and assessment of, future market demand for lithium products.

The Bacanora project team in Mexico continues to progress the final design work for the mine, concentrator and kiln sections of the processing plant. The Ganfeng technical team has initiated work on the hydrometallurgical circuit and is reviewing sourcing key sections of the lithium production equipment from current equipment suppliers in China.

Changes to Board of Directors.

Mr. Wang Xiaoshen, the Vice President of Ganfeng and the vice-chairman of its board of directors, is today appointed a director of Bacanora Lithium plc.

The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/14264020.html

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. 

– Ends –

 

For further information:

Cadence Minerals plc                                                    +44 (0) 207 440 0647
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Broker)                                 +44 (0) 207 220 1666
James Joyce  
James Sinclair-Ford  
   
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 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.

 

Cadence Minerals (KDNC) – Auroch Minerals (ASX: AOU) – Saints Nickel Project Drilling Update.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update today from Auroch Minerals Limited (ASX: AOU) (“Auroch”) on its maiden drilling programme at its recently-acquired Saints Nickel Project (Saints), located approximately 65km northwest of Kalgoorlie and 7km east of the Goldfields Highway. The latest diamond drill-hole SNDD005 intersected 1.60m of semi-massive to massive sulphide mineralisation. The mineralisation is nickeliferous, with significant pentlandite (one of the major nickel sulphide ore minerals) observed intergrown with pyrrhotite, along with pyrite and chalcopyrite (a copper sulphide ore mineral). The interval has been processed and sampled by the Auroch team and assays are pending.

Cadence Minerals Holding in Auroch

Cadence currently owns approximately 1% of the equity in Auroch Minerals, which is an exploration company targeting principally zinc, cobalt and lithium.

Highlights:

  • 1.60m of nickeliferous semi-massive to massive sulphide mineralisation intersected in drill-hole. SNDD005 of maiden drilling programme (assays pending)
  • Disseminated to massive sulphide mineralisation intersected in all five drill-holes completed to-date (assays pending).
  • Drilling programme 50% completed and progressing on time and budget.
  • Down-hole electromagnetic (DHEM) surveys to be undertaken over the coming week on all completed drill-holes.
Massive pyrrhotite – pentlandite (nickel sulphide) – pyrite – chalcopyrite over 1.60m in drill-hole SNDD005 at Saint Patricks

Auroch Managing Director Aidan Platel commented: “We are very pleased with the progress of our maiden drilling programme at the Saints Nickel Project. We are halfway through the programme and progressing on-schedule and on-budget, and the drilling has been of a high standard. The nickeliferous massive sulphides intersected in drill-hole SNDD005 are very interesting and we look forward to receiving the assay results as soon as possible. With 5 holes remaining to drill, all of the assay results still to come and down-hole EM surveys commencing next week, we look forward to receiving a large amount of data over the next two months that will guide the next phase of drilling at the Saints Nickel Project in early 2020, and will continue to update the market as this information is received.”

The full release can be found at: https://www.investi.com.au/api/announcements/aou/4dc13449-07e.pdf

Cadence Minerals CEO Kiran Morzaria commented: “We are pleased to note that the Saints Nickel drilling programme is now 50% complete, and has been delivered on schedule and on budget. This is an exciting period for Auroch shareholders as we await the first assay results.”

– Ends –

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce  
James Sinclair-Ford  
   
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 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.

Andrew Hore Quoted Micro 30 September 2019

NEX EXCHANGE

Peel Hunt has edged up its pre-tax profit forecast for brewer and pubs operator Shepherd Neame (SHEP) following the publication of its figures for the year to June 2019. They showed revenues of £145.8m and pre-tax profit of £11.4m, which was slightly better than expected. Brewing profit more than halved to £900,000 after the Asahi contract ended, but this was more than made up for by the contribution from managed and tenanted pubs. Own-brewed volumes have risen by 5.8% in the first few weeks of the year and managed ad tenanted pubs are showing like-for-like income increases. Debt costs will be lower than previously expected so the 2019-20 pre-tax profit forecast has moved from £11.5m to £11.7m, which will allow a slightly higher anticipated dividend of 31p a share – twice covered by earnings. There is potential to acquire more pubs.

In the 17 months to May 2019, pubs operator and automotive dealer Barkby Group (BARK) made a pre-tax profit of £75,000 on revenues of £6.29m. Stripping out the amount acquisitions were made under net asset value and acquisition cost, the profit is £135,000. The addition of pub sites, taking the total to six gastropubs and inns, and the purchase of Centurian Automotive, will significantly increase revenues in the latest 12-month period. The plan is to have up to 12 pub sites within five years.

Karoo Energy (KEP) is changing its name to IamFire and raising £143,000 at 2.4p a share. Burns Singh Tennent-Bhohi has been appointed as an executive director and Jeremy Ross joins as a non-executive. They are both directors of cannabis company Eurocann International (BUD). The existing business is being sold to Noel Lyons and other opportunities in the oil and gas and base and precious metals sectors will be assessed.

National Milk Records (NMRP) has been hit by a cyber attack and this will reduce profit this year. It has interrupted IT operations and EBITDA is set to be 10% lower than expected in the year to June 2020.

WH Ireland has published a broker note on Cadence Minerals (KDNC) and this suggests that the 27% stake in the Amapa iron ore mine in Brazil is a potential company maker, even before any benefits from the lithium project investments. The mine produced between 2007 and 2014 before being closed because of an incident at the port on the Amazon and a falling iron ore price. The total resource is estimated at 245Mt grading 41% Fe, but this figure dates back to 2012. The mine life could be 15 years. Capex of $168m will be required to restart mining and processing. The 27% stake will effectively cost Cadence less than £6m. The other shareholder is Singapore-based commodity trader IndoSino. If other investors are sought, then Cadence has the right to increase its stake to 49%.

Primorus Investments (PRIM) plans to consolidate every 20 existing shares into one new share. A general meeting will be held on 16 October. Primorus expects its A$500,000 loan note with Zuuse to be repaid, plus interest, in the next couple of weeks.

St Mark Homes (SMAP) reported an improvement in interim pre-tax profit from £18,000 to £84,000. The housebuilder achieved this improvement because of a much larger share of the operating profit in a joint venture and increased interest receivable. Admin expenses rose even though revenues were lower. NAV is 126p a share.

Recently floated cash shell World High Life (LIFE) plans to acquire Love Hemp in return for £4m in cash and the issue of 30 million shares. A further £2m could become payable in the next three years depending on the achievement of turnover targets. If more than target turnover is achieved in any year then the vendors will receive 5% of the excess. Love Hemp is a supplier of CBD and hemp products and it made a pre-tax profit of £532,000 on turnover of £2.5m in the year to June 2018. World High Life plans to raise up to £5m in order to finance the acquisition.

Ananda Developments (ANA) says joint venture DJT has applied for a licence to grow >0.2% THC cannabis and has been registered with the Drugs Licensing and Compliance Unit of the Home Office. DJT has acquired Aristaeus Elements, which is setting up as a cannabis extraction and processing facility, for £1 and assumption of debt of £51,000 – the deposit paid for the equipment for the plant. The plan is to finance the investment in the facility through debt secured against offtake contracts.

Blockchain-related investment company Coinsilium Group Ltd (COIN) reported a dip in revenues from £1.33m to £109,000, but a reversal of an impairment charge and gains on financial assets meant that it still made a pre-tax profit of £242,000, down from £554,000 the previous year. The non-cash gains meant that cash fell from £592,000 to £475,000 over the six months to June 2019. NAV increased from £2.36m to £2.59m.

First Sentinel (FSEN) reported a fall in interim revenues from £963,000 to £710,000, while the loss increased from £46,000 and £114,000.

Panther Metals (PALM) says that early identification of an area of the Big Bear project in Ontario shows high gold grades. The 100% owned area has been extended via the acquisition of four additional mining claims.  

NQ Minerals (NQMI) generated revenues of £14.2m in the first half of 2019. The Hellyer polymetallic mine was not in production in the corresponding period last year. There was still a £17.9m loss because of high admin expenses. There was £65.6m of debt at the end of June 2019 and management believes that it can get more favourable terms now the mine is up and running.

AIM

Domain name registry Minds + Machines (MMX) is improving the quality of its earnings and it is nearer to sorting out legacy problems. Renewal revenues almost cover costs. Interim net revenues increased from $5.3m to $7.4m, while pre-tax profit trebled to $1.8m, helped by a full six month contribution from ICM. A full year pre-tax profit of $4.1m is forecast. Operating expenses should rise much slower than revenues and cash generation should be strong. A $5.1m cash payment will be made in the second half in order to cover those legacy costs. Even after that, the company should have net cash of more than $5m at the end of 2019. Longer-term, Minds + Machines could become a dividend payer.

Pelatro (PTRO) is dependent on fourth quarter licence sales to achieve forecasts following the 14% increase in interim revenues to $2.7m. That means that second half revenues of the telecoms marketing services and technology provider need to be $7.8m to achieve the 2019 target. There are some large potential sales in the pipeline, but delays of a few weeks could mean that they drop into 2020. Repeat revenues more than doubled in the first half because more of the business won has been in the form of revenue gain share contracts that take time to build up and produce revenues over a longer period than a one-off licence, which is recognised as revenue straight away.

Maestrano (MNO) has conditionally agreed to acquire Airsight Holdings, which offers engineering surveying services using Light Detection and Ranging (LiDAR) technology. Airsight had revenues of A$1.04m in the year to June 2019 and it is loss making because of development spending. Maestrano will issue 73.4 million shares to pay for the acquisition. There could be further payments depending on revenues. The Maestrano chairman is a shareholder in Airsight.

Escape Hunt (ESC) increased revenues from £800,000 to £2.2m in the first half of 2019 but it remains loss-making. Franchise revenues were flat, and all the growth came from the operated sites. Escape Hunt has signed an agreement with Proprietors Capital Holdings for the roll-out of franchise sites in North America.

Mattress supplier eve Sleep (EVE) reduced its loss but cash is still flowing out of the business. Net cash was £12.5m at the end of June 2019 and it is expected to be £8m by the end of the year.

MAIN MARKET

S and U (SUS) is adding new motor finance business even though loan standards have been tightened. Motor finance business Advantage Finance is on course to achieve its 20th year of profit growth. Bridging loans provider Aspen made a profit of £502,000 in the first half. Interim pre-tax profit rose by 3% to £17.1m and the dividend was increased by 6% to 34p a share.

Suit hire and retail business Moss Bros (MOSB) broke even, before the IFRS16 accounting changes for leases, in the six months to July 2019, which was slightly better than expected. A full year loss is still expected because despite like-for-like retail sales growth, hire revenues are declining and the IFRS16 changes will knock £2.5m off pre-tax profit. There was cash of £18.2m at the end of July 2019.

finnCap has reduced its 2019-20 forecasts for InnovaDerma (IDP) following its figures for the year June 2019. The beauty and health products supplier increased revenues by one-fifth to £12.9m and pre-tax profit more than doubled to £1.4m. This year’s pre-tax profit is expected to be £2m, down from £2.3m previously, because higher costs relating to marketing more than offset improved sales expectations. To put this in perspective, the 2019-20 pre-tax profit forecast back in August 2018 was £2.6m. InnovaDerma needs to start meeting forecasts rather than having them downgraded on a regular basis.

Tex Holdings (TXH) has appointed Price Bailey LLP. Trading appears to be picking up in the plastics and engineering businesses. There is a record order book of £12m.

Andrew Hore

Cadence Minerals #KDNC – Interim Results for the six months ended 30 June 2019

Cadence Minerals plc announces interim Results for the six months ended 30 June 2019

 

 

HIGHLIGHTS

·    Cadence entered into an investment agreement to acquire up to 27% of the Amapá iron ore mine, beneficiation plant, railway and private port.

·      Before its sale in 2012 Anglo American valued  (impaired) its 70% stake in the Amapá iron ore mine at  US $462m ( 100% US $600m).

·      During its operation, the mine generated an annual operating profit of up to U$171 million (100%).

·      The total historic mineral resource contains an estimated 348 million tonnes (“Mt”) of ore @ 38.9% iron content (“Fe”).

·    Macarthur Minerals (Cadence equity ownership approx. 9%) refocused efforts on their iron ore assets and secured a binding Life-Of-Mine Off-Take Agreement with Glencore International A.G

·    European Metals (Cadence equity ownership approx. 19%) published a pre-feasibility study for the production of lithium hydroxide, increasing the net present value of the project 105% to US$1.1 BN.

INVESTMENT REVIEW

Amapá, Iron Ore Mine (“Amapá”)

In June this year Cadence Minerals entered into a binding investment agreement (“the  Agreement”) with Indo Sino Pte. Ltd. (“Indo Sino”) to invest in and acquire up to a 27% interest in the former Anglo American plc (“Anglo American”) and Cliffs Natural Resources (“Cliffs”) Amapá iron ore mine, beneficiation plant, railway and private port (“Amapá Project”) owned by DEV Mineração S.A. (“Amapá”).

The Amapá Project is a large-scale iron open pit ore mine with associated rail, port and beneficiation facilities and commenced operations in December 2007. Production increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012 respectively.

A summary of the asset is as below:

·      Before its sale in 2012 Anglo American valued its 70% stake in the Amapá Project at US$866 million (100% 1.2 billion) and after impairment valued it at  US $462m in its 2012 Annual Report ( 100% US $600m)

·      During its operation, the mine generated an annual operating profit of up to U$171 million (100%)

·      The total historic mineral resource contains an estimated 348 million tonnes (“Mt”) of ore @ 38.9% iron content (“Fe”)

·      The ore is beneficiated to 65% Fe Pellet Feed and 62% Fe Spiral Concentrate

·      Based on available historic mine plans and an independent consultant review it is expected that at full production the Amapá Project has a mine life of 14 years and at full capacity is targeting to produce up to 5.3 Mt of Iron Ore per annum

·      Subject key preconditions being met, the planned shipment of a 1.39 million tonne stockpile is scheduled to commence in December 2019. It is estimated that these stockpiles have a net realisable value of approximately US$ 60 million, which will be reinvested in the restart of the Amapá Project

·      Potential for the mine and existing infrastructure to be brought to market swiftly with mining and processing anticipated to restart in 2021 subject to the grant of the necessary permits, regulatory consents and project financing.

To acquire its 27% interest, Cadence will invest US$ 6 million over two stages. The first stage is for 20% of the JV Co the consideration for which is US$2.5 million. The second stage of investment is for a further 7% of JV Co for a consideration of US$3.5 million. Should Indo Sino seek additional investors or an investment in the JV Co the agreement also provides Cadence with a first right of refusal to increase its stake to 49% in the JV Co.

Our investment is conditional on several key preconditions the first is the approval of the judicial restructuring plan (“JRP”), which was completed at the end of August. Once the remaining pre-conditions relating to the reinstatement of a concession on the railway licenses and bank creditor arrangements have been met, the US$2.5 million investment placed in the judicial trust account will be released, and Cadence will own 20% of the Amapá iron ore project. This will enable the start of the shipping of the iron stockpile.

The approval of the JRP and the fulfilment of the preconditions outlined above will result in Cadence’s and IndoSino’s joint venture company Pedra Branca Alliance Pte Ltd. (“PBA”) owning 99.9% of DEV Mineração S.A. (“Amapá”). DEV Mineração S.A. is the owner of the Amapá iron project.

Cadence’s next stage of investment will be a further investment of US$3.5 million on the grant of all operational and environmental licenses for the Amapá Project, at which point Cadence will own 27%.

As part of the JRP Amapá submitted an outline of an operational and financial plan that Amapá intends to implement to bring the project back into production, which included the following

·      The total initial estimate of capital investment of approximately US$168 million, of which it is estimated US$61 million will be spent on port rehabilitation and US$47 million to be spent on plant recommissioning.

·      Rehabilitation to be completed by the end of 2021 with new production in 2022. Full production by 2024 of 5.3 million tonnes (“Mt”) of iron ore per annum.

·      At full production and using US$61 per tonne of 62% Fe Amapá is forecast to have:

·      an average net revenue after shipping of US$266 million per annum,

·      and an average EBITDA of US$136 million per annum.

European Metals Holdings Limited (“EMH”)

Cadence has been investing in European Metals since June 2015. As of the date of this document, Cadence holds approximately 19% in the Cinovec deposit in the Czech Republic through a direct holding in the share capital of European Metals that owns 100 per cent of the exploration rights to the Cinovec lithium/tin deposit. The Cinovec lithium and tin deposit is located in the Krusne Hory mountain range. The deposit that straddles the border between Germany and the Czech Republic and in Germany, it is known as the Zinnwald deposit (50% owned by Bacanora Lithium Plc ). The district has an extensive mining history, with various metals having been extracted since the 14th Century.

During the period EMH made significant progress. Drilling continued at the site with five of the eight-hole programme completed; this drilling programme was carried out to define the first two years of mining within the Cinovec-south area. The results of this programme have either been in line with or exceeded, EMH’s expectations particularly with regard to the tin intercepts.

In addition to the drilling results, EMH published a pre-feasibility study on producing battery-grade lithium hydroxide for as an alternative to battery-grade lithium carbonate. The result significantly enhanced the forecast economics of the Cinovec Project:

Highlights of the study are: (all $ figures in this release are US Dollars and increases refer to the 2017 PFS Lithium Carbonate study):

·           Net estimated overall cost of production post-credits: $3,435 / tonne LiOH.H2O

·           Project Net Present Value (“NPV”) increases 105% to: $1.108B (post-tax, 8%)

·           Internal Rate of Return (“IRR”) was increased 37% to 28.8% (post-tax)

·           Total Capital Cost: $482.6M

·           Annual production of Battery Grade Lithium Hydroxide: 25,267 tonnes

·           Studies are based on only 9.3% of reported Indicated Mineral Resource and a mine life of 21 years processing an average of 1.68 Mtpa ore

·           The process used to produce lithium hydroxide allows for the staging of lithium carbonate and then lithium hydroxide production to minimise capital and startup risk and enables the production of either battery-grade lithium hydroxide or carbonate as markets demand

After the period end, EMH entered into an agreement with CEZ Group(“CEZ”), one of Central and Eastern Europe’s largest power utilities, to conditionally provide a EUR 2 million finance facility by way of a convertible loan. CEZ is currently conducting due diligence on the Company and Project. The successful outcome of the due diligence process could see CEZ become European Metals’ largest shareholder and co-development partner for the Cinovec Lithium/Tin Project through conversion of the convertible note and subsequent additional investment.

Macarthur Minerals (“Macarthur”)

Cadence holds approximately 9% of the equity in Macarthur. Macarthur has three iron ore projects in the Yilgarn region of Western Australia. The Company has also established multiple project areas in the Pilbara, Western Australia for conglomerate gold, hard rock greenstone gold and hard rock lithium. In addition, Macarthur Minerals has significant lithium brine interests in the Railroad Valley, Nevada, USA.

During the period Macarthur focused its efforts on its Iron Assets in Western Australia.

The main highlights for Macarthur over the period were:

·       Opened an up to US$6 million institutional convertible note offer to fund the production of a Bankable Feasibility Study on Macarthur iron ore projects

·       Binding Life-Of-Mine Off-Take Agreement with Glencore International A.G for the Lake Giles Iron Ore Project for approximately 4 mtpa for the first 10 years on project start up

·       Macarthur entered into exclusive negotiation agreement with Aurizon for rail haulage services for the Lake Giles Iron Ore Project

·       Infill drilling program planned for the Moonshine magnetite deposit

·       Engineering firm Engenium commissioned to revise NI 43-101 compliant technical report and refine operating and capital costs of the hematite and magnetite projects

·       Applications have been made for three additional prospective iron ore tenements. These were properties released by Cliffs Natural Resources and are adjacent to the iron ore operations of Mt Jackson and Deception Mines

Bacanora Lithium Plc (“Bacanora”)

At the period end Cadence owned less than one per cent of Bacanora’s equity and a 30% stake in the Mexalit S.A. de CV (“Mexalit”) joint venture which forms part of the Sonora Lithium Project in Northern Mexico.

Bacanora has two lithium development assets, the Sonora Lithium Project and the Zinnwald Lithium Project. Bacanora has a 50% interest in, and joint operational control, of the Zinnwald Lithium Project. Zinnwald represents a strategic asset located near a thriving market for lithium and energy products.

Bacanora’s principal asset is the Sonora Lithium Project in northern Mexico. The asset has Measured plus Indicated Mineral Resource estimate of over 5 million tonnes (‘Mt’) (comprising 1.9 Mt of Measured Resources and 3.1Mt of Indicated Resources) of lithium carbonate equivalent (‘LCE’) and an additional Inferred Mineral Resource of 3.7 Mt of LCE, Sonora is regarded as one of the world’s larger known clay lithium deposits.

Bacanora continued to progress the strategic investment by Ganfeng Lithium Co., Ltd. (“Ganfeng”) during the period and signed the investment agreement at the end of June 2019, the key terms of which were:

·           Cornerstone strategic investment of 29.99% in Bacanora for £14,400,091 by Ganfeng

·           Project level investment of 22.5% in Sonora Lithium Ltd , the holding company for the Sonora Lithium Project, for £7,563,649

·           Additional long-term offtake at a market-based price per tonne

·           Gangfeng will complete a review within six months of the EPC engineering design and capital costs of Sonora Lithium Project with a view to reducing costs and accelerating the timetable

·           Gangfeng will provide a plant and process commissioning team to assist Bacanora in delivering first production in 2021

At the time of publishing Ganfeng was awaiting final approval from Chinese authorities to make its investment.

Yangibana Rare Earth Project

Cadence owns a 30% free carried interest in the Yangibana North, Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North rare earth projects in Western Australia. These projects form part of the larger Yangibana Rare Earth Project (“the Project”). The free carry is up to the commencement of the feasibility study.

A considerable amount of work over this period has been to define the geological resource and reserves, optimise the process flow, carry out detailed design and engineering work required for the setting up of a process plant, negotiations on equipment supply and no less crucial securing project finance. An early works permit was granted which allowed the initiation of infrastructure work and bring on-site a 340 rooms accommodation camp ready for occupation when mine construction commences.

On geology, there was a 34% increase in probable ore reserves to 10.35 million tonnes at 1.22% TREO including 0.43%Nd2O3+Pr6O11, supporting an initial 11 years operational life for the project based on the JORC certified resource of 21.7 million tonnes.

The current mine plan and production targets set out by the operator incorporates 10.35 million tonnes of Probable Ore Reserves, of which 1.96 million tonnes is part our joint venture asset, Yangibana North, which according to the operator’s production targets are scheduled to be mined from year 8 to year 14. These production targets include indicated mineral resources, hence the longer mine life.

Lithium Assets in Australia

In March this year Cadence announced that it has agreed to acquire three highly prospective assets in Australia that are in regions with proven high-grade lithium mineralisation. The mechanism to facilitate this acquisition was via varying binding investment agreements in place with Lithium Technologies Pty Ltd (“LT”) and Lithium Supplies Pty Ltd (“LS”) that Cadence entered on 11 December 2017 to acquire up to 100% of six prospective hard rock lithium assets in Argentina.

Highlights of the assets include:

·     The acquisition covers three projects – Picasso (Western Australia – WA), Litchfield (Northern Territories – NT) and Alcoota (NT) – that are located  in regions with proven lithium mineralisation and supportive mining infrastructure

·     The Picasso Project (license granted) is near Alliance Mineral Assets’ (ASX: A40; SGX: 40F; “AMA”) high-profile Bald Hill Mine in WA (note: AMA recently completed a 50:50 A$400m+ merger with delisted Tawawa Resources [ASX: TAW] & raised $40M to develop the  asset base)

·     Demonstrating exploration upside for Picasso, the Bald Hill Mine is producing a spodumene concentrate and has a JORC (2012) compliant mineral resource of 26.5Mt @ 0.96% Li2O; probable ore reserves at 11.3Mt @ 1.01% Li2O

Preliminary exploration work was concluded in April with positive results, and Cadence increased its stake from 4% to 24%. Early exploration work will begin soon to test and sample targets that have been identified during the preliminary exploration.

Other Investments

Cadence also retains equity positions in Sagon Resources Ltd (formerly Clancy Minerals Ltd) and Auroch Minerals Ltd. The latter being involved in base metal exploration in Australia, in particular, the Saints Nickel Project in Western Australia. Sagon Resources Ltd is currently exploring the Cummins Range Rare Earths Project.

FINANCIAL REVIEW

During the period, the Group made a loss before taxation of £0.28 million (30 June 2017: loss of £4.61 million). This was primarily due to an increase in the value on our portfolio, which offset administrative, financing and share of associated losses totalling £0.96 million.

There was a weighted basic loss per share of 0.003p (30 June 2017: loss per share 0.059p)  Foreign currency translation differences marginally decreased comprehensive loss for the period to £0.24 million (30 June 2017: total comprehensive loss of £4.66 million).

Administrative expenses decreased by £0.11 million compared to the same period last year; this decrease was driven by cost-cutting measures across the board.

The total assets of the group increased from £18.33 million at 31 December 2017 to £19.39 million. Of this amount, £2.33 million represent the market value of our available for sale investments at the period end. The reduction in the total assets is as a result of the decrease in the value of Bacanora equity, which was the primary driver for the reduction of available for sale asset value.

It is important to note that this does not include our investment in EMH. Our investment in EMH is classified as an investment in an associate and held at a value of £12.2 million. EMH is classified as such because we hold approximately 19% and Kiran Morzaria, the Chief Executive Officer of Cadence is also a Non-Executive Director of EMH.

Our borrowings of £3.71 million as at the 31 December 2017 reduced to £2.06 million by the end of the period as we paid back our convertible loans.

During the period, our net cash outflow from operating activities was £0.52 million compared to £0.45 million during the same period last year. We invested £0.27 million in Amapá, as part of our due diligence and JRP costs and our financing costs were some £0.19 million. We disposed of £1.42 of our available for sale investments which predominantly was our Bacanora equity. These sales were used to pay back some £1.59 million of our convertible loan during the period. We raised some £1.30 million of equity during the period which after netting of the aforementioned costs and revenue from the sale of our equity stake yielded resulted in a cash balance at the end of the period of £0.54 million

 

For further information, please contact

Cadence Minerals plc

+44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

+44 (0) 207 220 1666

James Joyce

James Sinclair-Ford

Novum Securities Limited (Joint Broker)

+44 (0) 207 399 9400

Jon Belliss

 

 

CADENCE MINERALS PLC

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2019

 

Notes

Unaudited Period ended 30 June 2019

Unaudited Period ended 30 June 2018

Audited Year ended  31 December 2018

£’000

£’000

£’000

Income

Unrealised profit/(loss) on assets held for sale

1,118

(3,730)

(7,440)

Realised (loss)/profit on assets held for sale

(264)

105

(1,967)

Other income

4

48

140

858

(3,577)

(9,267)

Share based payments

(3)

(7)

Other administrative expenses

(672)

(785)

(1,559)

Total administrative expenses

(672)

(788)

(1,566)

Operating profit/(loss)

186

(4,365)

(10,833)

Share of associates losses

(274)

(182)

(555)

Finance cost

(197)

(59)

(377)

(Loss)/profit before taxation

(285)

(4,606)

(11,765)

 

 

 

Taxation

(Loss)/profit attributable to the equity holders of the Company

(285)

(4,606)

(11,765)

Other comprehensive income/(expenditure)

Foreign currency translation differences

47

(53)

(150)

Other comprehensive income/(expenditure) for the period net of tax

47

(53)

(150)

Total comprehensive expenditure for the period

(238)

(4,659)

(11,915)

Loss per share

Basic  (pence per share)

3

(0.003)

(0.059)

(0.150)

Diluted  (pence per share)

3

(0.003)

(0.051)

(0.145)

CADENCE MINERALS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2019

 

Share capital

Share premium account

Share-based payment reserve

Hedging, Loan & Exchange reserves

Retained earnings

Total equity

£’000

£’000

£’000

£’000

£’000

£’000

Balance at 1 January 2018

1,202

27,552

3,178

337

(5,545)

26,724

Share based payments

3

3

Transfer on lapse of warrants

(132)

132

Transactions with owners

              –  

                –  

(129)

                –  

132

3

Foreign exchange

 –

 –

(53)

 –

(53)

Profit for the period

(4,606)

(4,606)

Total comprehensive loss for the period

              –  

                –  

              –  

(53)

(4,606)

(4,659)

Balance at 30 June 2018 (unaudited)

1,202

27,552

3,049

284

(10,019)

22,068

Share based payments

4

4

Transfer on lapse of warrants

(1,661)

1,661

On settlement of loan notes

(412)

(412)

Transactions with owners

              –  

                –  

(1,657)

(412)

       1,661

(408)

Foreign exchange

(97)

(97)

Loss for the period

(7,159)

(7,159)

Total comprehensive loss for the period

              –  

                –  

              –  

(97)

(7,159)

(7,256)

Balance at 31 December 2018

1,202

27,552

1,392

(225)

(15,517)

14,404

Issue of share capital

232

2,668

2,900

Costs of share issue

(105)

(105)

Transactions with owners

          232

         2,563

                –  

              –  

       2,795

Foreign exchange

 –

 –

47

 –

47

Loss for the period

(285)

(285)

Total comprehensive loss for the period

              –  

                –  

              –  

47

(285)

(238)

Balance at 30 June 2019 (unaudited)

1,434

30,115

1,392

(178)

(15,802)

16,961

 

 

 

 

 

 

 

 

 

 

 

CADENCE MINERALS PLC

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2019

 

Unaudited

Unaudited

Audited

 30 June 2019

 30 June 2018

 31 December 2018

Assets

Notes

£’000

£’000

£’000

Non-current

Intangible assets

2,438

1,875

2,172

Investment in associate

12,170

12,918

12,483

14,608

14,793

14,655

Current assets

Trade and other receivables

1,919

461

315

Assets held for sale

2,330

9,946

2,895

Cash and cash equivalents

536

216

468

Total current assets

4,785

10,623

3,678

Total assets

19,393

25,416

18,333

EQUITY AND LIABILITIES

Current liabilities

Trade and other payables

372

290

223

Borrowings

2,060

3,058

3,706

Total current liabilities and total liabilities

2,432

3,348

3,929

Equity

Share capital

4

1,434

1,202

1,202

Share premium

30,115

27,552

27,552

Share based payment reserve

1,392

3,049

1,392

Hedging & Exchange reserve

(178)

284

(225)

Retained earnings

(15,802)

(10,019)

(15,517)

Total equity and liabilities

to owners of the company

16,961

22,068

14,404

Total equity and liabilities

19,393

25,416

18,333

CADENCE MINERALS PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD 30 JUNE 2019

 

Unaudited Period ended

Unaudited Period ended

Audited Year ended

30 June 2019

30 June 2018

 31 December 2018

£’000

£’000

£’000

Cash flows from operating activities

Operating profit/(loss)

186

(4,365)

(10,833)

Net realised/unrealised profit on assets held for sale

(854)

3,625

9,407

Equity settled share-based payments

3

7

Decrease/(increase) in trade and other receivables

(4)

261

407

Increase/(decrease) in trade and other payables

149

28

(39)

Net cash outflow from operating activities

(523)

(448)

(1,051)

Taxation

Cash flows from investing activities

Payments for investments in assets held for sale

(476)

(523)

Receipts on sale of assets held for sale

1,419

438

1,755

Receipts from sale of/(payments for) investments in associates

39

(50)

Investment in exploration costs

(266)

(100)

(325)

Net cash outflow from investing activities

1,192

(138)

857

Cash flows from financing activities

Proceeds from issue of share capital

1,300

Share issue costs

(105)

Net (loan repayments)/borrowings

(1,599)

(1,176)

(998)

Finance cost

(197)

(59)

(377)

Net cash inflow from financing activities

(601)

(1,235)

(1,375)

Net increase/(decrease) in cash and cash equivalents

68

(1,821)

(1,569)

Cash and cash equivalents at beginning of period

468

2,037

2,037

Cash and cash equivalents at end of period

536

216

468

 

NOTES TO THE INTERIM REPORT

FOR THE PERIOD ENDED 30 JUNE 2019

 

1 BASIS OF PREPARATION

 

The interim financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention.  The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The Group’s statutory financial statements for the year ended 31 December 2018 have been delivered to the Registrar of Companies. The auditor’s report on those financial statements was unqualified.

 

The principal accounting policies of the Group are consistent with those detailed in the 31 December 2018 financial statements, which are prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the European Union.  IFRS16 – Leases has been adopted, but as the Group has no leases exceeding 12 months, this has had no impact.

 

GOING CONCERN

 

The Directors have prepared cash flow forecasts for the period ending 30 September 2019. The forecasts demonstrate that the Group has sufficient funds to allow it to continue in business for a period of at least twelve months from the date of approval of these financial statements. Accordingly, the accounts have been prepared on a going concern basis.

 

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

 

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results

 

2 SEGMENTAL REPORTING

 

An operating segment is a distinguishable component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions about the allocation of resources and assessment of performance and about which discrete financial information is available.

 

The chief operating decision maker reviews financial information for and makes decisions about the Group’s performance as a whole. The Group has not actively traded during the period.

 

Subject to further acquisitions the Group expects to further review its segmental information during the forthcoming financial year.

 

3 PROFIT PER SHARE 

 

The calculation of the loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

 

Unaudited

Unaudited

Audited

six months ended

six months ended

year ended

30 June 2019

30 June 2018

31 December 2018

£’000

£’000

£’000

(Loss)/profit on ordinary activities after tax (£’000)

(285)

(4,606)

(11,765)

Weighted average number of shares for calculating basic loss/profit per share

  8,335,217,332

  7,851,440,338

  7,851,440,338

Share options and warrants exercisable

     280,000,000

  1,259,575,345

     280,000,000

Weighted average number of shares for calculating diluted loss/profit per share

  8,615,217,332

  9,111,015,683

  8,131,440,338

Basic loss per share (pence)

(0.003)

(0.059)

(0.150)

Diluted loss per share (pence)

(0.003)

(0.051)

(0.145)

 

4 SHARE CAPITAL

 

Unaudited

Unaudited

Unaudited

30 June 2019

30 June 2018

30 June 2018

£’000

£’000

£’000

Allotted, issued and fully paid

173,619,050 deferred shares of 0.24p (30 June 2018 and 31 December 2018: 173,619,050)

417

417

417

10,172,652,446 ordinary shares of 0.01p (30 June 2018 and 31 December 2018: 7,851,440,338)

                  1,017

                      785

                      785

                  1,434

                  1,202

                  1,202

 

Cadence Minerals #KDNC – Result of AGM and Share Consolidation

Cadence announces that at the Annual General Meeting of the Company held today, all resolutions put to shareholders were duly passed.

Consequently, the share capital consolidation on a 1 for 100 basis will come into effect at 8am on 23rd September 2019 (“Admission”). At that time, upon Admission, the Company will have 105,461,968 Ordinary Shares in issue. There are no shares held in treasury. The total voting rights in the Company upon Admission is therefore 105,461,968 and Shareholders may use this figure as the denominator by which they are required to notify their interest in, or change to their interest in, the Company under the Disclosure Guidance and Transparency Rules.

– Ends –

For further information:

Cadence Minerals plc

                                                   +44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

                                +44 (0) 207 220 1666

James Joyce

James Sinclair-Ford

Novum Securities Limited (Joint Broker)

                                +44 (0) 207 399 9400

Jon Belliss

 

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

 

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.

Cadence Minerals #KDNC – Macarthur Minerals (TSX-V: MMS) Progress Update on Infill Resource Drilling at Its Lake Giles Iron Project in Western Australia

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note an update today from Macarthur Minerals (TSX-V: MMS) (“Macarthur”) on the progress of its infill drilling program of the Moonshine Magnetite deposit at its Lake Giles Iron Project in Western Australia.

Moonshine Magnetite Infill Drilling Program

The diamond and reverse circulation (RC) drilling program commenced in August in the central region of the Moonshine deposit.

The majority of the Moonshine and Moonshine North deposits are defined by drill hole spacing of 200m X 200m and classified as an Inferred Mineral Resource of approximately 710 mt of at 30.2% Fe.

The infill drilling program has been designed at closer drill hole spacing to upgrade the resource classification for some of the Moonshine deposit. The drilling program includes a planned total of 21 RC holes and 9 diamond holes for total drilling of 5,190 m.

The drilling program has been designed with the goal of upgrading the resource classification to include Indicated and Measured Mineral Resources. The updated mineral resource will underpin the Bankable Feasibility Study to be completed for the Lake Giles Iron Project.

The first batch of drill samples are being prepared for dispatch to the laboratory.

Drilling Highlights:

  • Diamond drill hole LGDD_066 has intersected the Banded Iron Formation (“BIF”) unit from a down hole depth of 12.6 m and includes a section of 81.1 metres from 49.9m with strong visual magnetite content.
  • Diamond drill hole LGDD_067 has intersected BIF from a down hole depth pf 68.5m with strong magnetite content through to current depth at 136m. Drilling is continuing to a planned depth of 240m.
  • A third diamond hole has been pre-collared to 60m with the RC rig with diamond drilling scheduled to commence today.
  • Reverse Circulation Drilling of hole LGRC_2146 has successfully intersected the western footwall contact of the BIF. Hole LGRC_2147 has intersected strong magnetite BIF from the eastern contact at 89m through to 203m and lower grade magnetite from 203m through to the western footwall contact at 274m downhole depth.

Cadence Minerals Holding in Macarthur

Cadence holds approximately 9.8% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=4544850112107715&qm_symbol=MMS 

This news release is not for distribution to United States Services or for Dissemination in the United States.

– Ends –

 

For further information:

Cadence Minerals plc                                                    +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)                                 +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
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 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.

 

Cadence Minerals #KDNC – Auroch Minerals (ASX: AOU) – Drilling Programme Underway at Saints Nickel Project

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update today from Auroch Minerals Limited (ASX: AOU) (“Auroch”) that its maiden drilling programme has commenced at the recently-acquired Saints Nickel Project (Saints), located approximately 65km northwest of Kalgoorlie and 7km east of the Goldfields Highway. A McCulloch DR800 diamond drill rig from Topdrive Drillers Australia (Topdrive) arrived last week and commenced drilling the first hole on Sunday.

Highlights:

  • 3,000m diamond drilling programme has commenced at the Saints Nickel Project.
  • Drilling will target untested near-resource electromagnetic plates and possible down-plunge extensions to existing high-grade nickel sulphide mineralization.
  • Drilling will also focus on confirming historical drilling data and high-grade nickel intersections that comprise the current Saints JORC (2012) resource of 1.05Mt @ 2.00% Ni, 0.20% Cu & 0.06% Co1.
  • Down-hole electromagnetic surveys (DHEM) will be completed on all drill-holes aiming to generate further near-resource targets for the next phase of drilling.

Auroch Managing Director Aidan Platel commented: “Topdrive and our exploration team are to be commended on the speed and professionalism with whichthe preparation for the drilling programme was completed. We have commenced the programme to testa compelling EM target down-plunge from high-grade nickel sulphide mineralisation on the WesternContact. Our programme will test similar high-priority targets at the St Patricks and St Andrews prospects,as well as drill deeper and along strike from previous drilling in order to collect valuable DHEM data thatwill be used to generate additional targets for a much larger drilling programme planned for 2020. Witha great market outlook for tier 1 nickel products, this is a very exciting time for the Company, and we lookforward to updating the market with results as they are received.”

The full release can be found at: https://www.investi.com.au/api/announcements/aou/d9e475e6-b01.pdf

Cadence Minerals Holding in Auroch

Cadence currently owns approximately 4.3% of the equity in Auroch Minerals, which is an exploration company targeting principally zinc, cobalt and lithium.

– Ends –

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
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-LookingStatements:

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.

Alan Green discusses Cadence Minerals #KDNC, Tiziana Life #TILS, JD Sports #JD & Itaconix #ITX on the Vox Markets podcast

Alan Green discusses Cadence Minerals #KDNC Amapa project, Tiziana Life Sciences (AIM: #TILS, Nasdaq: #TLSA), JD Sports #JD and Itaconix #ITX on the Vox Markets podcast. The interview is 14 minutes 28 seconds in.

Andrew Hore Quoted Micro 2 September 2019

NEX EXCHANGE

SG Recruitment Ltd (SGRL) generated revenues of £777,000 in the 15 months to March 2019. The nursing staff provider lost £2.63m. Since the year end, more contracts have been signed with NHS hospitals, as well as with a hospital in the UAE. The staff offered to hospitals have all obtained qualifications in English and 76% end up being employed. Most of the previous debt has been converted into shares, so net debt was £91,000 at the end of March 2019.

Lombard Capital (LCAP) reported an increase in net liabilities from £234,000 to £537,000 at the end of March 2019. There were £750,000 worth of bonds issued during the period.

PCG Entertainment (PCGE) hopes that the acquisition of Vox Markets and Align Research should be closed in early October. Previous operations have been provided for in full and have been sold. There was £14,000 in the bank at the end of March 2019.

A new investor to Walls and Futures REIT (WAFR) has subscribed £100,000 for shares at 70p each, which is a one-third premium to the market price at the time. Westerby Trustee Services Ltd owns 3.8% of the company on behalf of Westerby Private Pension (R Prest).

Cadence Minerals (KDNC) says that the judicial restructuring plan for the Amapa iron ore project has been approved by the Sao Paulo commercial court. This will enable Cadence to acquire a 20% stake in Amapa. A further $3.5m investment will take the stake to 27%. Cadence plans to consolidate 100 existing shares into one new share. Shareholders will be asked to approve the proposal at the AGM on 20 September.

Paul Tuson is stepping down as finance director of Rutherford Health (RUTH) and the reappointment resolution was withdrawn from the AGM agenda.

Sativa Investments (SATI) has opened its third Goodbody CBD Wellness store in Bristol, following store openings in Bath and Cirencester. It is seeking franchisees to roll-out further stores around the country.

Panther Metals (PALM) chief executive Darren Hazelwood has acquired 18.87 million shares at 0.3p each. That takes his stake to 10.3%.

First Sentinel (FSEN) has raised £59,000 at 14p a share via a placing with D Beta One EQ Ltd.

AIM  

President Energy (PPC) insists that it will continue to be profitable even though the Argentinian authorities are attempting to fix the price that producers can sell oil and the dollar exchange rate used for the price for a 90-day period. President has decided to delay its well drilling programme until the first quarter of 2020 and the focus will be gas wells. Gas sales from four wells in Estancia Vieja and Las Bases will commence production by the end of September. A new gas pipeline should be completed by the end of the year. finnCap has withdrawn its forecasts.  

Order books and production volumes are ahead of last year at gift wrap and greetings products supplier IG Design (IGR) thanks to a combination of organic growth and last year’s US acquisition. IG is on course to increase pre-tax profit from £30.3m to £36m.

Online musical instruments retailer Gear4Music (G4M) says that it has taken actions that are already helping to improve gross margin.

Cambridge Cognition (COG) says sales are lower than expected. The digital neuroscience services provider says that full year revenues will fall from £6.13m to around £5.5m. The loss will be around £2.8m. First half revenues were £2.1m and the loss was £1.74m. There is a strong order book, so this augurs well for next year.

Adamas Finance Asia Ltd (ADAM) has funded the second tranche of the investment in Infinity Capital Group. The $2m is being funded equally by Adamas and a Hong Kong family office.  

MAIN MARKET 

Blockchain Worldwide (BLOC) intends to move to AIM if its acquisition of media-focused artificial intelligence and machine learning company Entertainment AI goes ahead.

At a general meeting, shareholders in Tex Holdings (TXH) approved the 2018 report and accounts and directors’ remuneration report, but they did not approve the reappointment of Scrutton Bland as auditors.

Argo Blockchain (ARB) is reaping the benefits of its investment in crypto mining equipment. The cost of 1,000 machines has already been recouped and Argo is on course to recoup the cost of a further 2,267 machines.

Ross Group (RGP) did not generate any revenues in the six months to June 2019 and the loss was £3.15m. Ross acquired start-up operations during the period. They will supply Chitin.

Asian consumer businesses investor Symphony International Holdings (SIHL) increased its NAV by 14% to $560.4m in the six months to June 2019.

George Bennett has become chief executive of Rainbow Rare Earths (RBW) and Martin Eales has left the board. In the year to June 2019, Rainbow sold 850 tonnes of concentrate from the Gakara project, although bad weather hampered production in the fourth quarter. Sales prices have declined.

China-focused healthcare investment company Cathay International (CTI) reported a decrease in revenues from $49.2m to $38.3m. There was a $7.9m gain on the sale of shares in Zhejiang Starry Pharmaceutical, but that was not enough to cover the operating loss and interest costs.

OTHER MARKETS

Britdaq-quoted Staminier Ltd has secured a three-year option over 13 acres of land near to the south terminal of Gatwick Airport and it wants to build a car park with 2,200 spaces. In July, Staminier acquired a majority stake in eco-friendly housebuilder Eco-Space 41 Ltd. There is a four-year option to acquire the other 49% for £750,000. The strategy is to acquire businesses at a discount to their intrinsic value. There are plans to move to a more liquid stockmarket.

Asset Match will provide a trading facility for shares of former AIM company Albert Technologies Ltd. The first auction will be during September.

US Oil and Gas (USOP) has raised $382,000 at 31p a share. This follows a fundraising in July of $577,000 at 30p a share. The cash will be spent on exploration.

Andrew Hore 

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