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Cadence Minerals #KDNC – Bacanora Lithium #BCN announces NI-43-101 lithium resource estimate at Zinnwald Project, Germany.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement today by Bacanora Lithium (AIM:BCN) of NI 43-101 compliant Measured + Indicated resources of 124,974 tonnes of contained lithium (‘Li’) at its 50% owned Zinnwald lithium project (‘Zinnwald’ or ‘the Project’) in southern Saxony, Germany, representing a 30% increase from the previous PERC resource estimate of 96,200 tonnes.  The total resource estimate for the Project (Measure + Indicated + Inferred) is 142,240 tonnes of contained Li. The mineral resource estimate forms part of the Feasibility Study (‘FS’) for a high value lithium product operation at Zinnwald that will supply the fast-growing European battery and automotive sectors.  The FS remains on course to be completed in Q2 2019.

Highlights:

  • The Bacanora Zinnwald project is located in at Zinnwald SE Germany, some 35 km from Dresden and adjacent to the border of the Czech Republic and within 5 km of the town of Altenberg and 50 km of the town of Freiberg. 
  • The Project is in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten and lithium at different times over the past 300 years.
  • The strategic location of the Project allows immediate access to the German automotive and downstream lithium chemical industries.
  • This new NI 43-101 mineral resource estimate upgrades the PERC compliant report produced in 2014, and is based on 76 surface holes plus 12 underground holes completed in 2017.
  • The upgraded resource is part of an ongoing FS at Zinnwald.  To date, concentrator and roasting testwork and resource definition workstreams have been completed. The remaining FS workstreams, including mine design, hydrometallurgical testwork and engineering design, are all underway and proceeding on schedule.  As a result, the FS is on course to be completed in Q2 2019.
  • The upgraded resource has been reported in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and was carried out by G.E.O.S. Ingenieurgesellschaft mbH (G.E.O.S).

Bacanora is a lithium exploration and development company. As at the 31 August 2018 Cadence held  7.5% of Bacanora’s equity and 30% of Mexalit and Megalit joint venture companies. 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.

The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13820883.html

As at the 31 August 2018 Cadence had the following key investments: 19.7% of the equity in European Metal Holdings, which, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over Cinovec; 7.5% of the equity in Bacanora Lithium Plc and 30% of Mexalit and Megalit joint venture companies. 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; 6.6% of Auroch Minerals Ltd; 4.5% of Clancy Exploration Ltd; 12.1% of Macarthur Minerals Ltd; 4% of the San Luis lithium exploration project in Argentina; 30% free carried interest in one mining lease and six exploration license in part of the the Yangibana Rare Earth Mineral deposit and a 100% interest in and exploration license on the eastern boundary of boundaries of Greenland Minerals and Energy Limited’s licences that encompass the world-class Kvanefjeld, Sørenson, Zone 3 and Steenstrupfjeld Rare Earth Element deposits.

– Ends –

For further information:

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

Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore

Giles Fitzpatrick

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. 

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

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) – Director Share Purchases

As announced in December 2017 the Directors all entered into a Defined Director Purchase Programme (“DDPP”) in which they will each purchase £1,000 of ordinary shares per month for 12 months. These shares will be purchased from the market on the first Friday of each month starting on 2nd February 2018 and ending the 4th January 2019. The market will be notified of the purchases on the next trading day via a PDMR; Directors dealing notification.

The Directors have entered into a DDPP in an open period and under this programme are therefore committed to the purchase of shares in what otherwise may be a close period. Entering into the DDPP does not preclude the directors from buying additional shares in the Company during open periods.

Details of the Director purchases are contained in the table below:

Director

Position

Number of ordinary shares acquired

 Price paid per share (pence)

Andrew Suckling

Non-Executive Chairman

400,000*

0.25*

Kiran Morzaria

Director & CEO

671,140

0.15

Donald Strang

Finance Director

700,000

0.14

Adrian Fairbourn

Non-Executive Director

666,107

0.15

*Andrew Suckling purchased his DDPP obligation through the ADR listing in the OTC market (KDNCY:OTC)  in the United States, in which 500 KDNC shares is equivalent to 1 ADR share, the purchase price was US$1.62 per ADR or approximately 0.25 pence per shares.

After these acquisitions, the total notifiable share interest in the Company for the directors is as follows

Director

Position

Total Notifiable Interests (shares)

Andrew Suckling

Non-Executive Chairman

4,490,000

Kiran Morzaria

Director & CEO

13,270,490

Donald Strang

Finance Director

10,947,011

Adrian Fairbourn

Non-Executive Director

11,391,867

 Total

40,099,368

 

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

Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore

Ingo Hofmaier

 

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

Kiran Morzaria

2

Reason for the notification

a)

Position/status

Director & CEO

b)

Initial notification/ Amendment

Initial notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Cadence Minerals PLC

b)

LEI

213800TUZWG9C2GRNO58

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary Share

 

 

GB00B067JC96

b)

Nature of the transaction

Defined Directors Share Purchase Programme

c)

Price(s) and volume(s)

Price(s)

Volume(s)

0.0015

671,140

d)

Aggregated information

–      Aggregated volume

–      Price

671,140

0.0015

e)

Date of the transaction

05/10/2018

f)

Place of the transaction

XLON, AIM

 

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

Andrew Suckling

2

Reason for the notification

a)

Position/status

Non-Executive Chairman

b)

Initial notification/ Amendment

Initial notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Cadence Minerals PLC

b)

LEI

213800TUZWG9C2GRNO58

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

 

Identification code

Level 1 ADR

 

 

DR ISIN: US12738Y1091- CUSIP: 12738Y109

b)

Nature of the transaction

Defined Directors Share Purchase Programme

c)

Price(s) and volume(s)

Price(s)

Volume(s)

0.0025

400,000

d)

Aggregated information

–      Aggregated volume

–      Price

 

400,000

0.0025

e)

Date of the transaction

05/10/2018

f)

Place of the transaction

OTC US

 

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

Donald Strang

2

Reason for the notification

a)

Position/status

Finance Director

b)

Initial notification/ Amendment

Initial notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Cadence Minerals PLC

b)

LEI

213800TUZWG9C2GRNO58

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary Share

 

 

GB00B067JC96

b)

Nature of the transaction

Defined Directors Share Purchase Programme

c)

Price(s) and volume(s)

Price(s)

Volume(s)

0.0014

700,000

d)

Aggregated information

–      Aggregated volume

–      Price

 

0.0014

700,000

e)

Date of the transaction

05/10/2018

f)

Place of the transaction

XLON, AIM

 

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

Adrian Fairbourn

2

Reason for the notification

a)

Position/status

Non-Executive Director

b)

Initial notification/ Amendment

Initial notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Cadence Minerals PLC

b)

LEI

213800TUZWG9C2GRNO58

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary Share

 

 

GB00B067JC96

b)

Nature of the transaction

Defined Directors Share Purchase Programme

c)

Price(s) and volume(s)

Price(s)

Volume(s)

0.0015

666,107

d)

Aggregated information

–      Aggregated volume

–      Price

 

666,107

0.0015

e)

Date of the transaction

05/10/2018

f)

Place of the transaction

XLON, AIM

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Stockhead – Next year will be huge for electric car launches as Europeans race to catch up – Cadence Minerals (KDNC)

Next year will mark the start of a huge EV ramp-up for the world’s biggest carmakers — and that’s expected to have a serious impact on  demand for key battery metals such as lithium, cobalt, manganese, HPA and nickel.

Euro car-makers have a lot of ground to make up on EV leaders Tesla, Nissan and Chinese manufacturers – who continue to break production and sales records every month.

Tesla sold an estimated 22,250 Model 3s in September in the US alone according to this report — the highest ever for sales of a single plug-in electric car in a month, and the first time an EV has beaten 20,000 sales a month in the US market.

French-owned PSA Group — which sells the Peugeot, Citreon, DS, Opel and Vauxhall brands —   is undergoing an self-described “electrification blitz” from next year, as it aims for 100 per cent EV core models by 2025.

This is a company that made net profit of about $2.4 billion on car sale revenues of $50 billion in the first half of 2018.

Its Peugeot and Citreon brands showed off fully EV and hybrid versions of its popular models — due for rollout next year — at the Paris Motor Show last week.

It also unveiled its beautiful, fully electric concept Peugeot e-Legend car.

In response to a change.org petition to get the e-Legend into production, Peugeot boss Jean-Phillipe Imparato says:

Germany’s Volkswagen Group estimates it will sell 3 million EVs in 2025.

Of that, its I.D. models – which starts production next year – are expected to contribute 1 million of those sales.

Audi, also part of the Volkswagen Group has started production of its e-tron EV ahead of full production in 2019; it’s expected to produce about 20,000 a year.

And the first Mercedes-Benz vehicle under the fully electric EQ brand will be launched by mid-2019 – part of a range that is expected to expand to include 10 new models by 2022.

Kiran Morzaria, CEO of Cadence Minerals #KDNC discusses the lithium market and also gives an update on one of its investments European Metals Holdings #EMH on the Vox Podcast

Kiran Morzaria, CEO of Cadence Minerals #KDNC discusses the lithium market and also gives an update on one of its investments European Metals Holdings #EMH on the Vox Podcast with Justin Waite

The Interview starts at 7 minutes 13 seconds.

Cadence Minerals (KDNC) European Metals (EMH) Cinovec Project Update – DFS Level Drilling Permits granted and Lithium Hydroxide Testwork commenced.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update published today by European Metals Holdings Limited (“European Metals”) highlighting further significant advancements made in the development of the Cinovec Lithium-Tin Project (“Cinovec”).

Highlights:

  • Permits required for the DFS resource drilling campaign have been granted, and European Metals has received permission from the relevant statutory authorities in the Czech Republic for the commencement of the planned comprehensive diamond drilling campaign.
  • A total of 13 drill holes for a total drilled length of 3,386 metres have been permitted.
  • The first 4 geotechnical drill holes at the proposed site of the mine portal have been completed. The rig is continuing with drilling a further five geotechnical holes along the planned mining decline route to allow final development ready designs to be completed for the portal and decline designs.
  • Testing of the revised lithium hydroxide product flowsheet commenced on schedule at Dorfner Anzaplan in Germany.

Cadence holds approximately 20% of the equity in European Metals, which, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over Cinovec.

The full release can be found at: http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=160721 

Cadence Minerals CEO Kiran Morzaria commented: “The commencement of the Cinovec DFS drilling programme ahead of the winter season is a big step forward for European Metals. This, along with the progress made with the lithium hydroxide flowsheet has very positive implications for Cinovec project economics and future valuations. We look forward to the results”

Cadence Holdings

As at the 31 August 2018 Cadence had the following key investments: 19.7% of the equity in European Metal Holdings, which, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over Cinovec; 7.5% of the equity in Bacanora Lithium Plc and 30% of Mexalit and Megalit joint venture companies. 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; 6.6% of Auroch Minerals Ltd; 4.5% of Clancy Exploration Ltd; 12.1% of Macarthur Minerals Ltd; 4% of the San Luis lithium exploration project in Argentina; 30% free carried interest in one mining lease and six exploration license in part of the the Yangibana Rare Earth Mineral deposit and a 100% interest in and exploration license on the eastern boundary of boundaries of Greenland Minerals and Energy Limited’s licences that encompass the world-class Kvanefjeld, Sørenson, Zone 3 and Steenstrupfjeld Rare Earth Element deposits.

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  
   
Hannam & Partners LLP (Joint Broker) +44 (0) 207 907 8500
Neil Passmore  
Giles Fitzpatrick  
   
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.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

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 – Interim Results for the six months ended 30 June 2018

Cadence Minerals plc, (AIM/NEX: KDNC; OTC: REMMY), which invests in highly prospective lithium and rare earth mineral projects, announces its interim results for the six months ended 30 June 2018.

HIGHLIGHTS

·      Fundamental Supply of Lithium Compounds remains constrained

·      Long-term battery grade lithium pricing increased during the period and remains US$15,000 per tonne

·      European Metals Holdings (“EMH”) the owner of the Cinovec project in the Czech Republic;

·      Completed test work on roast improving lithium recoveries to 95%.

·      Announced a revised pre-feasibility study which will envisage the production of lithium hydroxide which is currently priced at around US$17,000 per tonne.

·      Reconnaissance exploration was completed at San Luis lithium project which has identified some 10 thousand hectares of prospective ground of lithium bearing pegmatites.

·      Subsequent to the year-end Macarthur entered into an exclusive advisory agreement with UK based Capstan Capital Partners LLP (“Capstan”) to seek the necessary funding required to advance Macarthur’s significant iron ore projects located in Western Australia.

STRATEGIC REVIEW

By most of the fundamental measures in supply and demand dynamics, whether it be constrained supply chains, strong product pricing or build out capacity for the product, the long-term outlook for lithium and lithium compounds remains strong.

Nonetheless, for 2018, there have been several analysts that have continued to suggest a wave of supply of lithium compounds and therefore a softening in lithium prices. Our research and “boots on the ground” approach tells a very different story.

The oversupply camp point to increasing capacity from China, Australia and the Atacama that will swamp the market. However, this fails to take account of two critical points. Firstly, the delivery of battery grade lithium compounds is not easy, even with the typical commissioning delays associated with mining projects, there is then the added aspect of a complex and capital-intensive hydrometallurgical plant, to get these commissioned and financed is difficult. Therefore, the reality is the supply will be delayed in our view, and only those projects with sufficient scale and competitive cost structure will be able to attract the financing to enter the supply chain.

Secondly, the additional capacity from Australia is, for the large majority, shipped as spodumene to China, where it is converted to lithium compounds. So, to understand supply, you need to understand the conversion capacity of China, which by all accounts are struggling to install new conversion plants in time and will probably be only able to produce 200,000 tonnes of lithium carbonate in 2019. Both of the above point to a constrained supply chain and not a wave of supply.

When we look at pricing over the period, several detractors will point to the drop in the price of Lithium compounds in China. The reality is that Chinese pricing was influenced in part by brine projects in China needing to sell below battery grade lithium carbonate to fund operations. To us, the most representative pricing of battery grade lithium carbonate is from South America where pricing continued to increase over the year and currently trades at around US$15,000 per tonne of battery grade lithium carbonate.

Despite all of these constraints in supply and the positive outlook on the demand side equities in the lithium market have softened considerably during the year with the Global X lithium ETF dropping by 19% over the six months to June 2018, with some lithium project developers dropping up to 65% over the same period.

Our investments were not immune to this softening, and our principle two investments in Bacanora Lithium and European Lithium reduced in price by 20% and 53% respectively. This, in turn, was reflected in our share price performance which reduced by 33% over the period and our absolute return figures which  were at the period ended 26% which is in line with the return figures on Global X Lithium ETF over the same period.

Table 1: Absolute Return Figures

30/06/2017

31/12/2017

30/06/2018

Book Value (GB£ ,000)

17,904

11,345

11,104

Mark to Market Equity Value (GB£ ,000)

30,882

24,869

14,005

Absolute Return on Equity (%)

72%

119%

26%

Global X Lithium & Battery Tech Returns (%)

13%

51%

27%

 

Despite the performance of our investments, the underlying projects remain sound and have the right cost structure and scale to potentially be significant contributors to the battery supply chain.

Of note was the progress that European Metals Holdings have made during the year. It has improved roast recoveries in their lab test work, and since the end of June 2018 they received approvals to carry out geotechnical drilling and announced that they would be carrying out a revised pre-feasibility study to produce lithium hydroxide which is scheduled to be published in the coming months. Given the pricing and demand for this compound, we would hope to see an improvement in the economics of the project.

Bacanora continued to make progress during the year at a project level, however, as a result of market volatility in the lithium markets, it decided not to proceed with the equity portion of its project financing. It is continuing the front-end engineering design of the project and has drawn down US$25 million of its US$150 million debt facility.

The board and its strategy have evolved significantly since 2014. Its focus since September last year is to invest in earlier stage exploration projects, as this is typically where the largest return is for relatively low levels of investment capital. The risk associated with investing in any resource projects at an early stage is high, therefore, and in order to mitigate this risk, our goal from the outset is to obtain a deep fundamental understanding of the resource, its chemistry and management team.

By doing so, we can eliminate the many of the potential investments that we review during the year and fund projects that we believe will deliver value to our shareholders. We look to fund projects via earning in, at solely our option, and if at all possible look to incentivise our joint venture partners via equity in Cadence against deliverables that will add value. Importantly we also take an active approach to our investments by being part of the management team and enshrining our minority shareholder protections in joint venture agreements.

During the six months, we have reviewed numerous projects, inclusive of brines in the Atacama, Cobalt in the USA, and pegmatites in multiple places in Africa, all of which had their attractions however they did not match our investment criteria so were rejected.

We continue to review possible investments and seek out new opportunities always with the ultimate aim of securing an asset that has the potential to add significant value to our share price.

The future remains very exciting for the Company. We will continue to review our investments in our investee companies, with regular meetings with management. Importantly we will continue to examine the market perception of lithium and if required ensure we limit our exposure to further downside in our equity positions. 

INVESTMENT REVIEW

Bacanora Lithium Plc (“Bacanora”)

At the period end Cadence owned 8.3% 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.

In January 2018 Bacanora published its Feasibility Study (“FS”) on the project. The FS targeted a two-stage open-pit operation, reaching 35,000 tonnes (t) of lithium carbonate (Li2CO3) per annum (“tpa”) in year four. The FS has a pre-tax NPV of US$1.25 billion and an IRR of 26%. The capital and working capital costs of the first stage of production (17,500 t of Li2CO3 per annum) is estimated to be US$460 million. Under our estimation, The FS mine plan currently has some 12% of the plant feed being mined from the 30% joint venture areas owned by Mexalit.

After the period end, Bacanora announced its financing strategy and were able to secure a US$150 million debt funding from RK Mine Finance. Additionally, Bacanora was able to secure conditional investments totalling US$90 million from the State General Reserve of Oman and Bacanora’s off-take partner, Hanwa Co., Ltd. These combined financing represented US$240 million of the US$460 million required. In July Bacanora elected not to proceed with a further US$100 equity placing, citing current volatility in global commodities markets.

Both our 8.3% equity stake in Bacanora and our ownership in the Mexalit joint venture could represent a substantial return for Cadence in the form of cash flow from the Sonora Lithium Project. Which we estimate could be as much  US$106 million (net present value, 10% discount) using a lithium carbonate price of 13,000 per tonne and a dilution of 3X of the current equity on issue in Bacanora. This is of course contingent on Bacanora securing the necessary financing and executing the development of the Sonora Lithium project as per the FS published in January this year.

European Metals Holdings Limited (“EMH”)

At the end of June 2018 and as a result of share issues by EMH Cadence held a 19.7% in EMH, through this equity holding we have an economic interest in the Cinovec lithium and tin deposit.

At an operational level, the Cinovec lithium project progressed well. However, this progress was overshadowed by Czech presidential elections and, in particular, the statement of the Czech Minister of Industry and Trade which purported to terminate the memorandum of understanding between EMH and Czech Ministry of Industry of Trade. As stated by EMH the termination of the MOU does not in any way affect the exploration rights of EMH tenure over its exploration permits.

Despite this, there were substantial strides made in the development of the Cinovec Lithium Project. Of note was the improvement in lithium recoveries announced in March, which was increased to 95%. In addition, EMH continued to work on the pilot scale beneficiation work, this work along with the improved lithium recoveries meant that subsequent to the period end EMH was able to report increased lithium production from 20,800 tpa to 22,500 tpa.

Moreover, EMH has commenced work on an update of the Preliminary Feasibility Study to model the production of higher value lithium hydroxide due to its increasing use in lithium-ion batteries. We expect the results from this to be announced in the coming months. 

San Luis Lithium Project

In December 2017 Cadence Minerals announced that it had executed binding investment agreements to acquire up to 100% of six prospective hard rock lithium assets in Argentina.

These transactions mark the start of the Company’s strategic shift to earn into early stage lithium assets in well-known lithium jurisdictions where we see the potential to deliver shareholder value by investing in projects that have shorter development timeline to cashflow than a typical lithium carbonate producer.

The San Luis Project Consist of claims over 55,773 hectares for six exploration permits within the known spodumene bearing pegmatite fields in San Luis Province, Central Argentina.

During the period under review the investee’s geology team, utilising a range of remote sensing and geographical information system (GIS) tools, have completed several desktop studies which identify highly prospective areas for lithium mineralisation in known spodumene bearing pegmatite bodies. Encouragingly, there are multiple indicators that confirm the presence of spodumene bearing pegmatite bodies including geological structural features, aero-magnetic radiometric data analysis, satellite imagery and differentiation in granitic bodies.

The net result is that out of the 55,773 hectares, comprising the six assets total area, the geology team have identified 10,049 hectares as high-priority areas for the next phase of the exploration programme

Finalised Environmental Impact Assessments have been submitted to the mining regulator for these high priority areas, with applications for drilling permits to follow

The project team are now in discussions with third-party suppliers, including drilling contractors, and intend to fast-track the next phase of exploration as soon as regulatory approval is secured.

On grant of the exploration permits Cadence will acquire up to 49% by spending £1.1m on exploration and drilling, and by issuing £0.4 million of new ordinary shares in Cadence to The Vendors. Cadence has an option to acquire up to 100% by issuing a further £1.75m of new ordinary shares in Cadence. During the period Cadence completed its initial £0.10 million investment for 4% of the exploration permit.

Auroch Minerals

At the end of the period Cadence had a 6.6% interest in Auroch Minerals, its focus over the period under review has been the development of the high-grade zinc, Bonaventura Project and the Arden zinc, copper-cobalt project. Drilling has commenced at both of these highly prospective projects, both of which are expected to take between six and eight weeks to complete.

The Bonaventura Project contains several historic artisanal mines for zinc, lead, copper, gold and silver that were worked at various times up to the 1920’s. Soil-sampling over the Bonaventura Project has been completed with zinc anomalism following the strike of the regional Cygnet-Snelling Fault.

The Vinco Target, which is situated 1,500m along strike from Grainger target, has previously been surveyed using high-resolution aeromagnetics, including induced polarisation (IP) and gravity surveys.

The IP survey interpretation over the Dewrang target identified two-highly chargeable anomalies at approximately 200m depth over a strike length of over 400m. Anomalies indicate the potential for the presence of high-grade base-metal sulphides, making Dewrang a high-priority area for exploration.

In addition to the base metal targets, the Kohinoor target remains highly prospective for gold mineralisation, with historic composite samples taken from the first level of the main historic workings.

The Arden project consists of a Sedex type potential deposit. The Sedex potential was initially discovered by Kennecott (Rio Tinto Group) between 1966 and 1972, identifying anomalous Sedex-style zinc mineralisation up to 40m wide and with a potential for over 10km of the strike. However, since 1980 the area has been the focus of regional diamond exploration, and as such the Sedex horizon at the Ragless Range Target had not been explored.

Auroch has moved quickly to realise the project potential, undertaking reconnaissance field mapping, rock-chip sampling,a reinterpretation of historical data and an Aeromagnetic survey before initiating its maiden drill programme in August 2018. Arden enjoys access to world-class infrastructure including the railway to Port Augusta, which passes just to the south of the tenement.

Macarthur Minerals (“Macarthur”)

Cadence at the end of the period had 12.1% equity interest in Macarthur, which is an Australian mining exploration company which has a diverse portfolio over multiple asset types, commodities and locations.

During the period its efforts have been focused on the early exploration of its gold, nickel and lithium projects in Western Australia.

However of most interest was the work that has been carried on its substantial Iron Ore Projects in the Yilgran Region of Australia, which have Mineral Resources comprised of Indicated Mineral Resources of approximately 54.5 Mt @ 47.2% Fe and approximately 26Mt @ 45.4% Fe Inferred resources.

Subsequent to the year-end Macarthur entered into an exclusive advisory agreement with UK based Capstan Capital Partners LLP (“Capstan”) to seek the necessary funding required to advance Macarthur’s significant iron ore projects located in Western Australia.

Macarthur has been reviewing its iron ore projects in light of the emergence of rail and port capacity through to the Port of Esperance and the cessation of mining at Cleveland-Cliffs Inc’s Asia Pacific Iron Ore projects and Mineral Resources Limited’s Carina project. 

Clancy Exploration (“Clancy”)

At the end of the period, Cadence held 4.5% interest in Clancy, which focused its efforts during the period in acquiring and developing 100% of key cobalt licenses adjacent to the Bou Azzer Cobalt mine in Morocco, which is famous for being a primary cobalt producer. Initial surface sampling has been carried out, and due diligence has been completed. The acquisition is in the process of completion, and we await further news in this regard.

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 (“Yangibana North Project”) 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.

Hastings Technology Metals Ltd (“Hastings”), which is the operator of the Project and the owner of the remaining 70% in the Yangibana North Project, made considerable progress during the year to date. This included securing funding for the initial long lead items for the project and securing an offtake of Memorandum of Understanding with Tyssenkrupp Raw Materials GmbH.

During the period we engaged with the management of Hastings, to discuss and review the reasoning why our joint venture areas are not included in the current mining plans. In conclusion, although mineral resources are substantial, using the currently envisaged beneficiation and hydrometallurgical process, the higher grade in the joint venture areas is offset by the higher processing costs associated with the ore. Therefore, Hastings envision that the ore will be included in the later stages of the mining plan, which is out of the scope of the feasibility study. In this regard, we view that our priority should be to look to extract value from the asset in the short to medium term.

FINANCIAL REVIEW

During the period, the Group made a loss before taxation of £4.60 million (30 June 2017: profit of £0.89 million; year ended 31 December 2017: profit £1.19 million). This was primarily due to a decrease in market price of our investments in Bacanora, following the overall trend in the market within lithium stocks.

There was a weighted basic loss per share of 0.058p (30 June 2017: profit per share 0.011p, 31 December 2016: profit per share 0.015p).  Foreign currency translation differences marginally increased comprehensive loss for the period to £4.66 million (30 June 2017: total comprehensive income of £0.84 million, 31 December 2016: total comprehensive expenditure of £1.88 million).

Administrative expenses decreased by £0.33 million compared to the same period last year; this decrease was driven by cost-cutting measures across the board inclusive of an average 30% reduction in directors salaries, which took effect in April this year. We continue to reduce costs and expect this downward trend in costs for the remainder of this financial year.

The total assets of the group decreased from £35.17 million at 31 December 2017 to £25.41 million. Of this amount, £9.95 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 decrease in 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 £12.9 million. EMH is classified as such because we hold in excess of 19% and Kiran Morzaria, the Chief Executive Office of Cadence is also a Non-Executive Director of EMH.

Our borrowings of £4.18 million as at the 31 December 2017 reduced to £3.06 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 £0.45 million compared to £1.46 million during the same period last year. The variance is attributable to the decreased administrative expenses as highlighted above. We invested a further £0.47 million in blue-chip liquid stocks in the lithium sector. We disposed of £0.44 million some of which included the aforementioned lithium stocks as well as some Bacanora equity, which taken together provided a £0.10 million realised profit on disposal. We also paid back some £1.12 million of our convertible loan during the period, which was the primary driver in reducing our cash position to £0.2 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

Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore

Giles Fitzpatrick

Novum Securities Limited (Joint Broker)

+44 (0) 207 399 9400

Jon Belliss

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 PLC

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2018

 

Notes

Unaudited Period ended 30 June 2018

Unaudited Period ended 30 June 2017

Audited Year ended 31 December 2017

£’000

£’000

£’000

Income

Unrealised (loss)/profit on available for sale assets

(3,730)

2,331

1,353

Realised profit on available for sale assets

105

2

3,118

Other income

48

60

145

(3,577)

2,393

4,616

Share based payments

(3)

(2)

Impairment of intangible assets

(300)

Other administrative expenses

(785)

(1,123)

(1,800)

Total administrative expenses

(788)

(1,123)

(2,102)

Operating (loss)/profit

(4,365)

1,270

2,514

Share of associates losses

(182)

(103)

(339)

Finance cost

(59)

(272)

(986)

(Loss)/profit before taxation

(4,606)

895

1,189

 

 

 

Taxation

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

(4,606)

895

1,189

Other comprehensive (expenditure)/income

Foreign currency translation differences

(53)

(53)

686

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

(53)

(53)

686

Total comprehensive income/(expenditure) for the period

(4,659)

842

1,875

(Loss)/Profit per share

Basic (pence per share)

3

(0.0587)

0.0115

0.0152

Diluted (pence per share)

3

(0.0506)

0.0095

0.0125

CADENCE MINERALS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2018

 

Share capital

Share premium account (restated)

Share-based payment reserve

Hedging, Loan & Exchange reserves

Retained earnings

Total equity

£’000

£’000

£’000

£’000

£’000

£’000

Balance at 1 January 2017

1,192

27,145

4,410

(254)

(7,968)

24,525

Issue of share capital

2

157

159

Transfer on lapse of warrants

(396)

396

On settlement of loan notes

(33)

(33)

Transactions with owners

               2

             157

–         396

–              33

          396  

          126

Foreign exchange

 –

 –

553

 –

553

Profit for the period

895

895

Total comprehensive income for the period

              –  

                –  

              –  

553

895

1,448

Balance at 30 June 2017 (unaudited)

1,194

27,302

4,014

266

(6,677)

26,099

Issue of share capital

8

250

258

Share based payments

2

2

Transfer on lapse of warrants

(285)

285

Transfer on cancellation of options

(553)

553

On issue of loan notes

412

412

On settlement of loan notes

(474)

(474)

Transactions with owners

               8

             250

–         836

(62)

          838

          198

Foreign exchange

133

133

Profit for the period

294

294

Total comprehensive income for the period

              –  

                –  

              –  

133

294

427

Balance at 31 December 2017

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)

On conversion of loan notes

 –

 –

 –

 –

Loss 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

 

CADENCE MINERALS PLC

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2018

 

Unaudited

Unaudited

Audited

 30 June 2018

 30 June 2017

31 December 2017

Assets

Notes

£’000

£’000

£’000

Non-current

Intangible assets

1,875

2,228

1,887

Tangible assets

Investment in associate

12,918

12,879

12,988

14,793

15,107

14,875

Current assets

Trade and other receivables

461

421

722

Available for sale asset

9,946

18,498

13,534

Cash and cash equivalents

216

2,125

2,037

Total current assets

10,623

21,044

16,293

Total assets

25,416

36,151

31,168

EQUITY AND LIABILITIES

Current liabilities

Trade and other payables

290

227

262

Borrowings

3,058

9,825

4,182

Total current liabilities and total liabilities

3,348

10,052

4,444

Equity

Share capital

4

1,202

1,194

1,202

Share premium

27,552

27,302

27,552

Share based payment reserve

3,049

4,014

3,178

Hedging & Exchange reserve

284

266

337

Retained earnings

(10,019)

(6,677)

(5,545)

Total equity and liabilities

to owners of the company

22,068

26,099

26,724

Total equity and liabilities

25,416

36,151

31,168

CADENCE MINERALS PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD 30 JUNE 2018

Unaudited Period ended

Unaudited Period ended

Audited Year ended

30 June 2018

30 June 2017

31 December 2017

£’000

£’000

£’000

Cash flows from operating activities

Operating (loss)/profit

(4,365)

1,270

2,514

Net realised/unrealised (loss)/profit on AFSA

3,625

(2,333)

(4,471)

Impairment of intangible assets

300

Equity settled share-based payments

3

2

Decrease/(increase) in trade and other receivables

261

(19)

(320)

Increase/(decrease) in trade and other payables

28

(376)

(83)

Net cash outflow from operating activities

(448)

(1,458)

(2,058)

Taxation

Cash flows from investing activities

Payments for investments in AFS assets

(476)

(214)

(214)

Receipts on sale of AFS assets

438

16

7,118

Payments for investments in associates

(345)

Investment in exploration costs

(100)

(312)

(270)

Net cash outflow from investing activities

(138)

(510)

6,289

Cash flows from financing activities

Net (loan repayments)/borrowings

(1,176)

(5,400)

Finance cost

(59)

(99)

(986)

Net cash inflow from financing activities

(1,235)

(99)

(6,386)

Net (decrease)/increase in cash and cash equivalents

(1,821)

(2,067)

(2,155)

Cash and cash equivalents at beginning of period

2,037

4,192

4,192

Cash and cash equivalents at end of period

216

2,125

2,037

 

NOTES TO THE INTERIM REPORT

FOR THE PERIOD ENDED 30 JUNE 201

 

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 2017 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 2017 financial statements, which are prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the European Union.   

GOING CONCERN 

The Directors have prepared cash flow forecasts for the period ending 30 September 2018. 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)/profit per share is based on the (loss)/profit 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 2018

30 June 2017

31 December 2017

£’000

£’000

£’000

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

(4,606)

895

1,189

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

  7,851,440,338

  7,773,489,131

  7,811,370,698

Share options and warrants exercisable

  1,259,575,345

  1,689,215,294

  1,664,564,973

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

  9,111,015,683

  9,462,704,425

  9,475,935,671

Basic and diluted (loss)/profit per share (pence)

(0.0587)

0.0115

0.0152

Diluted (loss)/profit per share (pence)

(0.0506)

0.0095

0.0125

 

 

4 SHARE CAPITAL

 

Unaudited

Unaudited

Audited

30 June 2018

30 June 2017

31 December 2017

£’000

£’000

£’000

Allotted, issued and fully paid

173,619,050 deferred shares of 0.24p (30 June and 31 December 2017: 173,619,050)

417

417

417

7,851,440,338 ordinary shares of 0.01p (30 June 2017: 7,777,690,338, 31 December 2017: 7,851,440,338)

                      785

                      777

                      785

                  1,202

                  1,194

                  1,202

 

Cadence Minerals (KDNC) – Macarthur Minerals (TSX-V: MMS) to commence drilling Nickel Sulphide Targets at Lake Giles project, Western Australia.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (“Macarthur”, TSX-V: MMS) has announced it will commence drilling high priority nickel sulphide targets at its Lake Giles project in Western Australia. The targets were derived from recent geophysical surveys using Moving Loop Electromagnetic (“MLEM”). Surveying at Moonshine successfully delineated two bedrock conductors, MC01 and MC02, with a further bedrock conductor identified at the Snark prospect as announced on August 28, 2018.

Highlights:

  • A Moving Loop Electromagnetic (“MLEM”) survey was conducted across three prospects at the Lake Giles project. The survey targets were derived from previous drilling and soil geochemistry data that indicated potential for nickel sulphide.
  • Interpretation of data was undertaken by geophysicists from Newexco Services Pty Ltd who are experts in the application of geophysical surveys for the discovery of nickel sulphide deposits.
  • The survey at Moonshine recorded strong conductance across all five lines with modelling delineating two bedrock conductors, MC01 and MC02.
  • The survey at Snark identified two bedrock conductors at Snark, SC01 and SC02.
  • Conductors MC01 at Moonshine and SC01 at Snark are considered high priority targets and will be tested by drilling. Two drill holes have been planned to intersect the conductors at the point where they display a high EM response.
  • Orbit Drilling has been engaged to undertake the drill program and will mobilise to site in October upon receipt of drilling permits. An initial program of two holes drilled to a depth of 200m will be completed by the end of October. Follow-up drilling is scheduled to commence on return of favourable results.

Cadence holds approximately 12% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on lithium, iron ore and gold in the Pilbara region of 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=8947709919633253&qm_symbol=MMS

Cadence Minerals CEO Kiran Morzaria commented: “We are greatly encouraged by the progress and recent developments reported by the Macarthur Minerals team. Having already amassed a considerable historical dataset for Lake Giles, if the presence of a massive sulphide structure is confirmed, as CEO Cameron McCall says it will add additional value to the project with multiple commodities, and for Cadence Minerals it will provide further validation for the Macarthur investment case. We look forward to the results next month.

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
Hannam & Partners LLP (Joint Broker) +44 (0) 207 907 8500
Neil Passmore
Ingo Hofmaier

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.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

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.

Brand CEO Alan Green talks Cadence Minerals #KDNC, Flying Brands #FBDU, ECR Minerals #ECR & Benchmark Holdings #BMK on Vox Markets podcast

Brand CEO Alan Green talks Cadence Minerals #KDNC, Flying Brands #FBDU, ECR Minerals #ECR & Benchmark Holdings #BMK with Justin Waite on the Vox Markets podcast. The interview is 28 minutes 30 seconds in.

Cadence Minerals #KDNC Restructuring of Loan Note

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) announced on the 1 November 2017 that it had repaid US$6.45 million of its US$12.9 million loan note and restructured the remaining US$6.45 million as two separate convertible loan notes (“Convertible Notes”), which were due to mature at the end of September 2018.

Cadence is pleased to announce that it has refinanced the Convertible Notes by agreeing a US$4.87 million amortizing loan note with a consortium of institutional lenders. The loan will be primarily used to repay the outstanding balances due on the Convertible Notes (US$4.2 million) and future interest payments. The loan will attract an effective 9% per annum and has a principle repayment holiday until 1st January 2019. After which the loan will be paid via equal instalments over a 12-month period, with the principle being fully repaid by the 1st December 2019. The note is secured over the Company’s assets.

Appointment of Joint Broker

The Company is pleased to announce that is has appointed Novum Securities Limited as joint broker to the Company with immediate effect.

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

Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore

Ingo Hofmaier

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other minerals to achieve this goal. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. 

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

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 – Update on Zulu Lithium Project

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) announced on the 27 June 2018 that it had entered into a conditional Heads of Terms with Premier African Minerals Limited (“Premier”) to earn up to 30% directly into the Zulu Lithium and Tantalum Project in Zimbabwe.

Cadence completed its due diligence, however, and as a result, it was unable to reach final terms with Premier.

Cadence is continuing to review several upstream mineral assets, where we see the potential to deliver shareholder value by investing in projects that have a short development timeline to cashflow. Our intent is to earn in at a project level basis, and we are focused on assets where we can both hold larger stakes and also utilise our considerable mining and financial management expertise to achieve a high level of returns.

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

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

Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore

Ingo Hofmaier

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.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

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.

 

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