Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that it has been advised by Castillo Copper (ASX/LON: CCZ) (“Castillo”) that it will be extending the 90-day option to acquire the Picasso and Litchfield Lithium Projects in prime regions in Western Australia (WA) and the Northern Territory (NT) respectively. This is primarily due to processing delays at the laboratories, due to the huge demand to process samples, which is extending timelines significantly.
For the full Castillo announcement, please click link here
- CCZ is extending the 90-day option period to acquire the Litchfield and Picasso Lithium Projects1:
- More than 650 surface assays for the Litchfield Lithium Project1, which is contiguous to Core Lithium’s (ASX: CXO) strategic Finniss Lithium Project (JORC compliant ore reserves: 7.4Mt @ 1.3% Li2O)2, remain in process queues at the laboratory
- Analysing and interpreting these assay results should potentially enable CCZ’s geology team to determine if lithium mineralisation is contiguous between the Lichfield and Finniss Lithium Projects1
- Under the terms of the option agreement, the extension remains effective until 30 days after the receipt of the full suite of assay results.
Whilst reviewing available information for both projects has been positive, enhancing their potential to host lithium mineralisation, the assays are critical to enable due diligence to be finalised. This is especially the case for the Litchfield Lithium Project as it is contiguous to CXO’s Finniss Lithium Project which has JORC compliant ore reserves of 7.4Mt @ 1.3% Li2O2.
There are over 650 surface samples from four zones on the boundary with the Finniss Lithium Project. Analysing and interpreting these assay results should enable CCZ’s geology team to potentially determine if there is contiguous lithium mineralisation apparent and finalise due diligence.
Due to unprecedented demand, the timelines to process samples at laboratories have been extended significantly. CCZ’s geology team are in regular contact with the laboratories and hope to have clarity on when the assays will be received shortly.
Simon Paull, Managing Director of Castillo Copper, commented: “The Board has advised the Vendor Group that it is extending the option period to acquire the Litchfield and Picasso Lithium Projects due to ongoing delays in receiving key assay results for both projects. Encouragingly, however, the Board is pleased with the due process undertaken to date and believes both assets have considerable potential to host lithium mineralisation. The Board looks forward to receiving these assays and concluding due diligence shortly thereafter.”
Cadence CEO Kiran Morzaria added: “We are both pleased to extend Castillo’s option to acquire the Litchfield and Picasso Lithium projects and to note the findings of the Castillo team and their belief that both assets have considerable potential to host lithium mineralisation. We look forward to further progress.”
Lithium Technologies Pty Ltd (“LT”) and Lithium Supplies Pty Ltd (“LS”), in which Cadence owns a 29% shareholding, eachown 50% of Synergy Prospecting Pty Ltd (“Synergy”) and have granted , as announced on 29 September 2021, Castillo a 90-day option toacquire 100% of the outstanding shares of LT and LS and by implication 100% of Synergy.
During this 90-day period, Castillo will be conducting due diligence on all three entities to ensure the underlying assets are in good standing and there are no material adverse issues. Under the terms of the option agreement, Castillo can exercise its right to acquireLT, LS and Synergy at any time during the 90-day period.
Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects:
- A large footprint in the in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region.
- Four high-quality prospective assets across Zambia’s copper-belt which is the second largest copper producer in Africa.
- A large tenure footprint proximal to Broken Hill’s world-class deposit that is prospective for zinc-silver-lead-copper-gold.
- Cangai Copper Mine in northern New South Wales, which is one of Australia’s highest grading historic copper mines.
The primary assets of Synergy, which are wholly-owned, comprise the Litchfield Lithium Project (EL31774) in NT and Picasso Lithium Project (E63/1888) in WA. In addition, Synergy has an application in NT – EL31828 – known as the Alcoota Lithium Project, which comprises ground proximal to Alice Springs. Castillo will need to undertake further geological due diligence on this application.
LT and LS also hold applications for six lithium properties in San Luis Province, Central Argentina. Again, Castillo will need toundertake further geological due diligence on these applications.
Further details on these assets and all the applications and permits are contained on our website here
Option terms & consideration
The terms of the 90-day option are as follows:
- A$50,000 non-refundable deposit in cash on formally granting the option that will go directly to Synergy for working capital purposes.
Upon exercising the option within the 90-day period, the binding consideration terms are as follows:
- A$1m script payment in CCZ shares will become payable to the Vendor Group based on the 14-day WVAP calculated from the date of which the option agreement is announced to the ASX. Note, the Vendor Group will be subject to a 6-month voluntary escrow period for 50% of the shares and 12-months for the 50% balance from the date of settlement. In addition, both parties agree to sign off on a binding term sheet.
Incremental consideration terms are applicable if the following milestones are achieved:
- A$1m script payment in CCZ’s shares to the Vendor Group based on the 14-day WVAP if two drill-holes produce assayed intercepts greater or equal to a true width of at least 10m @ 1.3% Li2O.Note, the two holes will be at least 100m apart, but not greater than 200m.
- A$1m script payment in CCZ’s shares to the Vendor Group based on the 14-day WVAP if a JORC compliant total inferred resource of at least 7Mt @ 1.3% Li2O is modelled by SRK Consulting.
- In the event of commercial mining operations commencing a 2% NSR will be payable to the nominees of the facilitator.
1) CCZ ASX Release – 29 September & 20 October 2021
2) CXO ASX Release – 21 September 2021 (Annual Report)
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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.
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believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with suchforward-looking statements.