Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that Hastings Technology Metals (ASX: HAS) (“Hastings”), has announced that it has successfully received in-principle eligibility for the German United Loan Guarantee Scheme (UFK – Garantien für Ungebundene Finanzkredite) from Euler Hermes Aktiengesellschaft (“Euler Hermes”) who are mandated by the German Federal Government as administrators of the UFK scheme for an indicative amount of up to USD140 million (approx AUD200 million). The UFK scheme offers concessionary loan terms typically over a period of seven years.
Cadence owns 30% of the Yangibana North., Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North Rare Earth Deposit which form part of the Yangibana Rare Earth Deposit. Probable Ore Reserves of some 2.1 million tonnes at 1.66% total rare earth elements are contained within 30% owned joint venture tenements. The Probable Ore Reserves of the entire Yangibana Rare Earth Deposit is 10.35 million tonnes at 1.22% total rare earth elements. Further details of these reserves and pre-feasibility study can be found at:
- In principle eligibility for the German Government UFK scheme confirmed for up to USD 140 million (approx AUD 200 million) from Euler Hermes.
- UFK scheme offers concessionary project finance loan terms for a period of seven years.
- Progressing on due diligence on the technical, economic, environmental, legal and special aspects of the Yangibana project.
The confirmation is based on the understanding that a German Tier 1 company will be the off-taker for a minimum of 5,000 tonnes of Mixed Rare Earth Carbonate (MREC) per annum from Hastings’ Yangibana Rare Earth Project for a minimum contract period of 10 years. Further due diligence is being undertaken on the economic, technical, legal, environmental and social aspects and the UFK loan application will be subject to final approval by the German Government’s Inter Ministerial Committee.
As announced in July 2018, Hastings has exclusively mandated the German bank, KfW IPEX-Bank GmbH (“KfW IPEX Bank”) to provide project finance loan advisory services and assist Hastings in relation to securing approval from Euler Hermes Aktiengesellschaft (“Euler Hermes”) for the UFK Cover. KfW IPEX-Bank, a wholly owned subsidiary of the KfW Group is a leading German export and project finance specialist with significant experience in the debt financing of mining projects worldwide.
The Yangibana Project involves the development of Rare Earth’s deposits rich in neodymium and praseodymium, elements vital to permanent magnets that provide many critical components of wide-ranging high-tech products, including electric vehicles, renewable energy wind turbines, robotics, medical applications and others. The development of this project is expected to bring benefits to the Gascoyne, Carnarvon and Meekatharra regions of northern Australia including through employment and business opportunities. The Yangibana Project aims to be the next significant producer of neodymium and praseodymium outside of China.
Full Hastings ASX announcement here:
Cadence Minerals CEO Kiran Morzaria commented:“The team at Cadence are encouraged that Hastings Technology Metals continues to progress financing options for the Yangibana Rare Earths Project. We look forward to further developments.”
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For further information:
|Cadence Minerals plc
|+44 (0) 207 440 0647
|WH Ireland Limited (NOMAD & Broker)
|+44 (0) 207 220 1666
|Novum Securities Limited (Joint Broker)
|+44 (0) 207 399 9400
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Certain statements in this announcement are or may be deemed to be forward-lookingstatements. Forward-lookingstatements 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-lookingstatements 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 keypersonnel 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-lookingstatements.