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Cadence Minerals #KDNC – Comprehensive surface sampling campaign undertaken by Castillo Copper (ASX/LON: CCZ) at the Litchfield Lithium Project.

Further to the announcements of 29 September 2021 and 7 October 2021, Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) ispleased to announce that a comprehensive surface sampling campaign has been undertaken by Castillo Copper (ASX/LON: CCZ)(“Castillo”) at the Litchfield Lithium Project in Australia’s Northern Territory. Castillo is the only third-party to date which has reviewed extensive site visit reports on the Litchfield Lithium Project that were arranged by Cadence’s geology consultant.

For the full Castillo announcement, please click link here.

The reports have highlighted four target zones where comprehensive surface sampling was undertaken, primarily along the western boundary which is contiguous to Core Lithium’s (“CXO”) (ASX: CXO) Finniss Lithium Project1 and coincident with government mapped pegmatite occurrences2.

Due diligence 

Reviewing historical data, as well as the extensive site visit reports, has provided considerable insight into the Litchfield Lithium Project’s exploration potential. With satellite imagery3 already confirming there is comparable geology between the Finniss and Litchfield Lithium Projects, assay results for 657 surface samples are likely to have a key bearing on the due diligence process, especially if the lithium mineralisation proves to be contiguous.  

Castillo’s Managing Director Simon Paull commented: The depth of the surface sampling programme conducted by the Vendor Group’s geology consultant is impressive, especially as it covers our main area of interest within the tenure. Favourable assay results should make the case for the Litchfield Lithium Project significantly more compelling and hasten our due diligence efforts.”

Cadence CEO Kiran Morzaria added: “We are pleased to note the progress announced today by Castillo as it advances its due diligence programme. The data review undertaken once again bears out the initial findings announced by Cadence to the market on March 4th 2019. We look forward to the assay results.” 

Overview

Lithium Technologies Pty Ltd (“LT”) and Lithium Supplies Pty Ltd (“LS”), in which Cadence owns a 29% shareholding, each own 50% ofSynergy Prospecting Pty Ltd (“Synergy”) and have granted , as announced on 29 September 2021, Castillo a 90-day option to acquire100% 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 anytime 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.

References

  1. CXO ASX Release – 21 September 2021 (Annual Report) & CCZ ASX Release – 29 September 2021
  2. Frater, K. (2005). Tin-Tantalum Pegmatite Mineralisation of the Northen Territory – Report 16 ISSN 0814-7477. Northern Territory Geological Survey; and, Rawlings, D. (2017, March). Lithium-rich pegmatites of the Bynoe Field. AGES 2017 Proceedings, NT Geological Survey (p. 3pp). Northern Territory Government.
  3. Satellite imagery from Geological Survey of Western Australia. Available at: https://www.dmp.wa.gov.au/Geological-Survey/Geological-Survey-262.aspx & CCZ ASX Release – 29 September 2021

 

– Ends –

 

For further information: Cadence Minerals plc  

+44 (0) 7879 584153

Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)

James Joyce

+44 (0) 207 220 1666
Darshan Patel
Novum Securities Limited (Joint Broker)

Jon Belliss

+44 (0) 207 399 9400

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 notbased on historical facts but rather on the Directors’ current expectations and assumptions regarding Cadence Minerals Plc’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of fundingthereof) 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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are basedupon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will beconsistent with such forward-looking statements.

Alan Green discusses AIS Resources #AIS, MetalNRG #MNRG, Mode Plc #MODE & Cadence Minerals #KDNC on the Stockbox Research podcast

Alan Green discusses AIS Resources #AIS, MetalNRG #MNRG, Mode Plc #MODE & Cadence Minerals #KDNC on the Stockbox Research podcast

Cadence Minerals #KDNC – European Metals #EMH Resource Upgrade at Cinovec Lithium Project.

 

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to note that European Metals Holdings Limited (“European Metals” “EMH”) has announced final drill results and an upgraded mineral resource estimate for the lithium and tin resources in the Cinovec Lithium-Tin deposit in the Czech Republic.

EMH has recently completed a drilling campaign at Cinovec South, comprising 22 diamond drill core holes for 6,622 metres, with the goal of increasing resource certainty in the existing resource model in and around the initial planned mining areas and upgrading part of the resource from the Indicated category to the higher confidence Measured category.

Highlights

  • Re-classification of 53.3 million tonnes ( MT ) into Measured resource category grading 0.47% Li2O and 0.08% Sn.
  • 5 MT of Inferred resource upgraded to Indicated resource category 
  • The Measured and Indicated resource has increased from 372.4 to 413.4 MT @ 0.47% Li2O and 0.05%Sn .
  • The total Measured, Indicated and Inferred resources have increased by 12.3MT to 708.2MT @ 0.43% Li2O and 0.05% Sn (0.1% Li (0.2153% Li2O) Cut-off).
  • Increase in overall resource to 7.39 MT LCE
  • Analysis received for final 10 diamond core holes in the Geomet s.r.o. drilling program including:
    • Hole CIS-16 returned 101.7m averaging 0.59% Li2O, incl. 11.35m @ 0.85% Li2O
    • Hole CIS-32 returned 61m averaging 0.66% Li2O and 0.17% Sn, incl. 30.5m @ 0.30% Sn
    • Hole CIS-33 returned 113.3m averaging 0.54% Li2O, incl. 14.7m @ 0.60% Li2O
    • Hole CIS-34 returned 111.4m averaging 0.54% Li2O and 0.13% Sn, incl. 21.15m @ 0.71% Li2O and 0.57% Sn

Link here for the full EMH announcement:  https://www.londonstockexchange.com/news-article/EMH/resource-upgrade-at-cinovec-lithium-project/15171030

European Metals Executive Chairman Keith Coughlan commented; “The primary stated aim of this drilling program was to convert a larger portion of the resource to the measured category to provide greater certainty of the financial model and security to financiers. The results clearly indicate that the program has been successful and the robustness and consistency of the Cinovec resource further demonstrated. As we move closer to ultimate financing and offtake discussions, this higher degree of certainty provides more funding options for the project. Results from the final drill holes of the program have been in line with or better than expected. 

“As we have reported previously, because zinnwaldite is paramagnetic, wet magnetic separation, the first stage of the ore processing has the effect of greatly increasing the grade of lithium oxide in the concentrate to approximately 2.85%. The zinnwaldite concentrate produced from Cinovec requires only roasting, compared to the calcination and roasting required of processing spodumene. This not only improves the economics, it will also have the effect of considerably reducing greenhouse gas emissions of the Project when compared to spodumene projects.”

Cadence CEO Kiran Morzaria added; “Today’s resource upgrade for total Measured, Indicated and Inferred resources adds greater value to Cinovec’s already exceptional potential as a future battery grade lithium supply hub for Europe and the rest of the world. Cadence are pleased to remain shareholders and supporters of EMH, and we look forward to further developments.”

Cadence Minerals Holding in EMH

Cadence holds approximately 9.7% percent of the equity in European Metals, which, through its wholly owned Subsidiary, Geomet s.r.o. (“Geomet”), controls the mineral exploration licenses awarded by the Czech State over Cinovec.

– Ends –

For further information:

Cadence Minerals plc +44 (0) 7879 584153
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
Darshan Patel
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-lookingstatements.

Amapa Transformation – Cadence Minerals #KDNC CEO Kiran Morzaria talks to Alan Green direct from Santana Port, Amapa

Amapa Transformation Cadence Minerals #KDNC CEO Kiran Morzaria talks to Alan Green direct from the Port of Santana at Amapa.

~ Port operations

~ Bank Credit Committee approval

~ Pace of restructuring and the positive impact on the community and workers

~ Next steps

Cadence Minerals #KDNC – Bank Credit Committee Approval for Amapa Project Settlement Agreement

 

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that it has received confirmation from the secured bank creditors that they have obtained approval from their credit committees with respect to the proposed terms of the settlement agreement (“Approval”).

Highlights:

  • Bank credit committee approval for secured bank creditors assits in paving the way for Cadence to vest initial 20% in the Amapa Iron Ore Project
  • On the effective date of the settlement agreement Cadence’s and Indo Sino’s joint venture company will own 99.9% of the Amapa Project
  • The Amapa Iron Ore Project consists of an integrated mine, processing plant, railway, and privately owned port. It was previously owned by Anglo American and produced 6.1 million tonnes of iron ore per annum, and was valued at US$ 660 million.
  • The current Mineral Resource of the Amapa Project consists of 7 million tonnes grading 39.7% Fe in the Indicated category and 8.7Mt at 36.9% Fe in the Inferred catergory

The Approval is subject to the completion of KYC (know your client) and the finalisation of the documentation reflecting the agreement in principle as announced on the 2 September 2020). The Approval assists in paving the way for Cadence to vest its initial 20% indirect interest in Amapa Iron Project (“The Amapa Project”). The Amapa Project consists of an integrated mine, processing plant, railway, and privately owned port. It was previously owned by Anglo American and produced 6.1 million tonnes of iron ore[1] per annum, and was valued by Anglo American at US$ 660 million[2].

While awaiting credit committee approval, the drafting of the final settlement documents have continued to progress. On the effective date of the  Settlement Agreement and under the Judicial Restructuring Plan (“JRP”) Cadence and Indo Sino Trade Pte Ltd (Indo Sino), via their joint venture company, will own 99.9% of DEV Mineração S.A., the owner of the Amapa Project.

Cadence Non-Executive Chairman, Andrew Suckling, commented; “As I have said previously, in my time working with commodity projects around the world, I have rarely if ever seen a lapsed mining project with this sort of potential. Today’s announcement is a landmark for Amapa, both in terms of certainty for DEV employees, the wider Amapa community and for Cadence shareholders. I know how hard the team on the ground there have worked to make this happen, and on behalf of our board I would like to express our thanks and gratitude to DEV, the Government of Amapa, the team of local Government officers and bank committees and administrators for contributing to this momentous step in our history.”

“In its previous life, Amapá’s output contributed significantly to the regional economy. Once again it is set to create new opportunities for the community, and will help to improve prospects in employment, health and education for this region in Brazil as the world emerges from the COVID crisis.”

Cadence CEO, Kiran Morzaria, commented: “After a long and protracted process, I am delighted to be able to announce to you that we have now received Credit Committee Approval for the secured bank creditors to execute the Settlement Agreement. Cadence can then vest its initial 20% and eventually a further 7%, which in practical terms means we have a clear path and process to get Amapárecommissioned, licensed and back into production.”

“On my arrival at Amapá last week, I was deeply impressed by the rapid progress made by the DEV team, with reconstruction of some of the administrative and community infrastructure already well advanced. We look forward to working alongside both DEV and Indo Sino to continue to develop this asset, creating further opportunity and prosperity for the Amapa region, and of course delivering ongoing value for all stakeholders.”

About the Amapa Project

The Amapa Project commenced operations in December 2007 with the first production of iron ore concentrate product of 712 kt in 2008.  In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapa Project in 2008 as part of a larger package of mining assets in Brazil.

Cadence updated the Mineral Resource Estimate on 2 November 2020. Increasing the MRE by 21%. The current MRE contains an Mineral Resource 176.7 million tonnes grading 39.7% Fe in the Indicated category and Mineral Resource of 8.7Mt at 36.9% in the Inferred category, both reported within an optimised pit shell and using a cut-off grade of 25% Fe.

Production steadily increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012.  During this period, Anglo American reported operating profits from their 70% ownership in the Amapa Project of USD 120 million (100% USD 171 million) and USD 54 million (100% USD 77 million).

Before its sale in 2012, Anglo American valued its 70% stake in Amapa Project at USD 866 million (100% 1.2 billion). It impaired the asset in its 2012 Annual Accounts to USD 462 million (100% USD 660 million.

DEV filed for judicial protection in August 2015 in Brazil, and mining ceased at the Amapa Project. A judicial order in early 2019 offered investors and creditors the opportunity to file a revised JRP. Cadence and Indo Sino filed a conditional JRP, which creditors approved in August 2019. Cadence, Indo Sino and DEV have continued to develop the Amapa Project and satisfy the conditions of the JRP.

Details of the Joint Venture Agreement

The agreement with our joint venture partner, Indo Sino, is to invest in and acquire up to a 27% of a joint venture company Pedra Branca Alliance Pte. Ltd. (“JV Co”).  On Completion and registration of the Settlement Agreement the  equity of DEV Mineração S.A. (“DEV”) will be transferred to the JV Co, at which point it will own 99.9% of the Amapa Project. Should Indo Sino seek further 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.

To acquire its 27% interest Cadence will invest US$ 6 million over two stages in JV Co. 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. If Cadence is unable to complete the second stage of the investment or not exercise its right of first refusal under the terms of the Agreement, Indo Sino will have a twelve-month option to buy the shares in JV Co held by Cadence for 1.5 (1 ½) times the price paid by Cadence for such shares.

Cadence’s investment is conditional on several material preconditions, which include the grant of key operating licences and the release of bank securities over the asset. On completion of Cadence’s investment (not including the first right of refusal), our joint venture partner Indo Sino will own 73% of JV Co. The Agreement also contains security and default clauses which if triggered causes an upwards adjustment mechanism to allow Cadence to either receive cash from JV Co or receive additional shares in JV Co. In the latter case, Cadence’s shareholding in the JV Co will not go above 49.9%.

On completion of the US$ 6 million investment, Cadence will have the right to appoint two members to a five-member board, with the remaining three comprising of one member jointly appointed by Cadence and Indo Sino and two appointed by Indo Sino.

 

– Ends –

 

For further information:

Cadence Minerals plc                                                    +44 (0) 7879 584153
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)                                 +44 (0) 207 220 1666
James Joyce
Darshan Patel
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 Cadence Minerals Plc’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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.

[1] Anglo American, Annual Report 2012, page 89, https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group/PLC/investors/annual-reporting/2013/annual-report2012.pdf

[2] Anglo American, Annual Report 2012, page 183, https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group/PLC/investors/annual-reporting/2013/annual-report2012.pdf

Cadence Minerals #KDNC – CEO Kiran Morzaria talks to Alan Green directly from Amapa, Brazil

Cadence Minerals #KDNC – CEO Kiran Morzaria talks to Alan Green directly from Amapa, Brazil.

– Progress on sale of hard rock lithium assets to Castillo Copper
– Amapa – Why Kiran has travelled there, developments, recommissioning, bank creditors, shareholders, Amapa community, next steps..

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Cadence Minerals #KDNC – Castillo Copper (ASX/LON: #CCZ) Identifies Significant pegmatite outcropping along Litchfield Lithium Project’s western boundary

Further to the announcement of 29 September 2021, Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that initial due diligence undertaken by Castillo Copper(ASX/LON: CCZ) (“Castillo”) on the Litchfield Lithium Project in Australia’s Northern Territory has highlighted significant pegmatite outcropping along the north-west boundary. This follows the Castillo announcement on Monday October 4th 2021, that preliminary due diligence on the Picasso Lithium Project, near Norseman in Western Australia, has verified multiple lithium surface occurrences across the tenure that align with pegmatite outcropping.

For full release of the Castillo announcement, please see here

Highlights:

 

  • Follow up site visit to the Litchfield Lithium Project in the Northern Territory highlighted significant pegmatite outcropping along the western boundary
  • This is contiguous to Core Lithium’s (“CXO”) (ASX: CXO) Finnis Lithium Project1which has JORC compliant ore reserves (7.4Mt @ 1.3% Li2O) 1
  • With satellite imagery2verifying the geology in the Litchfield Lithium Project (NW quadrant) is comparable to CXO’s ground, CCZ is awaiting assay results on 657 surface samples (taken along the NW boundary) to determine the potential for contiguous mineralisation:
  • Encouragingly, the site-visit geological reports noted the areas sampled mostly comprised metamorphic rocks linked to the Burrell Creek formation – a host rock for the regional occurrences of pegmatites.

As announced on September 29th 2021, satellite imagery has verified the geology along the Litchfield Lithium Project’s north-west boundary is comparable to CXO’s ground. Cadence’s geological consultant conducted intensive surface sampling across four target areas within the NW quadrant, taking 657 samples to determine the potential for contiguous mineralisation. The sampled areas mostly comprised metamorphic rocks linked to the Burrell Creek formation – a host rock for the regional occurrences of pegmatites. The samples are at the laboratory undergoing further analysis, with results expected in the coming weeks. 

Castillo’s Managing Director Simon Paull commented: Initial due diligence at the Litchfield Lithium Project is off to an excellent start, with demonstrable photographic evidence of pegmatite outcropping along the western boundary. The Board now awaits the outcome of assay results which will determine the potential for contiguous mineralisation with CXO’s Finniss Lithium Project.”

Cadence CEO Kiran Morzaria added: “We are pleased to note that the initial due diligence conducted by Castillo both at Litchfield and Picasso bears out the initial findings announced by Cadence to the market on March 4th 2019. We look forward to further developments” 

Overview

LT and LS each own 50% of Synergy Prospecting Pty Ltd (“Synergy”), and have granted Castillo a 90-day option to acquire 100% of theoutstanding 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 anytime 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.

References

1. CXO ASX Release – 21 September 2021 (Annual Report) & CCZ ASX Release – 29 September 2021

2.  Satellite imagery from Geological Survey of Western Australia. Available at:  https://www.dmp.wa.gov.au/Geological-Survey/Geological-Survey-262.aspx  & CCZ ASX Release – 29 September 2021

– Ends –

For further information: Cadence Minerals plc  

+44 (0) 7879 584153

Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)

James Joyce

+44 (0) 207 220 1666
Darshan Patel
Novum Securities Limited (Joint Broker)

Jon Belliss

+44 (0) 207 399 9400

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 notbased on historical facts but rather on the Directors’ current expectations and assumptions regarding Cadence Minerals Plc’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of fundingthereof) 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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are basedupon what the Directors

believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with suchforward-looking statements.

Cadence Minerals #KDNC – Option Granted to Castillo Copper (ASX/LON: CCZ) to Acquire the Litchfield and Picasso Lithium Projects in Australia.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that Castillo Copper (ASX/LON: CCZ) (“Castillo”) has entered into a 90-day option agreement with Lithium Technologies Pty Ltd (“LT”) and Lithium Supplies Pty Ltd (“LS”), in which Cadence owns a 29% shareholding, to acquire  subject to due diligence  the Litchfield and Picasso Lithium Projects in the Northern Territory (NT) and Western Australia (WA) respectively.

Highlights:

  • ASX and London listed Castillo has a 90-day option to acquire – subject to due diligence – the Litchfield and Picasso Lithium Projects.
  • Consideration for 100% of the holding companies which hold these assets (plus others) is up to AUS$ 3 million in equity of Castillo.
  • Castillo 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.
  • The Litchfield Lithium Project is contiguous to Core Lithium’s (ASX: CXO) strategic Finniss Lithium Project which has JORC compliant ore reserves (7.4Mt @ 1.3% Li2O), with production slated to start in 2H 20221. There is potential for lithium pegmatite bodies along Litchfield’s north-west boundary.
  • The Picasso Lithium Project in WA is proximal to Liontown’s Resources’ (ASX: LTR) Buldania Project, with a JORC compliant resource at 14.9Mt @ 0.97% Li2O3 and has mapped pegmatites that potentially host lithium mineralisation.

Cadence CEO Kiran Morzaria added: “The potential acquisition by Castillo provides Cadence with an exposure to developing copper assets which complements our already substantial lithium portfolio. Moreover, given Castillo’s established in country leadership and cash position we see this potential acquisition by Castillo as the best strategic approach to maximize returns for our shareholders. We look forward to seeing Castillo develop these assets further.”

Castillo’s Managing Director Simon Paull commented: “Acquiring prospective lithium projects, which complement the copper assets, arguably provides Castillo with a strong comparative advantage moving forward. In focusing on developing copper and lithium projects, the Board is positioning Castillo to potentially create significant incremental value from the transition towards renewable energy sources and accelerating demand for electric vehicles globally.”

Overview

LT and LS each own 50% of Synergy Prospecting Pty Ltd (“Synergy”) and have granted Castillo a 90-day option to acquire 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 acquire LT, 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 to undertake 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.

 Ends 

For further information: Cadence Minerals plc

 

+44 (0) 7879 584153

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

James Joyce

+44 (0) 207 220 1666

Darshan Patel

Novum Securities Limited (Joint Broker)

Jon Belliss

+44 (0) 207 399 9400

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 Cadence Minerals Plc’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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors

believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.

Cadence Minerals #KDNC – Alan Green talks to CEO Kiran Morzaria

interview thumb

 

Alan Green talks to Cadence Minerals CEO Kiran Morzaria:
– Interim profits from equity investments
– N Australia hard rock lithium assets
– Yangibana Rare Earth Deposit and Sonora Lithium Project mineral concessions
– Amapa – what will a fully recommissioned mine mean to Cadence, shareholders & Amapa community?
– Secured bank creditor signify – why are we still waiting?
– Share price fall
– Upcoming value inflection points

 

Cadence Minerals #KDNC – Interim Results

Cadence Minerals plc (AIM/NEX: KDNC) is pleased to announce its interim results for the six months ended 30 June 2021.

Highlights

The focus of the Company since the beginning of the year has been its investment into the Amapa Iron Ore Project (‘Amapa Project’). This investment continues to be our top priority which has involved finalising the settlement agreement with the secured bank creditors and the advancement of the pre-feasibility study on the asset. The delays in crystallising our investment are a result of the secured bank creditors’ internal bureaucratic process, which is required when settling a loan of this value and under the terms agreed. Nonetheless we have continued to move the Amapa Project forward which has included, amongst other things, the iron ore stockpile shipments commencing in March and the pre-feasibility studies starting soon after that.

We are also in the process of reviewing our privately held assets, in particular, our early-stage lithium prospects in north Australia. We believe that these could be of some strategic importance given their proximity to the Finniss Project, owned by ASX listed Core Lithium.

During the period our equity investments have performed very well, primarily driven by the performance of European Metals Holdings.  Our equity investments generated a total income of £3.54 million resulting in profit before taxation of £2.84 million for the six months ended June 2021.

At a macro-economic level, the first half of 2021 saw the continued global recovery from the physical demand shock from COVID-19 experienced in 2020. According to the World Bank Group, the global economy is set to expand some 5.6% in 2021, its most robust post-recession pace in 80 years. However, this recovery is expected to be uneven and primarily reflects sharp rebounds in some major economies – most notably the United States – driven by substantial fiscal support. These ongoing monetary easing programmes have continued to support commodity prices and, in particular iron ore in the first half of this year. In addition, the accelerated transition and electrification of vehicles has increased lithium compound pricing, with the Benchmark Lithium Price Index up 85.3% on a year-to-date basis.

After the period end, we saw a softening of iron ore and other commodities (although lithium compound pricing remains strong). We believe this is primarily driven by China’s protectionist policies, including the possible imposition of steel quotas, crackdowns on speculative trading and the potential spread of the COVID-19 Delta variant. We expect the demand–supply balance to remain relatively tight for iron ore and lithium compounds in the medium term although there is still some residual uncertainty about how vaccine deployment and the policy and behavioural response to the newer, more infectious strains of COVID-19 will interact over the coming quarters.

As outlined in our annual report and accounts, Cadence operates an investment strategy that includes both investments in private projects via a private equity model and investments in public equity. In both investment classes, we take either an active or passive role. We have reported on each class below.

Private Investments (Active) 

The Amapa Iron Ore Project, Brazil

The Amapa Project is a large-scale open-pit iron ore mine with associated rail, port and beneficiation facilities that commenced operations in December 2007. In 2019, Cadence entered into a binding investment agreement to invest in and acquire up to 27% of the Amapa iron ore mine, beneficiation plant, railway and private port owned by DEV Mineração S.A (‘DEV’) (‘The Agreement’). The Agreement also gave Cadence a first right of refusal to increase its stake to 49%.

To acquire its 27% interest, Cadence will invest US$6 million over two stages in a joint venture (‘JV’) company. The first stage is for 20% of the JV, the consideration for which is US$2.5 million. The second stage of investment is for a further 7% of the JV for a consideration of US$3.5 million. The investments are wholly contingent on DEV delivering several key preconditions. The funds for the first stage of investment are currently held in a judicial trust account of the commercial court of Sao Paulo.

All of our shareholders are aware that the remaining major precondition for Cadence to make its first stage investment in the Amapa Project requires DEV and the investors (Cadence and Indo Sino via our JV company) to reach a settlement agreement with the secured bank creditors. As of the date of the publication of these interims, the investors, DEV, and the secured bank creditors have agreed on the principal terms of the settlement agreement, which include the quantum, timing and all other material terms. The final settlement agreement is in near-final form, and the secured bank creditors have either had credit committee approval or are awaiting it.

We understand that this process has been frustrating, given that we agreed on the principal terms of the settlement in September 2020, but this matter has been outside of our control. The alternative to the current agreed (in principle) settlement would be hugely detrimental to the secured bank creditors, nonetheless. We have a high degree of confidence that we will execute a settlement agreement and will be announced as soon as it is completed.

As of the end of August 2021, DEV had shipped three cargoes totalling approximately 143,000 wet tonnes of 58% iron ore. DEV is also contracted to carry out logistical and shipping activities for third parties who have stockpiles held at DEV’s port, which it has been doing since it completed its third shipment in May of this year. These third-party stockpiles are separate from the 1.25 million tonnes of 58% iron ore (+/- 10%) owned by DEV. At this point, DEV intends to continue to carry out these shipping activities for these third parties. This is because current shipping rates have increased dramatically (US$80–90 per tonne), which is reducing the profitability of shipping DEV’s material. We believe that these rates should normalise over the medium term; therefore, the shipping of DEV’s material will recommence at a later stage.

The first portion of the net revenues has been used to pay historic small and employee creditors. Approximately US$6 million of the net revenues will be used to begin recommissioning studies on the Amapa Project and to start maintenance and monitoring of the current tailing dam facilities. The remaining net revenues will provide working capital for the operations and will be used as payment against the outstanding amount due to the secured bank creditors.

After the period end, DEV was permitted to export a further US$10 million (after the deductions of all logistical, regulatory, shipping and sales costs) of iron ore from its stockpiles situated at its port in Santana, Amapa, Brazil. This authority is in addition to the first permission granted to DEV on 10 February 2021, in which it was permitted to ship an initial US$10 million (net of costs) of iron ore.

Work on the started earlier in the year on the Pre-feasibility Study (‘PFS’). DEV has appointed internationally accredited engineering and consulting firms to carry out the engineering and conditioning study on the beneficiation and processing plant. These firms will also review the power supply options for the mine and plant, particularly the possibility of connecting to the grid network, enabling the mine and the plant to be predominantly powered by low-cost renewable energy. In addition, PFS work has started on the railway with the inspection of some 193km of rail and associated infrastructure. Both of these studies, once complete, will form part of the PFS. In the coming months, we expect DEV to appoint a consulting and engineering firm to start work on the port studies and conduct a geotechnical investigation of the mine.

As previously announced in May of this year, DEV began tailing dam maintenance. DEV has now employed a civil engineer and two geotechnical consulting firms to advance the work programme, including monitoring, geotechnical stability testing and statutory reporting. The end goal is to ensure that the current dams will be suitable for future operations amid Brazil’s more stringent regulatory environment.

In addition to the PFS work, DEV has worked with Companhia Docas de Santana (‘CDSA’) to increase loading capacity at the public port. Together with CDSA, DEV has established and tested a process at CDSA’s port in Santana for loading a 45,000-tonne vessel with iron ore at Pier Two from the berth side. This operation was the first of its kind and will allow shipment of the DEV stockpile at a faster rate if required.

Lithium Technologies Pty Ltd and Lithium Suppliers Pty Ltd (‘LT’ and ‘LS’)

Cadence owns 25.85% of LT and LS, which owns or has applied for three prospective hard rock lithium assets in Australia and six exploration applications in Argentina.

With the increase in lithium compound pricing, we have seen renewed interest in hard rock lithium projects in Australia. Our assets are prospective for pegmatites and especially our Litchfield exploration licence, which is adjacent to Core Lithium’s Finniss Project. A feasibility study was completed on the Finniss Project, which shows a pre-tax net present value of AU$384 million.

Given the progress being made at the Finniss Project, we will be reviewing the targeting and fieldwork studies carried out in 2019 to determine if it is worth pursuing further exploration in our joint venture areas.

Private Investments (Passive)

Our two passive private investments consist of our 30% equity stake in five lithium concessions that form part of the Sonora Lithium Project and our 30% interest in three mining leases, six exploration licences and two general-purpose licences that form part of the Yangibana Rare Earth Project. Our joint venture partners for these assets are Bacanora Lithium and Hastings Technology Metals, respectively. Further details on the Sonora Lithium and Yangibana Rare Earth Projects can be found here and here, respectively.

Although Hastings Technology Minerals has progressed the development of the Yangibana Rare Earth project, most of this has been in relation to its wholly owned assets, with the only a change being reassessment of our joint venture mineral resources and reserves occurring in July 2021. There was no material difference in the recalculation of our portion of the resource and reserves; an updated summary can be found on our website here.

In May 2021, Bacanora Lithium and Ganfeng International Trading (Shanghai) Limited (‘Ganfeng’) entered into an agreement regarding the terms of a possible cash offer by Ganfeng for the entire issued share capital of Bacanora Lithium, other than that which it already owns, for 67.5 pence per Bacanora Lithium share (the ‘Possible Offer’). The preconditions to the Possible Offer are progressing, with the latest update provided here on 29 July 2021. The Possible Offer remains subject to certain other preconditions, including the Due Diligence Precondition. The satisfaction or waiver of the Due Diligence Precondition is at the sole discretion of Ganfeng’ s board.

As far as the Company is aware, the Possible Offer has no direct effect on our joint ventures. Should the cash offer be successful, it will be highly encouraging for the development of the project, given Ganfeng’s involvement in the development of the asset to date, their extensive experience in the lithium market and the fact that their holding company is the world’s third-largest (and China’s largest) lithium compounds producer.

Public Equity

The public equity investment segment includes both active and passive investments as part of our trading portfolio. The trading portfolio consists of investments in listed mining entities that the board believes possess attractive underlying assets. The focus is to invest in mining companies that are significantly undervalued by the market and where there is substantial upside potential through exploration success and/or the development of mining projects for commercial production. Ultimately, the aim is to make capital gains in the short to medium term. Investments are considered individually based on various criteria and are typically traded on the TSX, ASX, AIM or LSE.

During the period, our public equity investments generated an unrealised gain of £3.12 million and a realised gain of £0.42 million. The majority of these profits were derived from the sale of European Metals Holdings shares.

As of 30 June 2021, our public equity stakes consisted of the following:

Company Listing Value £’000 Type of Investment
European Metals Holdings Limited (ASX & AIM: EMH) (NASDAQ: EMHXY) 14,180 Active
MacArthur Minerals Limited (ASX: MIO) (TSX-V: MMS) 327 Passive
Celsius Resources (ASX: CLA) 103 Passive
Eagle Mountain Mining Limited (ASX: EM2) 153 Passive
Charger Metals NL (ASX: CHR) 109 Passive
Miscellaneous Various 6 Passive
Total   14,878  

European Metals Holdings Limited (‘European Metals’)

Cadence has held an investment in European Metals since June 2015. As of the period end, Cadence held approximately 9.7% of the Cinovec deposit in the Czech Republic through a direct holding in the share capital of European Metals that owns 100% of the exploration rights to the Cinovec lithium/tin deposit.

Cinovec hosts a globally significant hard rock lithium deposit with a total Indicated Mineral Resource of 372.4Mt at 0.45% Li2O and 0.04% Sn, and an Inferred Mineral Resource of 323.5Mt at 0.39% Li2O and 0.04% Sn, containing a combined 7.18 million tonnes of lithium carbonate equivalent and 263kt of tin (as reported on 28 November 2017). An initial Probable Ore Reserve of 34.5Mt at 0.65% Li2O and 0.09% Sn (as reported on 4 July 2017) had been declared to cover the first 20 years of mining. A projected output of 22,500tpa of lithium carbonate was reported on 11 July 2018.

The project has been significantly de-risked and is moving towards a final investment decision. European Metals has continued to progress the development of the assets across all the critical areas of the project. This includes further resource drilling to upgrade areas into measured resources and the completion of the locked cycle testing, which further supports the project’s credentials to produce battery-grade lithium carbonate and convert it to lithium hydroxide.

Trading Portfolio Public Equity (Passive)

Cadence’s passive investments are typically direct purchases of listed mining equities but may include other investment structures. The aim is to make capital gains in the short to medium term. Investments are considered individually based on a variety of criteria. Investments are typically traded on the TSX, ASX, AIM or LSE. During the period, we invested in a broader range of publicly listed investments and retained our stake in MacArthur Minerals Limited. Our trading portfolio generated a realised gain of £0.02 million over the period. A summary of our holdings is detailed in the table above.

Given that none of our trading portfolio investments represent more than 10% of our net assets and are below the relevant reporting thresholds in the applicable jurisdiction, we have determined that going forward, we will not republish regulatory announcements associated with these investments unless, of course, they become material. We will report on the performance of the trading portfolio investments via our annual and interim financial statements.

Financial Results

During the period, the Company made a profit before taxation of £2.84 million (six months ended 30 June 2020: loss of £1.40 million, the year ended 31 December 2020: profit of £7.82 million). There was a weighted basic profit per share of 1.914p (six months ended 30 June 2020: loss of 1.521p, the year ended 31 December 2020: profit of 6.705p).

The total assets of the Company increased from £22.61 million as of 31 December 2020 to £25.37 million. Borrowings were reduced from £0.22 million at 31 December 2020 to zero at 30 June 2021.

During the period, our net cash outflow from operating activities was £1.15 million, and our net cash position increased by £0.78 million to £1.39 million.

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

For further information:

Cadence Minerals plc +44 (0) 7879 584153
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Joint Broker) +44 (0) 207 220 1666
James Joyce  
Darshan Patel  
   
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 2021

Notes Unaudited Period ended 30 June 2021 Unaudited Period ended 30 June 2020 (restated) Audited Year ended 31 December 2020
£’000 £’000 £’000
Income
Unrealised profit/(loss) on financial investments 3,116 (383) 10,252
Realised profit/(loss) on financial investments 423 (34) 65
Other income 54
3,539 (417) 10,371
Share based payments (197) (57)
Other administrative expenses (505) (599) (1,379)
Total administrative expenses (702) (599) (1,436)
Operating profit/(loss) 2,837 (1,016) 8,935
Foreign exchange gains/(losses) (21) (181) (820)
Finance income 29 6
Finance cost (4) (199) (298)
Profit/(loss) before taxation 2,841 (1,396) 7,823
           
Taxation
Profit/(loss) attributable to the equity holders of the Company   2,841 (1,396) 7,823
Total comprehensive profit/(loss) for the Period, attributable to the equity holders of the Company 2,841 (1,396) 7,823
Loss per share
Basic (pence per share) 3 1.914 (1.521) 6.705
Diluted (pence per share) 3 1.814 n/a 6.609

CADENCE MINERALS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2021

Share capital Share premium account Share-based payment reserve Retained earnings Total equity
£’000 £’000 £’000 £’000 £’000
Balance at 1 January 2020 (restated) 1,471 30,357 1,383 (22,225) 10,986
Transfer on lapse of warrants (203) 203
Issue of share capital 238 1,471 1,709
Costs of share issue (81) (81)
Transactions with owners 238 1,390 (203) 203 1,628
Loss for the Period (1,396) (1,396)
Total comprehensive loss for the Period (1,396) (1,396)
Balance at 30 June 2020 (unaudited and restated) 1,709 31,747 1,180 (23,418) 11,218
Share based payments 57 57
Transfer on lapse of warrants (1,166) 1,166
Transfer on exercise of warrants (32) 32
Issue of share capital 187 1,522 1,709
Costs of share issue (110) (110)
Transactions with owners 187 1,412 (1,141) 1,198 1,656
Profit for the Period 9,219 9,219
Total comprehensive loss for the Period 9,219 9,219
Balance at 31 December 2020 1,896 33,159 39 (13,001) 22,093
Share based payments 197 197
Transfer on exercise of warrants (9) 9
Issue of share capital 7 50 57
Costs of share issue (1) (1)
Transactions with owners 7 49 188 9 253
Profit for the Period 2,841 2,841
Total comprehensive loss for the Period 2,841 2,841
Balance at 30 June 2020 (unaudited) 1,903 33,208 227 (10,151) 25,187

CADENCE MINERALS PLC

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

Unaudited Unaudited Audited
 30 June 2021  30 June 2020 (restated)  31 December 2020
Assets Notes £’000 £’000 £’000
Non-current
Financial Assets 3,203 2,837 2,885
Investment in associate
3,203 2,837 2,885
Current assets
Trade and other receivables 5,901 6,033 5,365
Financial Assets 14,878 4,222 13,761
Cash and cash equivalents 1,387 362 596
Total current assets 22,166 10,617 19,722
Total assets 25,369 13,454 22,607
EQUITY AND LIABILITIES
Current liabilities
Trade and other payables 182 158 295
Borrowings 2,078 219
Total current liabilities and total liabilities 182 2,236 514
Equity
Share capital 4 1,903 1,709 1,896
Share premium 33,208 31,747 33,159
Share based payment reserve 227 1,180 39
Retained earnings (10,151) (23,418) (13,001)
Total equity and liabilities
to owners of the Company 25,187 11,218 22,093
Total equity and liabilities 25,369 13,454 22,607

 

CADENCE MINERALS PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD 30 JUNE 2021

Unaudited Period ended Unaudited Period ended Audited Year ended
30 June 2021 30 June 2020 (restated)  31 December 2020
£’000 £’000 £’000
Cash flows from operating activities
Operating profit/(loss) 2,837 (1,016) 8,935
Net realised/unrealised (profit)/loss on financial investments (3,539) 417 (10,317)
Equity settled share-based payments 197 57
(Increase)/decrease in trade and other receivables (536) 111 32
(Decrease) in trade and other payables (113) (185) (68)
Net cash outflow from operating activities (1,154) (673) (1,361)
Taxation
Cash flows from investing activities
Payments for current financial investments (473) (50)
Receipts on sale of current investments 2,895 806 2,052
Payments for non-current financial investments (318) (624) (645)
Net cash inflow from investing activities 2,104 182 1,357
Cash flows from financing activities
Proceeds from issue of share capital 57 1,295 2,723
Share issue costs (1) (81) (191)
Net loan repayments (219) (643) (2,120)
Finance cost (3) (199) (292)
Net cash (outflow)/inflow from financing activities (166) 372 120
Net increase/(decrease) in cash and cash equivalents 784 (119) 116
Foreign exchange movements on cash and cash equivalents 7 (1)
Cash and cash equivalents at beginning of Period 596 481 481
Cash and cash equivalents at end of Period 1,387 362 596

 

NOTES TO THE INTERIM REPORT

FOR THE PERIOD ENDED 30 JUNE 2021

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 2020 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 2020 financial statements, which are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (adopted IFRSs).

PRIOR PERIOD RESTATEMENT

Cadence Minerals plc is an investment entity and its interests are held exclusively with a view to subsequent resale. Historically the Company adopted a consolidation policy which didn’t reflect the nature, purpose and cashflows of the entity. This policy has been amended and the periods prior to 31 December 2020 have been restated in recognition of the change in accounting policy in line with IAS 8.

All investments preciously wrongly classified have been reclassified as Financial Assets held at Fair Value through Profit and Loss (“FVPTL”). The prior year accounts have been restated as a result. Additionally, deposits have been reclassified from cash and cash equivalent to other debtors as it is not considered to be readily available. Full details of the restatement are included in the financial statements for the year ended 31 December 2020.

GOING CONCERN

The Directors have prepared cash flow forecasts for the Period ending 30 September 2022. 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

The Company operates a single primary activity to invest in businesses so as to generate a return for the shareholders.

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 2021 30 June 2020 (restated) 31 December 2020
£’000 £’000 £’000
Profit/(loss) on ordinary activities after tax (£’000) 2,841 (1,396) 7,823
Weighted average number of shares for calculating basic profit/loss per share 148,420,359 91,777,913 116,675,272
Share options and warrants exercisable 8,198,405 n/a 1,698,405
Weighted average number of shares for calculating diluted profit per share 156,618,764 n/a 118,373,677
Basic profit/(loss) per share (pence) 1.914 (1.521) 6.705
Diluted profit per share (pence) 1.814 n/a 6.609

4 SHARE CAPITAL

Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December 2020
£’000 £’000 £’000
Allotted, issued and fully paid
173,619,050 deferred shares of 0.24p (30 June and 31 December 2020: 173,619,050) 417 417 417
148,649,098 ordinary shares of 1p (30 June 2020 129,264,891, 31 December 2020: 147,949,098) 1,486 1,292 1,479
1,903 1,709 1,896

 

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