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Cadence Minerals #KDNC – Project Updates, Corporate Update and Company Presentation and Q&A

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to provide a series of project updates, and details of a new presentation and Q&A session.

Amapa Project

On 29 December 2021, Cadence announced the execution of the binding settlement agreement with the secured bank creditors, which allows us to vest our 20% interest in the large-scale Amapa iron ore mine, beneficiation plant, railway and private port (“Amapa Project”, “Amapa”).

We are pleased to announce that the completion and filing of the required contractual and regulatory documentation is proceeding as planned and we currently expect to finalise this in the first two weeks of next month.

Cadence has already begun work on the next investment phase to earn an additional 7% of Amapa for US$3.5 million. These funds will be primarily used to progress the pre-feasibility studies on the asset.

The pre-feasibility study (“PFS”) is progressing as expected, with the consulting engineers for the mine operations, ore reserve estimation, metallurgy, processing and shipping identified and in the process of being appointed. The rail logistic study has been completed in draft form, and is being reviewed.

In addition, to supplement the technical team at the Amapa, Tony Cau has been appointed as the pre-feasibility project director. Tony is a Civil Engineer with 40 years of global experience in the metals processing and engineering industry. Tony has worked for internationally recognised consulting and operational firms, including SNC-Lavalin, Bateman Engineering, BHP Billiton and Ausenco.

Litchfield and Picasso Projects

On 29 September 2021, Cadence announced that Castillo Copper (ASX/LON: CCZ) (“Castillo”) had entered into a 90-day option agreement with Lithium Technologies Pty Ltd (“LT”) and Lithium Supplies Pty Ltd (“LS”) in which Cadence owns a 31% shareholding, to acquire the Litchfield and Picasso Lithium Projects in the Northern Territory (NT) and Western Australia (WA) respectively.

LT and LS have informed us that the board of CCZ and LT & LS have mutually agreed to unwind the Option Agreement. As part of the break agreement terms, the A$50,000 deposit has been returned to CCZ.

Cadence CEO, Kiran Morzaria, commented: “On behalf of the board, I am pleased to advise shareholders that the filing of the contractual and regulatory documentation pertaining to the Amapa bank settlement agreement is proceeding as planned. Work has already started on the next investment phase to take Cadence up to 27% ownership of Amapa.

“I would also like to take this opportunity to welcome Tony Cau to the Amapa Project. Tony’s experience will be invaluable to us as Amapa undergoes recommissioning, and he joins the asset at an exciting phase of its development.”

“In regard to the Litchfield and Picasso option with Castillo, given the recent increases in lithium compound pricing to over US$40,000 per tonne of battery grade lithium carbonate, and the pending analysis of the assay results, we see the unwinding of this option agreement as an opportunity for Cadence to extract a higher valuation for these prospective assets”

Presentation and Q&A Session

Further to the announcement on the 5 January 2020, the online presentation and Q&A session is available here.

In addition, an updated PowerPoint presentation is available on the Company’ website, https://www.cadenceminerals.com/

Share Incentive Vesting

On the 2 November 2020, the Company announced that, under the share incentive plan established in September 2014, it had conditionally granted up to 240,000 Ordinary Shares to each of the directors. These share awards were conditional on meeting performance conditions during the award period (“2021 SIP Awards”). 2021 SIP Awards would be transferred from the Employee Benefit Trust (“EBT”), with no New Ordinary Shares being issued to satisfy the 2021 SIP Awards.

The award period ran from November 2020 to December 2021 (“Award Period”). The 2021 SIP Awards were subject to the board achieving performance conditions which were in line with market practice. One of the conditions was met by the end of 2021 entitling each director to be awarded 80,000 shares from EBT. With this award two of the three performance conditions were met during the period and no further awards will be made in relation 2021 SIP Awards. Once the shares have been transferred from the EBT to the board the Company will make a Director / PDMR disclosure.

 

– 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.

Vox Markets – Cadence CEO Kiran Morzaria discusses a big milestone achievement at the Amapa Iron Ore Project

Kiran Morzaria, CEO of Cadence Minerals #KDNC discusses a big milestone achievement at the Amapa Iron Ore Project

He talks about the execution of the settlement agreement and vesting of Cadence Minerals’ initial $2.5m for 20% of the Amapa Iron Ore Project.

UK Investor Magazine – Cadence Minerals: A Small Company making a Big Difference in Amapa, Brazil

From UK Investor Magazine

By Alan Green

On December 29, Cadence Minerals (AIM: KDNC), a mining investment company listed in London, announced that it had completed all the preconditions to invest into and acquire an initial 20% of the integrated Amapa iron mine, railway and port in North Eastern Brazil.

When we talked to Cadence CEO, Kiran Morzaria, via zoom on Christmas Eve just after the settlement agreement had been signed, he was understandably in good spirits.  His home office is dominated by two framed pictures, one of the head gear at a mine and the second of the three miners drilling a narrow-vein ore body. Kiran relates that these pictures are from a mine that he helped restart and rehabilitate in 2008, and which remains in production, further extending its 100-year history. Morzaria relates the story:

“These images remind me of two key things; the first is that the right asset, proper jurisdiction, and right people make all the difference. The second is that however hard I am working here, there others working in far tougher conditions, so the least I can do is put in that extra mile and ensure we can move the asset forward for all our stakeholders.”

– Subscribe –

There is no doubt that the team involved in the Amapa transaction have put in the hard yards. The process started back in September 2018, when Cadence partnered with commodity trading firm Indo Sino to form a joint venture. Cadence and Indo Sino then engaged with thelocal authorities and commercial courts to acquire Amapa mine owner in administration, DEV Mineração S.A.

A plan was put forward by Cadence to bring the former Anglo American owned Amapa mine,railway and wholly owned port at Santana (complete with 1.39 Mt of iron ore in three stockpiles) out of administration and ultimately back into production. Naturally the process came with some unique challenges. Morzaria explains:

“The judicial restructuring plan was a tough process. Not only did it set some key legal precedents, it also faced challenges from competing investors. This delayed the creditors meeting by one week, and yet despite this, we got over 90% of the creditors, by value to approve our restructuring plan.”

The history of the Amapa iron ore mine goes back to its discovery and ownership by a Brazilian conglomerate, which it then packaged with the massive 6 billion tonne Minas-Rio iron ore deposit and sold on to Anglo American for US$5.5 billion. For Anglo, Amapa was a relatively small transaction, and was certainly not part of the company’s long term strategic focus and plan. As a result, Amapa was sold to Brazilian company Zamin Ferrous in 2013, but during the finalisation of this sale, the company’s wholly owned port suffered a landslide which curtailed exports. Zamin Ferrous then negotiated a lower price, but the absence of a port prevented any meaningful product export and consequently DEV went into administration.

Before its sale in 2013, Anglo American valued its 70% stake in Amapá at US$866 million (100% US$1.2 billion). Anglo impaired the asset in its 2012 Annual Accounts to US$462 million (100% US$660 million).

Given its history, to most smaller listed companies, the challenge of bringing Amapa back to life would in most cases have represented a bridge too far. However, Cadence saw an opportunity, as outlined by Morzaria:

“Once we understood the legal process in Brazil, we saw an opportunity for significant upside for our shareholders. The not inconsiderable technical and existential risks typically associated with developing a mineral resource asset were largely mitigated. The mineral resource was auditable, the mining and processing technology are established, the product mix is well known, and there is a well-trodden path to obtain the required operating licenses, with several key licenses being granted before our investment.”

“Moreover, and critically, although the asset is not a large one in terms of global production, it is very significant for the state of Amapa. Our estimates suggest that once we reach our production targets, it will represent some 3.5% of the state GDP and could contribute some 4,200 jobs to the local and national economy. These facts helped to focus support at local and governmental levels and ensured our efforts didn’t become ensnared in in red tape. A government working committee has also been set up to work with us to troubleshoot any critical issues along our path to production.”

The investment proposition to bring Amapa out of administration sees Cadence acquire a 27% interest by investing US$6 million over two stages in the JV company. The first stage is for20% 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$3.5million. The funds for the first stage of investment are currently held in a judicial trust account of the commercial court of Sao Paulo.The agreement also gives Cadence a first right of refusal to increase its stake to 49%.

As the various pre-conditions set out by the commercial court of Sao Paulo were met, in 2020, DEV received permission to start shipping the iron ore stockpiled at Santana port, which immediately started generating cash. By the end of August 2021, DEV had shipped three cargoes of approximately 143,000 wet tonnes of iron ore. The net proceeds from shipment went to pay labour and small creditors, while also providing funds to invest into the recommissioning of the assets, the upgrading of the Mineral Resource Estimate and commencement of the pre-feasibility Study.

Move forward to December 2021, and with  the preconditions set out by the courts met and satisfied, the final hurdle was to agree a settlement with the banks – no easy task giventhat the team were negotiating with different state owned and private banks, in two jurisdictions, with varying degrees of organizational complexity and internal compliance hurdles. Nonetheless,with Credit Committee approval announced in October 2021, the final settlement with the banks was agreed and signed in December, triggering the initial US $2.5 million investment and a 20% stake for Cadence in the Amapa project.

The final settlement is a remarkable achievement by any standards: in combination with the other unsecured creditors the settlement terms meant that DEV was now only paying 45 cents in the dollar.

After the completion of the feasibility study and project financing, the rehabilitation of the mine,railway and port is expected to take between one and half to two years, following which the mine plans to produce over 5 million tonnes of 65% iron ore. From an investor and shareholder perspective, the financials really highlight and put into perspective what Cadence has achieved here. Assuming that the targets are hit and a current 65% iron ore price (US$ 145 / tonne in Dec 2021) is achieved, gross revenues could be circa US$725 million per annum. With solid demand for iron ore showing little sign of slowing as we go into 2022, quite rightly Cadence shares should see a re rating as investors run the slide rule over the Amapa numbers.

While there is no doubt Amapa is a landmark achievement, the rest of the Cadence portfolio also continues to deliver impressive returns. Cornerstone stakes in projects such as the Cinovec Lithium and Tin Project via AIM listed European Metals Holdings (AIM: EMH) in the Czech republic generated a £3.54 million return in the first 6 months of the year, with pre- tax profits of £2.84 million.

In particular, Cinovec, owned by European Metals Holdings and Eastern European utility giant CEZ is set to become a major European and Global lithium supply hub to meet the boom in batteries and electric vehicles, with demand anticipated to grow exponentially in the coming years.

Cadence also has a range of other ‘passive’ investments, including several ASX listed lithium assets, plus joint ventures at the Yangibana Rare Earths project in Australia, the Sonora Lithium project in Mexico and a hard rock lithium exploration assets 2 km away from Core Lithium’s (ASX:CXO) mining projects in the Northern territories of Australia.

Despite this exceptionally impressive asset portfolio, along with other micro-cap investors and explorers, the sector malaise has seen Cadence shares drift during the second half of 2021, currently rating the company on a modest £32m market cap.

Nonetheless CEO Morzaria remains enthused by the opportunities he expects to materialise in 2022.

“Our shareholders have stuck with us over what has been a hugely frustrating period”

“The completion of the first phase at Amapa marks a huge achievement for everyone involved, and we are really excited about the possibilities in Brazil in 2022” 

A recent visit to Amapá left a deep impression on Morzaria, who reported back to the markets in a live interview from the port at Santana.

“I was delighted to see the rapid progress on the ground, driven by a highly motivated local management team and staff. The rate of reconstruction and recommissioning work already completed gives our board huge confidence in what can be achieved next year.”

There is no doubt that bringing Amapá back to life has in cycling parlance represented a Tour de Brazil equivalent for Cadence. Regardless, Morzaria and his team have now completed the mountain section, and with several stage victories, look set for a great team result as they transition from micro-cap explorer and investor to mid-tier iron ore producer. Solid Cadence!

Cadence Minerals #KDNC – Execution of Settlement Agreement and Vesting of Initial US$2.5m for 20% of the Amapa Iron Ore Project

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that it has entered into a binding settlement agreement (“Settlement Agreement”) with the secured bank creditors of DEV Mineração S.A. (“DEV”), the owner of the Amapa iron ore project in Brazil.

The execution of the Settlement Agreement represents the last major precondition for Cadence to vest its initial US$2.5m for 20% of the large-scale Amapa iron ore mine, beneficiation plant, railway and private port (“Amapa Project”, “Amapa”) . Anglo American, a previous owner  had  valued its 70% stake in the Amapa Project in [date]at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million).

Highlights:

  • Execution of the Settlement Agreement with the Secured Bank Creditors of the Amapa Project allows Cadence’s (20%) and Indo Sino’s (80%) joint venture to secure 100% ownership of the Amapa Project.
  • The restructuring of the secured and unsecured creditors achieved by this Settlement Agreement and the Judicial Restructuring Process (“JRP”) has more than halved registered creditors balances.
  • Cadence has already commenced its next stage of investment in the Amapa Project to increase its stake to 27%.
  • Pre-feasibilty studies are ongoing on the project

Next Steps

The parties to the agreement are now completing and filing the required contractual and regulatory documentation which will crystallise the Cadence and Indo Sino Trade Pte. Ltd. (“Indo Sino”) joint venture company’s 100% ownership of DEV and the Amapa Project.

Cadence has already begun work on the next investment phase to earn an additional 7% of Amapa for US$3.5 million. These funds will be primarily used to progress the pre-feasibility studies on the asset.

Details of the Settlement Agreement

Cadence alongside Indo Sino entered into a Settlement Agreement with DEV and the Secured Bank Creditors on 24 December 2021.

The original credit facility provided to DEV has a principle amount outstanding of US$135 million (“Credit Facility”). The Settlement Agreement settles all of the principle amount plus all interest, default interest, outstanding costs and fees (“Settlement Amount”). The Credit Facility is secured over all of DEV’s equity and assets.

As a result of the Settlement Agreement and the JRP approved in August 2019, the total principle amounts owed to the secured and unsecured creditors in classes I to IV of DEV have been reduced from  approximately US$231 million to approximately US$103 million or approximately 45% of the original value.

The Settlement Amount will be paid over two years from the effective date of the Settlement Agreement, and It is to be be satisfied by the net profits from the sale of DEV’s iron ore stockpiles. As agreed in the JRP in August 2019 the unsecured creditors will be paid from DEV’s free cash flow over a period of nine years.

Under the Settlement Agreement, DEV remains the obligor with the Secured Creditors having no recourse of repayment of the Settlement Amount to either Cadence or Indo Sino. The Settlement Agreement will remain secured over all of DEV’s equity and assets.

Cadence CEO, Kiran Morzaria, commented: “When Cadence first announced Heads of Terms for Amapa back in May 2019, we knew that while a tremendous amount of work lay ahead, the investment and terms, if secured would represent our greatest achievement to date as a mining investment company.”

“That we are at this point today is entirely due to the team at Cadence, Indo Sino and DEV sharing a common vision and working together to achieve it. I am proud that together we have overcome some considerable challenges, including the impact of COVID on the Amapa region, to reach this moment.”

“We have already embarked on Phase 2, where Cadence will vest an additional US$3.5m to take our holding to 27%. Given the rate of progessthat I saw on visiting Amapa in October, I have every confidence that the day when our newly recommissioned mine re-commences production will come, at which point the nascent value in the project will be realised for the benefit of all our investors and shareholders.”

 

Cadence Non-Executive Chairman, Andrew Suckling, commented; “This is indeed a momentous day for Cadence, Indo Sino, DEV, the Government of Amapa, the legal teams and bank committees and administrators who have worked tirelessly, COVID notwithstanding, to finalise the final and perhaps the most lengthy part of the judicial restructuring plan agreed back in 2019.”

“I would also like to put on record my heartfelt thanks to everyone involved in making this happen, and in particular to Kiran and the team for realising what is an absolutely transformational transaction for Cadence and its shareholders.”

“Having achieved what we set out to do, the work really starts in earnest. Bringing Amapa back to life has created a raft of new opportunities for the region and its community, with improved prospects for employment, health and education. The opportunity is simply huge: Amapa was once owned Anglo American, and we fully intend to restore the mine and infrastructure to its former glory, and more besides given that we intend to produce a higher quality product mix. Even now, the value of this transaction is only starting to register with the markets, something I truly believe will change dramatically in the coming years.”

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.

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 its 70% ownership in the Amapa Project of US$ 120 million (100% US$ 171 million) and US$ 54 million (100% US$ 77 million). Before its sale in 2012, Anglo American valued its 70% stake in the Amapa Project at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 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.

Cadence updated the Mineral Resource Estimate on 2 November 2020, increasing the MRE by 21%. The current MRE contains an Mineral Resource of 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.

Details of the Joint Venture Agreement

The agreement with our joint venture partner, Indo Sino Pty Ltd, 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 was conditional on several material preconditions, which as of the date of this announcement have been satisfied. 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.

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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.

Podcast- Cadence Minerals #KDNC CEO Kiran Morzaria talks to UK Investor Magazine

Cadence Minerals #KDNC CEO Kiran Morzaria talks to UK Investor Magazine and covers:

– Group investment strategy

– Flagship Amapa Iron Ore project

– Cinovec #Lithium project

– Sonora Lithium project

– Yangibana #RareEarths project

Unlocking value in Lithium, Rare Earth and Iron Ore assets with Cadence Minerals

Cadence Minerals #KDNC – Castillo Copper #CCZ Option to acquire Litchfield and Picasso Lithium Projects extended

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

Highlights

  • 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.

Option Extended: 

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.”

Overview

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.

References

1)     CCZ ASX Release – 29 September & 20 October 2021

2)     CXO ASX Release – 21 September 2021 (Annual Report)

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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 – Castillo Copper #CCZ field trip to the Picasso Lithium Project identifies circa 10km zone of pegmatites.

Further to the announcement of 27 October 2021, Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that Castillo Copper (ASX/LON: CCZ) (“Castillo”) has provided an update on the Picasso Lithium Project following the visit of its geology team who mapped and collected samples from the high-density corridor.

For the full Castillo announcement, please click link here.

Highlights

  • A circa 10km zone of pegmatite occurrences was confirmed in the north-eastern part of the tenure, which significantly exceeds government mapping; and
  • The observed pegmatites are potentially related to lithium mineralisation which enhances prospectivity of the tenure’s north-eastern quadrant
  • Due diligence for the Litchfield Lithium Project is progressing with the laboratory expected to return assays within 2-3 weeks

Field Trip Findings: 

Castillo’s geology team undertook considerable mapping across the Picasso Lithium Project, though much of the time was focused on the tenure’s north-east quadrant where the high-density pegmatite corridor is located. Encouragingly, a circa 10km zone of pegmatite occurrences was confirmed in the tenure’s north-east quadrant which is the best exposed part of the Picasso Lithium Project. Notably, the pegmatites potentially host lithium mineralisation though this is subject to further investigation.  There are several areas of outcropping basement where granite is the dominant rock type. Interestingly, there is potential to discover further pegmatites across the tenure as there is significant shallow sand cover. 

Simon Paull, Managing Director of Castillo Copper, commented“The geology team’s visit to the Picasso Lithium Project delivered encouraging news, confirming that a 10km zone of pegmatites is apparent in the tenure’s north-east quadrant. The Board’s preliminary conclusion, based on due diligence undertaken to date, is the Picasso Lithium Project is prospective for lithium mineralisation and delivers significant incremental exploration potential.”

Cadence CEO Kiran Morzaria added: “We are pleased to note the progress and initial conclusions announced today by Castillo following the field trip work undertaken at the Picasso Project. We look forward to further progress.” 

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 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.

– 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’ currentexpectations 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) competitiveadvantages 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 otherregulatory 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 beconsistent with such forward-looking statements

 

Cadence Minerals #KDNC -Port Concession Update, Amapa Project

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce the approval of the change of control request for the federal port concession owned by DEV Mineraço S.A.’s (“DEV”) (“Port Change of Control”).Alongside the reinstatement of the life of mine railway concession by the State of Amapa in December 2019, details of which can be found here. Both these approvals represent two essential regulatory requirements over the critical infrastructure to operate the integrated Amapa Iron Ore Mine (“Amapa Project”)

DEV, Cadence and Indo Sino Pte. Ltd. (“Indo Sino”) have been liaising with the Agencia Nacional De Transportes Aquaviarios (“ANTAQ”) to approve the Port   Change of Control. The federal port concession is one of the licenses required to operate DEV’s privatley owned port in Santana, Amapa. The approved Port Change of Control will occur once Cadence’s and Indo Sino’s joint venture company Pedra Branca Alliance Pte. Ltd. (“JV Co”) is the 99.9% owner of DEV. As part of the Port Change of Control, ANTAQ has agreed to cease the recommended abrogation of the port concession. In addition, DEV has agreed to pay the outstanding fines of approximately US$267,000 to ANTAQ, 30 days after our JV Co takes control of DEV.

DEV ownership will pass to the JV Co once DEV, Cadence and Indo Sino have executed the settlement agreement with the secured bank creditors. Further details of the settlement agreement can be found here .

This approval represents a significant step forward in the licensing process to bring the Amapa project back into production. DEV continues to progress the licensing workstream across the multiple regulatory authorities, and we will update our shareholders as this progresses.

Cadence CEO, Kiran Morzaria, commented: “The Port Concession marks another significant step along the road to bring the Amapa Project back to life. Licensing and permitting often represent a substantial risk in the development of mineral projects, but thanks to the efforts of the team at DEV and its advisors, we have successfully secured two key concessions critical to the operational success of the Amapa project.”

“On my recent Amapa site visit, I was delighted to see the rapid progress on the ground, driven by a highly motivated local management team and staff. I look forward to reporting further progress.”

About the Amapa Project

The Amapa Project commenced operations in December 2007, with the first iron ore concentrate product of 712 kt shipped in 2008.  In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapa Project 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 a Mineral Resource of 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, and since that time, 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 27% of a (JV Co.  On completion and registration of the settlement agreement with the bank creditors, the equity of 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%.

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’s consideration, 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, including the grant of key operating licences and the release of bank securities over the asset. Upon completing 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%. 

Upon completing the US$ 6 million investment, Cadence will have the right to appoint two members to a five-member board. The remaining three members will comprise 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.

Cadence Minerals #KDNC Castillo Copper #CCZ to undertake comprehensive site visit to test all known pegmatites at Picasso Lithium Project

Further to the announcements of 29 September 2021, 7 October 2021 and 20 October 2021 Cadence Minerals (AIM/AQX: KDNC;OTC: KDNCY) is pleased to announce that the Castillo Copper (ASX/LON: CCZ) (“Castillo”) geology team will undertake a field trip to the Picasso Lithium Project, near Norseman in Western Australia.

For the full Castillo announcement, please link here

This is a lithium rich region, as the Mt Marion and Bald Hill Mines are located within 120km to the north-west of the tenure. Moreover, the Picasso Lithium Project is proximal to LTR’s Buldania Project which has a JORC compliant resource at 14.9Mt @ 0.97% Li2O2.

Highlights

  • Geology team will visit the Picasso Lithium Project shortly to gather more geological evidence – over a wide area – to verify if known / newly discovered pegmatites host lithium mineralisation
  • The focus area is the high-density corridor that hosts most of the 69 government mapped pegmatites on the eastern boundary, which is coincident to historical lithium occurrences at surface, coupled with selected outcropping targets seen elsewhere across the tenure1
  • The scope for the field trip is comprehensive and includes undertaking a drone survey to identify new granite / pegmatites targets; visit and collect samples from prospective zones; determine potential for lithium mineralisation; and update geological maps
  • Once complete, the team should have ample evidence to finalise the due diligence as significant historical data has already been reviewed, while more than 30 rock-chip samples1are due to be received in coming weeks
  • The Picasso Lithium Project is proximal to Liontown Resources’ (ASX: LTR) Buldania Project2and is mostly situated on crown land, which makes access a relatively straight forward process

Castillo’s Managing Director Simon Paull commented: “With the global lithium market showing continued strength, the Board has decided to send a team to site to collect more data points to advance the case for the Picasso Lithium Project. Whilst there is compelling historical evidence already and surface assays pending, the Board is keen to fully map and test all potential targets for lithium mineralisation within the tenure to hasten closing out due diligence.”

Cadence CEO Kiran Morzaria added: “Further to the progress made by Castillo in regard to the due diligience at Litchfield, we are pleased that Castillo have also committed to send a geology team to fully assess the potential at the Picasso Lithium Project. We look forward to further progress.”

Field Trip – Picasso Lithium Project

Castillo’s geology team will visit the Picasso Lithium Project shortly to collect more evidence to ascertain if known and newly discovered pegmatites host lithium mineralisation. The main focus zone is on the eastern boundary which comprises the high-density, government mapped, pegmatite corridor that is coincident with known lithium surface occurrences.

In addition, the team expect to survey pegmatite outcropping along the western boundary which is more wide-spread and scattered. Overall, according to government mapped data, there are 69 known pegmatites within the tenure1.

Scope

The geology team have been set a broad scope to collect as much incremental evidence as feasible during the field trip to determine the extent lithium mineralisation is apparent within pegmatites across the tenure. The key tasks comprise:

  • Conducting a drone survey across a significant area of the tenure;
  • Identify new granite / pegmatites from the drone survey and note dimensions;
  • Visit newly identified granite / pegmatite locations, conduct geological mapping and identify underlying mineralisation; and
  • Collect as many rock-chip samples as possible from newly identified pegmatites >1m wide and record XRF readings, if any.

Once this exercise is complete, the geology team should have sufficient evidence to finalise the due diligence. To date, significant historical data and geological reports have already been reviewed, while more than 30 rock-chips samples1 are due back from the laboratory in coming weeks.

Overview

Lithium Technologies Pty Ltd (“LT”) and Lithium Supplies Pty Ltd (“LS”), in which Cadence owns a 29% shareholding, each own 50% of Synergy Prospecting Pty Ltd (“Synergy”) and have granted , as announced on 29 September 2021, 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 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. Satellite imagery from Geological Survey of Western Australia. Available at: https://www.dmp.wa.gov.au/Geological-Survey/Geological-Survey-262.aspx and CCZ ASX Release – 4 October 2021
  2. LTR ASX Release – 2 August 2021 and CCZ ASX Release – 29 September 2021 & 4 October 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 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 – 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.

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