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Cadence Minerals #KDNC – Listing of Evergreen Lithium on the Australian Stock Exchange

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that Evergreen Lithium Limited (“Evergreen”) has filed its admission Prospectus with Australian Securities & Investments Commission and the Australian Stock Exchange (“ASX”). Cadence owns approximately 15.8 million Evergreen shares which are anticipated to represent 8.7% of the issued share capital of Evergreen on admission. Evergreen’s indicative timetable for admission is 10 March 2023.

Highlights:

  • Evergreen Lithium has filed a listing and offering prospectus with the ASX; the anticipated admission date is 10 March 2023.
  • On admission, Cadence will own approximately 8.7% of Evergreen, which at the offer price values Cadence’s equity stake at AS$ 3.96 million.
  • Evergreen intends to advance three hard rock lithium exploration projects in Australia.
  • The flagship Byone Lithium Project covers the north-eastern strike extent of the lithium-and tantalum endowed Bynoe Pegmatite field;
    • The project is adjacent to Core Lithium’s producing lithium mine.
    • Soil sampling on the project returned geochemical anomalies indicating lithium mineralisation.
    • Based on soil sampling alone an initial five target zones have been identified that contain lithium mineralisation.
  • The second prospect, Kenny Lithium, is located within the Dundas Mineral Field of Western Australia, close to Mt Dean and Mt Belches-Bald Hill pegmatite fields’
    • Initial field mapping on the project has confirmed the presence of substantial outcropping pegmatites
    • 10km zone of pegmatite outcropping has been confirmed in the North-Eastern section of the Kenny Lithium Project
    • Evergreen has recently completed a comprehensive auger program, drilling 1,731 holes. Evergreen expects the results to be available shortly after admission.

Cadence CEO Kiran Morzaria commented: “On behalf of the Cadence board, I am pleased that our investment into Lithium Technologies and Lithium Supplies have materialised into soon to be listed Evergeen and its Byone and Kenny lithium projects. Once Evergreen lists on the ASX market, it will add further value to Cadence’s rounded portfolio of listed lithium investment vehicles, which include European Metals Holdings (AIM: EMH) and our Sonora Lithium assets. Added to this, Cadence has exposure to the world class Yangibana rare earths project through it’s shareholding in Hastings Technology Metals (ASX: HAS) and of course our flagship Amapa iron ore project, the value of which was recently estimated with the publication of a pre-feasibility study, associated post tax NPV and maiden ore reserve declaration.” 

“Your board believes that considerable potential exists across our assets to deliver further progress as we move forward in 2023. I look forward to reporting back with further developments.”

Background to Cadence’s investment in Evergreen Lithium

Cadence Minerals received approximately 15.8 million shares in Evergreen in July 2022 when Cadence sold its 31.5% stake in Lithium Technologies and Lithium Supplies (“LT and LS”) to Evergreen as announced on 27 June 2022. This initial consideration was valued at AS$ 3.16 million (£1.81 million). A further AS$ 6.63 million (£3.80 million) shares in Evergreen are due to Cadence on the achievement of certain performance milestones by Evergreen. Further details of these milestones can be found in the Evergreen prospectus available here. Cadence’s shares may be subject to a 2-year escrow agreement as determined by the listing rules of the ASX.

As of 31 December 2021, the total carrying values of LT and LS in the Company’s balance sheet was approximately £803,000. Based on the anticipated admission price of Evergreen on the ASX, Cadence’s shares in Evergreen will be worth £2.27 million.

Evergreen Lithium

On acquiring LT and LS, Evergreen became the 100% owner of three exploration tenements. The Bynoe Lithium Project and Fortune Lithium Project (awaiting grant of exploration permit) are located in the Northern Territory, and the Kenny Lithium Project is located in Western Australia.

Evergreen is listing on the ASX to develop these projects further and raise up to AS$ 7 million via a share offer. Evergreen can advance its business model if the listing and the offer are successful.

Byone Lithium Project

The Bynoe Lithium Project is Evergreen’s flagship prospect. Evergreen’s primary focus is to explore and discover an economically viable lithium resource for development. The Bynoe Lithium Project is located south of Darwin in the Northern Territory, Australia. It covers the north-eastern strike extent of the lithium- and tantalum-endowed Bynoe Pegmatite Field.

The Bynoe Pegmatite Field is host to Core Lithium Ltd’s (ASX: CXO) (“Core Lithium” or “Core”) high-grade Finniss lithium deposit, which is adjacent to Core Lithium’s producing lithium mine. Core Lithium’s deposit is just 1.2km from the Bynoe Lithium Project. Soil sampling conducted on the Bynoe Lithium Project has returned geochemical anomalies that indicate the lithium mineralisation continues along the trend into the Company’s Bynoe Lithium Project. Based on the initial stages of soil sampling alone (which only covers approximately 10-20% of the Bynoe Lithium Project area, an initial five target zoneshave been identified that contain lithium mineralisation. The Bynoe Lithium Project covers an area of 231 km2, making Evergreen one of the largest tenement holders within the central Bynoe Pegmatite Field after Core Lithium.

In recent years, exploration activities within the Bynoe Field have been focused on the discovery of economic lithium mineralisation hosted in pegmatites, the most successful of which has been Evergreen’s neighbour, Core Lithium, which in a very short time frame, has delineated a JORC mineral resource of 18.9mt at 1.32% Li2O at its Finniss Project. Core Lithium has achieved excellent drilling intercepts at their BP33 prospect of 107 metres at 1.70% Li2O, located within 1km of the Bynoe Lithium Project and Core Lithium’s Finniss (BP33) mine.

After listing and completion of its capital raise, Evergreen intends to expand the geochemical soil sampling significantly. In addition, Evergreen recently completed an Ambient Noise Topography (“ANT”) Survey and is currently awaiting its geophysical interpretation. Core Lithium recently used ANT (refer to ASX announcement Core Lithium, 1 August 2022, “BP33 drilling delivers outstanding results”). Core noted the results were an “outstanding success” and showed “excellent correlation” with known pegmatite bodies that were already identified by drilling.

Once the baseline geochemical and geophysical data is collected, Evergreen plans to systematically drill test the anomalies, starting with the highest priority along strike from Core Lithium’s mineralised pegmatites.

Kenny Lithium Project

The Kenny Lithium Project is located within the Dundas Mineral Field of Western Australia and 50km East of Norseman in the Eastern Goldfields. It is close to the Mt Dean and Mt Belches-Bald Hill pegmatite fields, and there are multiple significant lithium discoveries located in close proximity to the Kenny Lithium Project

The Kenny Lithium Project covers an area of 210 km2, providing Evergreen with a large and prospective land holding within the Dundas mineral field.

The Kenny Lithium Project lies at the southern end of the Norseman-Wiluna Granite Greenstone Belt within the Archaean Yilgarn Craton. This is a well-known lithium-producing region/mineral field and is host to the significant Mount Marion, Bald Hill and Baldania mines, respectively, which are close to the Company’s Kenny Lithium Project.

Initial field mapping on the Kenny Lithium Project has confirmed the presence of substantial outcropping pegmatites, whereby an approximate 10km zone of pegmatite outcropping has been confirmed in the North-Eastern section of the Kenny Lithium Project, which significantly exceeds what has already been identified by the Government Survey of Western Australia (GSWA).

Evergreen’s goal is to explore and discover an economic lithium resource for subsequent development. As with the Company’s Bynoe Lithium Project, minimal geochemical work has been undertaken within the tenure; however, historical results have proven encouraging. Evergreen has recently completed a comprehensive auger program, drilling 1,731 holes. Evergreen expects the results to be available following the  listing. After that, the Company will design a drill program to drill test any targets identified to be prospective for lithium mineralisation and test the economic potential.

Fortune Lithium Project

The Fortune Lithium Project (EL31828) is located in the Northern Territory and is currently in its application phase and undergoing Native Title procedures. Evergreen Fortune Lithium Project is 784.71km² and is located 150km northeast of Alice Springs, in the Arunta region. The tenement itself has not been historically explored for lithium.

The Fortune Lithium Project lies in the Mesoproterozoic Aileron Province of the Arunta Region. The Arunta Region comprises a sequence of Proterozoic rocks known to host tin-tantalum-tungsten pegmatites. Historic pegmatite-hosted workings targeting tin-tantalum and mica are recorded in the vicinity of the Fortune Lithium Project area. There has been no exploration activity on the Fortune Lithium Project tenement specifically. The Fortune Lithium Project is currently in the application phase and is, therefore not granted tenure.

For further information contact:

 

Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
Darshan Patel

– Ends –

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-looking statements.

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (“MAR”). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Cadence Minerals #KDNC – Completion of Sale of Yangibana Joint Venture Interest to Hastings Technology Metals

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that it has completed the sale of its working interests in the Yangibana Rare Earths project (“Yangibana Project”) tenements to Hastings Technology Metals (ASX: HAS) (“Hastings”).

Highlights:

  • Cadence has received AS$9 million of new ordinary shares in ASX-listed Hastings for its 30% stake in various tenements of the Yangibana Rare Earth Project
  • Cadence has received some 2.45 million shares of Hastings, roughly 1.9% of the issued share capital of Hastings
  • Hastings is constructing the world’s next producer of neodymium and praseodymium concentrate, with maiden production forecast to start in 2024
  • NPV of project AS$ 1 billion, Hastings current market capitalisation AS$472 million (24/01/2023)

Further transaction details are available in Company’s RNS dated 23 June 2022 here. Cadence has sold its 30% working interest in the Yangibana Project tenements to the operator and owner of the remainder of the Yangibana Project, Hastings, for A$9 million (£5.1 million), which has been satisfied via the issue of 2,452,650 new ordinary shares in Hastings to Cadence. These shares represent approximately 1.9% of the current issued share capital of Hastings Technology and are subject to a 12-month voluntary escrow. As of 31 December 2021, the total carrying values of the tenements in the Company’s balance sheet was approximately £905,000. Based on the transaction announced, the initial profits on the sale of our interest is approximately £4.2 million.

About Hastings

Hastings is a well-managed Perth-based rare earths company primed to become the world’s next producer of neodymium and praseodymium concentrate (NdPr). NdPr are vital components used to manufacture permanent magnets used daily in advanced technology products ranging from electric vehicles to wind turbines, robotics, medical applications and digital devices.

Hastings’ flagship Yangibana project, in the Gascoyne region of Western Australia, contains a highly valued NdPr deposit with NdPr: TREO ratio of up to 52%. The site is permitted for long-life production and with offtake contracts signed and debt finance in an advanced stage. Construction has commenced, and Hastings is planning to start commissioning the beneficiation plant in late 2023, with the delivery of maiden production to key customers in 2024.

In February of last year, Hastings published a revised NPV calculation, which increased the NPV by 84% to AS$ 1 billion. Hastings also owns and operates the Brockman project, Australia’s largest heavy rare earths deposit, near Halls Creek in the Kimberley. For further information on the Company and its projects, visit www.hastingstechmetals.com

For further information contact:

 

Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
 

WH Ireland Limited (NOMAD & Broker)

 

+44 (0) 207 220 1666

James Joyce
Darshan Patel

– Ends –

 

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-looking statements.

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (“MAR”). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Cadence Minerals #KDNC – Interim Results for six months ended 30 June 2022

Cadence Minerals plc (AIM/AQX: KDNC) is pleased to announce its interim results for the six months ended 30 June 2022.

OVERVIEW

The Company’s goals for the six months ended 30 June 2022 were first to vest our 27% in the Amapa Iron Ore Project (“Amapa Project”), secondly to progress the development of Amapa and advance the Pre-Feasibility Study (“PFS”) and lastly to create capital growth in our passive private investments via a sale either in cash or a swap into liquid equity. I am pleased to report the Company was successful in all of the above goals.

The first goal was met in the first quarter of this year. After successfully reaching an agreement to vest its 20% at the end of December 2021, Cadence increased its stake in the Amapa Project to 27% in March 2022; the consideration for the additional 7% was US$3.5 million. The funding was used to achieve our second goal, which was to advance the PFS. Although PFS work commenced in 2021, the March investment fully funded the remainder of the PFS study. The current expectation is that in Q4, we will publish an updated Mineral Resource Estimate (“MRE), followed by an Ore Reserve Estimate (“ORE”) and, finally, the publication of the PFS.

The final goal was achieved via two asset sales; firstly, our 31.5% interests in Lithium Technology Pty Ltd and Lithium Supplies Pty Ltd (“LT and LS”) were sold to Evergreen Lithium and secondly, our 30% interest in licenses within the Yangibana Rare Earth Project (“Yangibana Project”) were sold to owner/operator Hastings Technology Metals. In both cases, Cadence agreed to vend these assets for equity in companies that are either listed or are expected to be listed.

Cadence has invested approximately £1.7 million in these assets, and our sale price into the equity of the two public companies was the equivalent of £5.5 million, representing a 321% cumulative return on our investments. The Yangibana sale is not reflected in the interim financial statements as it has not yet been completed. However, we expect that both the Yangibana Project transactions and the IPO of Evergreen Lithium will complete this year, hopefully further increasing our returns.

In contrast to these accomplishments, the macroeconomic environment has been generally negative. This has been dominated by the war in Ukraine and the devastating humanitarian consequences that have followed. The European war is the most serious crisis in decades, and food security and energy needs have emerged as significant concerns. We now live in a world of increased macro volatility, with central banks battling a problematic trade-off between soaring inflation and managing a fragile economic recovery in the aftermath of the COVID-19 pandemic.

Despite this challenging backdrop, the lithium and rare earth sectors have remained positive, with pricing in both products remaining robust. This demand continues to be driven by the electrification of our transport systems and the continued undersupply of feedstock. Despite some commentators suggesting otherwise, the oversupply of lithium is not imminent; we still see a market deficit going forward for the same structural reasons that we saw in 2018 when some of the same market commentators forecasted an oversupply of feedstock.

Within the iron ore market, we have seen the impacts of a global slowdown, with the 62% Fe Platts index dropping from US$125 per dry metric tonne (“dmt”) to circa US$ 100 / dmt. Both short and longer-term prospects for iron ore are driven by China, given the nation is the world’s biggest steel producer and currently buys about 70% of global seaborne iron ore. As policy support gains traction, we expect China to emerge as a source of stability for iron ore demand. This is contingent on Beijing implementing successful and timely stimulus measures, limited COVID lockdowns, and a shallow global slowdown that limits monetary tightening.

The overall negative macro environment weighed down on our public portfolio, with the AIM Basic Resources Index down some 30% over the period and European Metals Holdings (“EMH”), our largest public equity position, decreasing in value by some 47% during the reporting period. 

We are cautiously optimistic despite the macroeconomic headwinds. Recent indications point to a recovery in China’s growth momentum in the second half of the year, with cities reopening and government policy stimulus helping. In mined commodity markets, supply and demand are generally tight, and prices appear well supported. The transition to net zero carbon emissions will continue to open up investment opportunities in companies that serve the associated supply chains.

As outlined in our annual report and accounts, Cadence operates an investment strategy that includes 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 category below.

PRIVATE INVESTMENTS, ACTIVE

The Amapa Iron Ore Project, Brazil

Interest – 27%  at 30/06/2022 

The Amapa Project is a large-scale iron open pit ore mine with associated rail, port and beneficiation facilities that commenced operations in December 2007. Production increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012, respectively. Before its sale in 2012, Anglo American valued its 70% stake in the Amapa Project at US$462m (100% US $660m). 

In 2019 Cadence entered into a binding investment agreement to invest in and acquire up to 27% in the Amapa iron ore mine, beneficiation plant, railway and private port owned by 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 invested US$6 million over two stages in a joint venture company (“JV”). The first stage is for 20% of the JV, the consideration for which was US$2.5 million. The second stage was completed in March 2022 for a further 7% of the JV for a consideration of US$3.5 million.

During the reporting period, the two key operational priorities were: 

1.   Progressing the permitting pathway, including the regularisation of the mining concessions, tailing storage facilities and the environmental permits.

2.   Advancing the PFS, which commenced in 2021, and progressed in earnest once the second stage funding from Cadence vested.

At the time of writing, the PFS is progressing well with all the mineral processing and logistic studies completed and costed. The updated MRE and ORE are both due for completion in October 2022.

The PFS contemplates refurbishing and rehabilitating the existing port, rail and plant with modifications being made to the beneficiation plant to achieve a larger portion of 65% iron concentrate (4.9 Mt). The PFS is based on producing 5.3 Mt of iron ore concentrate per annum. The PFS, once complete, will outline more fully the development timelines and capital required to achieve the stated project aims. After the publication of an economic PFS, we expect DEV will seek to commission a Definitive Study (“DFS”). The DFS is required to seek project debt and equity finance, which will be sought once the DFS is complete.

PRIVATE INVESTMENTS, PASSIVE

Evergreen Lithium Limited

Interest – 13.16% at 30/06/2022

During the reporting period, Cadence and the shareholders of LT and LS completed the sale of 100% of LT and LS to Evergreen PTY Ltd (“Evergreen”). Evergreen is an unlisted public company in Australia that has been incorporated explicitly to acquire lithium assets. The acquisition of LT and LS is its first acquisition. Evergreen raised AS$ 6 million to pursue this strategy and now plans to list on the Australian Stock Exchange. 

The consideration for LT and LS is up to A$ 21.05 million (£12.79 million). Cadence had 31.5% of LT and LS and will receive up to A$ 6.63 million (£4.02 million). The initial consideration that has been paid is AS$3.16 million (£1.92 million) in Evergreen shares, or 15,830,136 shares at A$0.20 per share, representing 13.16% of Evergreen.

Subject to performance milestones being achieved (found here), an additional AS$3.47 million (£2.10 million) will be paid in Evergreen shares. If the performance targets are met, the total consideration for Cadence’s equity stake in LT and LS would be AS$6.63 million (£3.80 million). 

As a result of the acquisition, Evergreen, through its subsidiaries, are the holder of two exploration licenses in the Northern Territory, one granted and one in the application phase. LT and LS further hold seven exploration license applications in Argentina.

All of the licenses and applications target potential hard rock lithium deposits. The most significant of these is the Litchfield lithium prospect, which is contiguous to Core Lithium’s (ASX: CXO) strategic Finniss Lithium Project (JORC compliant ore reserves: 7.4Mt @ 1.3% Li2O). Evergreen has committed to spending at least A$4 million on the exploration of Litchfield during the three years post the completion of the sale.

Cadence’s total investment in the LT & LS was £0.81 million. The Company has received £1.92 million as an initial consideration and, subject to project milestones, will receive a further £2.1 million. This represents a 159% return on the initial consideration and a 395% return on the cumulative consideration.

Yangibana Project, Australia

Interest – 30% at 30/06/2022

The Yangibana Project is a significant Australian Rare Earths Project, containing substantial Neodymium and Praseodymium resources. The Yangibana Project currently covers approximately 650 square kilometres containing some 9 Mining Leases, 2 Prospecting Licenses and 19 Exploration Licenses. Cadence holds a 30% interest in 3 Mining Leases and 6 Exploration licenses. These tenements contain 0.70 million tonnes of Ore Reserves, which can increase the expected mine life of the Yangibana Project by approximately one year to a total of 16 years. 

In June 2022, Cadence entered into a binding agreement to sell its working interest in the leases to Hastings Technology Metals (ASX: HAS) (“Hastings”), the current owner and operator of the Yangibana Project.

The interests will be sold for A$9.0 million (£5.45 million) to be settled by the issue of fully paid ordinary shares in Hastings at a price to be determined based on 30 days VWAP before completion, which is set at six months from the date of signing of this agreement. 

Hastings has commenced site construction and is planning to begin commissioning the beneficiation plant in late 2023, delivering maiden production to key customers in 2024.

In February of this year, Hastings published a revised NPV calculation, which increased the NPV by 84% to AS$ 1 billion. Hastings’s current market capitalisation is circa A$ 415 million. Also, in February, the Australian Government’s Northern Australia Infrastructure Facility (NAIF) approved a $140 million loan facility to Hastings and Yangibana, making it the first Australian rare earth project to receive NAIF funding.

Cadence’s total investment in the Leases was £0.90 million. Subject to the completion of the sale, we will receive approximately £5.45 million in Hasting shares, representing a 502% return on our investment. 

Sonora Lithium Project, Mexico

Interest – 30% at 30/06/2022

Cadence holds an interest in the Sonora Lithium Project via a 30% stake in the joint venture interests in each of Mexalit S.A. de CV (“Mexalit”) and Megalit S.A. de CV (“Megalit”).

Mexalit forms part of the Sonora Lithium Project. The Sonora Lithium Project consists of ten contiguous concessions covering 97,389 hectares. Two of the concessions (La Ventana, La Ventana 1) are owned, as of the date, 100% by subsidiaries of Gangfeng Lithium Co., Ltd (“Gangfeng”). El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions are owned by Mexalit S.A. de C.V. (“Mexalit”), which is owned 70% by Gangfeng and 30% by Cadence.

The Sonora Project holds one of the world’s largest lithium resources and benefits from being both high-grade and scalable. The current lithium resources and reserves for the Sonora Lithium Project and the amounts attributable to Cadence are available on our website here:

https://www.cadenceminerals.com/projects/sonora-lithium-project/.

A feasibility study report was published in January 2018. The report estimated a pre-tax project net present value of US$1.253 billion at an 8% discount rate, an Internal Rate of Return of 26.1% and Life of Mine operating costs of US$3,910/t of lithium carbonate. It should be noted that under the published feasibility study, the concession owned by Mexalit will be mined starting in year 9 of the mine plan, ceasing at the end of the mine life in year 19.

In 2021, Mexican politicians from the MORENA party tabled a draught bill to reform Mexico’s energy sector, including statements that lithium would be included among the minerals considered strategic for the energy transition and that no new concessions for lithium exploitation by private companies could be granted. Subsequent to the year-end, the Mexican senate elevated lithium deposits to the category of “strategic minerals”, declaring lithium’s exploration, exploitation, and use as the state’s exclusive right. 

We are constantly examining possible legislative changes, and Gangfeng is ensuring that the mineral concessions remain legitimate. It is our current view that the Decree passed by the senate only impacts licenses, concessions, or contracts to be granted, NOT already those already granted, as is the case for the Sonora Lithium Project. Therefore, at this point, we do not believe there is a material impact on our joint venture areas.

PUBLIC EQUITY 

The public equity investment segment includes 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 loss of £5.26 million (6 months ended 30 June 2021: a profit of £3.12 million) and a realised gain of £1.11 million (6 months ended 30 June 2021: £0.42 million). The majority of these profits were derived from the sale of European Metals Holdings shares. The total return on investment for the Cadence equity portfolio as of 28 September 2022 was 407%, or £9.95 million. 

As of 30 June 2022, our public equity stakes consisted of the following:

 

Company

Business Summary

30-Jun-22

31-Dec-21

30-Jun-21

31-Dec-20

£,000

£,000

£,000

£,000

European Metals Holding Ltd

Lithium mine development

5,357

11,287

14,180

13,426

Charger Metals NL

Lithium exploration

196

342

109

Macarthur Minerals Ltd

Iron Ore mine development

103

181

327

329

Eagle Mountain Mining Ltd

Copper exploration

47

122

153

Mont-Royal Resources Ltd

Gold and Copper exploration

39

35

Celsius Resources Ltd

Gold and Copper exploration

103

Miscellaneous

Various

5

7

6

6

Total

5,747

11,974

14,878

13,761

 

FINANCIAL RESULTS: 

During the period, the Group made a loss before taxation of £5.05 million (6 months ended 30 June 2021: profit of £2.84 million, year ended 31 December 2021: loss of £0.14 million). There was a weighted basic loss per share of 3.136p (30 June 2021: profit 2.009p, 31 December 2021: loss 0.102p). During the second half of the year, the Directors expect the results to reflect the approximately £4.2m profit from the sale of the Group’s Yangibana Joint Venture Interest. 

The total assets of the Group decreased from £23.01 million at 31 December 2021 to £21.93 million. Of this amount, the decrease of £6.23 million represents the market value of our current investments at the period end, plus there was an increase in our non-current investments of £3.30m.

During the period our net cash outflow from operating activities was £1.65 million, gross proceeds of £4.9m were raised through the issue of new shares and our net cash position ended the period up £1.66 million at £1.99 million. 

Kiran Morzaria

Director

28 September 2022

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

For further information:

 

Cadence Minerals plc

+44 (0) 20 3582 6636

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

+44 (0) 20 7220 1666

James Joyce

Darshan Patel

Cadence Minerals #KDNC Agrees To Sell its Yangibana Joint Venture Interest to Hastings Technology Metals

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that it has entered into a binding agreement to sell its working interests in the Yangibana Rare Earths project (“Yangibana Project”) tenements to Hastings Technology Metals (ASX: HAS) (“Hastings”). Cadence’s 30% interest in tenements covers a small portion of Yangibana and potentially represents one year of the 16-year mine life.

Highlights: 

  • Cadence has agreed to sell its 30% working interest in the Yangibana Project tenements to the operator and owner of the remainder of the Yangibana Project, Hastings, for A$9 million (£5.1 million)
  • The sale is to be satisfied by the issue of fully paid ordinary Hastings shares
  • This transaction provides Cadence with equity exposure to 100% of the Yangibana Project via its equity holding in Hastings.
  • The NPV of the Yangibana Project is currently AS$ 1 billion

Background

The interests will be sold for A$9.0 million to be settled by the issue of fully paid ordinary shares in Hastings at a price to be determined based on 30 days VWAP before completion, which is set at six months from the date of signing of this agreement. The commercial terms are summarised below.

As a consequence of the acquisition, Cadence will become a shareholder of Hastings. Hastings is developing the Yangibana Project. The Yangibana Project is a significant Australian Rare Earths Project, containing substantial Neodymium and Praseodymium resources.

The Yangibana Project currently covers approximately 650 square kilometres containing some 9 Mining Leases, 2 Prospecting Licenses and 19 Exploration Licenses. Cadence holds a 30% interest in 3 Mining Leases and 6 Exploration licenses. These tenements contain 0.70 million tonnes of Ore Reserves, which can increase the expected mine life of the Yangibana Project by approximately one year to a total of 16 years.

Hastings has commence site construction and is planning to commence commissioning of the beneficiation plant in late 2023, with the delivery of maiden production to key customers in 2024.

In February of this year, Hastings published a revised NPV calculation, which increased the NPV by 84% to AS$ 1 billion. Hasting’s current market capitalisation is circa A$ 415 million. Also, in February, the Australian Government’s Northern Australia Infrastructure Facility (NAIF) approved a $140 million loan facility to Hastings and Yangibana, making it the first Australian rare earth project to receive NAIF funding. The Financial Times also commented on the story. The link can be found here: https://www.ft.com/content/552274c4-221a-49ac-91dd-562c51655e76

Cadence CEO Kiran Morzaria commented: “The sale of our 30% interest in a part of the Yangibana Rare Earths Project provides Cadence with an excellent return on its initial investment and equity exposure to the entire project. Yangibana’s importance as a key REE resource today cannot be overstated.”

We look forward to reporting on Hastings development and progress towards production as construction on the mine commences.”

Commercial Terms

The following represent the key binding commercial terms for Hastings to acquire the 30% working interest in certain tenements and general-purpose licences held by Cadence Minerals Plc through its subsidiary Mojito Resources Limited:

  • Consideration – A$9 million to be settled by the issue of fully paid ordinary shares in Hastings Technology Metals Ltd (herein referred to as “Consideration Shares”).
  • Issue price – equal to the volume-weighted average price (VWAP) of the Hastings shares in the 30 trading days before settlement.
  • Escrow – the Consideration Shares will be subject to a voluntary escrow for up to 12 months from issue
  • Conditions precedent limited to execution of documents to give effect to the binding term sheet, Hastings having issued and applied to the ASX for the quotation of the Considerations Shares and any necessary approvals being received.
  • Settlement to occur five days after conditions precedent have been met.
  • Conditions precedent to be completed within 180 days; otherwise, either party may terminate the binding term sheet.
  • General representations, warranties and indemnities for an agreement of this nature.

The net loss attributable to our 30% holdings in the tenements for 31 December 2021 is nil. As such, the net loss attributable to the Company is also nil. As of 31 December 2021, the total carrying values of the tenements in the Company’s balance sheet was approximately £905,000. Based on the transaction announced, the initial profits on the sale of our interest is approximately £4.2 million.

As outlined above, the Consideration Shares will be subject to a voluntary escrow of up to 12 months from issue. During that time, the price of Hastings public equity may vary and result in either higher or lower profitability. After the lapse of the escrow arrangement, Cadence will retain or dispose of these shares as per our investment strategy, which is available here.

Q&A with Vox Markets

CEO Kiran Morzaria will be recording an investor presentation and Q&A with Vox Markets, which will be released on Friday, 1 July 2022.

Shareholders and investors are invited to submit their questions to Katrina Perez at Vox Markets via her email at kperez@voxmarkets.co.uk.  The questions should arrive no later than 6 pm on  Wednesday, 29 June 2022. Any that arrive after the deadline will not be included in the Q&A.

– 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

 

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-looking statements.

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (“MAR”). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Cadence Minerals #KDNC – Hastings Technology Metals (ASX: HAS), Yangibana Project NPV8 Increases 84% to A$1 billion (post tax).

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to note that Hastings Technology Metals (ASX:HAS) (“Hastings”), Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia (“Yangibana” “Yangibana Project”), has announced significant progress on, and improved project economics for the Yangibana Project. The updated project economics, based on a Definitive Feasibility Study (DFS) completed by Hastings in 2017 and revised in late 2021, follows an extensive and comprehensive review period, extending over three years, which has sought to de-risk project execution, optimise the flowsheet and enhance project economics.

Highlights:

  • Post-tax Net Present Value8 (“NPV8”) increases by 84% to $1,012 million.
  • Post-tax Internal Rate of Return (“IRR”) of 26%.
  • Life of Mine pre-tax Free Operating Cashflow increases by 71% to $4,376 million.
  • Revised capital cost estimated at A$582 million (including contingency is $658 million)
  • Project is ‘shovel-ready’ following a comprehensive review and assessment of current inflationary pressures present in Western Australia.
  • Capital payback period forecast at 2.7 years from commencement of production.
  • Production of 3,400tpa of NdPr Oxides capable of supplying up to 8% of forecast global NdPr demand.
  • Discussions on funding options with suitable partners continue to progress.
  • $20 million early works program to deliver the core site infrastructure at Yangibana is well underway

Key to this process was validating the capex required to bring Yangibana into operation considering the current inflationary environment and tightening labour market in Western Australia.

Following this review period, the management team now have a high degree of confidence in the quantum of capital required and are proceeding to finalise funding arrangements for Yangibana ahead of proposed commencement of plant construction activities forecast to commence in H2 2022. The $20 million early works program to deliver the core site infrastructure at Yangibana is underway with plant and personnel achieving good progress to date.

The full HAS release can be found at: https://www.investi.com.au/api/announcements/has/000839dd-0cd.pdf

Hastings Technology Metals’ Executive Chairman Charles Lew commented: “Today is a significant milestone for the Hastings team that is the result of an extensive amount of work carried out over a number of years. The updated project economics tell a story of a world-class rare earths project that will be capable not only of delivering up to 8% of global NdPr demand for a period of at least 15 years but generate significant, long-term value for all shareholders.”

“The Hastings team has done a tremendous job since 2017 to optimise and de-risk the Yangibana project, both technically and commercially, to make it an even more compelling investment proposition. Since its discovery in 2014, we were always confident in the quality of the rare earths resource endowment at Yangibana. As it turned out, the steady progress we have made over the years has converged with a strong global rare earths magnet market underpinned by the global energy transition and electric mobility. As the updated project economics demonstrate, Yangibana will be a financially and operationally robust, long-life project.”

“We are well advanced on discussions with a range of funding partners (in addition to NAIF) and are now focused on finalising the appropriate capital structure that best positions Hastings for success in bringing Yangibana into production by 2024. This includes undertaking a corporate transaction or seeking a joint venture partner(s).”

Relevance to Cadence Minerals Holdings in the Yangibana Project:

Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the remaining 70% (“Hastings”). The current mining schedule indicates that the joint venture areas are scheduled to be mined in years 12 to 15 on the mine plan. Further details of our ownership the mineral resources and reserves on our jointly held leases can be found at:

https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/

 

– 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 – NAIF approves $140m loan for Hastings Technology Metals’ $HAS Yangibana Rare Earths Project

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to note that Hastings Technology Metals (ASX:HAS) (“Hastings”), Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia (“Yangibana” “Yangibana Project”), has announced that that it has received approvals for a significant portion of the debt package required to fund construction of the Yangibana Rare Earths Project, in the Gascoyne region of Western Australia.

Highlights:

  • Northern Australia Infrastructure Facility (NAIF) approves $140 million loan facility with 12½-year tenor, subject to pre-completion conditions.
  • NAIF loan is a critical component of the Yangibana Rare Earths Project funding strategy underpinning finalisation of remaining funding requirements.
  • Yangibana is the first Australian rare earths project to receive NAIF funding.
  • First drawdown expected to occur in early 2023, aligned to Yangibana funding schedule.
  • NAIF loan forms part of A$300-400 million of total debt financing required for Yangibana.
  • Yangibana early works construction and design for long-lead items underway in anticipation of plant construction commencing in September 2022 Quarter.
  • Hastings is fostering a lower carbon future and renewable energy solutions through the Yangibana rare earths project

The Federal Government’s Northern Australia Infrastructure Facility (NAIF) has agreed to supply a A$140 million, 12½-year tenor loan facility for the development of Yangibana. The loan has been approved by the NAIF Board and endorsed by the Federal Minister for Northern Australia, the Honourable David Littleproud. The NAIF loan forms part of the A$300-400 million of total debt funding required for Yangibana and is aligned with Australia’s Critical Minerals Strategy and the Western Australian Government’s Future Battery Industry Strategy.

The Yangibana project, which comprises a mine and beneficiation plant at the Yangibana site and a hydrometallurgical plant at the Ashburton North Strategic Industrial Area (ANSIA) near Onslow, will become Australia’s second rare earths producer and expands the country’s strategic capability in downstream processing of rare earths minerals.

The Federal Government’s commitment to Yangibana comes at a significant inflexion point for the global rare earths sector amid a drive by rare earths magnet-end users to secure responsible and reliable sources of supply.

The full HAS release can be found at: https://www.investi.com.au/api/announcements/has/92de7fbd-5d2.pdf

The Financial Times also commented on the story. The link can be found here:

https://www.ft.com/content/552274c4-221a-49ac-91dd-562c51655e76

Hastings Technology Metals’ Executive Chairman Charles Lew commented: “Hastings is delighted to have received the Federal Government’s support, through the Northern Australia Infrastructure Facility, for the Yangibana rare earths project. This is the Commonwealth’s first project financing package for the construction of a rare earth mine and production plant in Australia and supports the rapid development worldwide of decarbonisation technologies in e-mobility and energy. In view of the UN Climate Change Conference (COP26) held in November 2021, Hastings is proud to be at the forefront of this significant global transition to a lower carbon future and aims to be a part of the global efforts towards sustainability.”

“The commitment by NAIF will enable Hastings to finalise the funding requirements for Yangibana’s development and move into full-scale construction throughout 2022, with the objective of delivering first production by 2024. Yangibana is an amazing rare earths opportunity that will supply the world’s highest composition neodymium and praseodymium concentrate to Tier 1 customers in Europe and Asia.”

“This is an exciting time not just for Hastings but for Australia’s emerging rare earths sector. We look forward to finalising the funding arrangements that will enable the Hastings Board to make a final investment decision in the coming months.”

Relevance to Cadence Minerals Holdings in the Yangibana Project:

Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the remaining 70% (“Hastings”). The current mining schedule indicates that the joint venture areas are scheduled to be mined in years 12 to 15 on the mine plan. Further details of our ownership the mineral resources and reserves on our jointly held leases can be found at:

https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/

 

– 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 – Hastings Technology Metals (ASX: HAS) Yangibana Ore Sorting Testwork results in 26% Uplift in Mine Head Grade.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) notes that Hastings Technology Metals (ASX: HAS) (“Hastings”) has announced that ore sorting test work has confirmed its suitability within the beneficiation process in delivering early gangue mineral rejection and a significant upgrade of rare earths material prior to the higher-cost processing steps across the Yangibana Rare Earths Project (“Yangibana”), in Western Australia’s Gascoyne region.

The ore sorting test results confirmed that the total rare earth oxide (TREO) recovery through the ore sorter is a linear function, where the lower the head grade, the higher the mass rejection becomes. It is, therefore forecast, based on the average content of alumina and silica for all Yangibana deposits, that 24% of the proposed crusher feed will be rejected by the ore sorters as waste at the expense of only 4% TREO volumes across the life of mine schedule (“LOM”).

Highlights:

  • 26% upgrade to the life of mine total rare earths oxide (TREO) grade.
  • 96% overall TREO recoveries after ore sorting.
  • 24% upfront mass rejection of primary crusher feed, resulting in:
    • 24% reduction of beneficiation plant reagent consumption.
    • 24% reduction in required tailings storage facility size for the life of mine; and
    • effective mitigation of the risk of mining dilution.
  • Ore sorting test work continues to validate the positive impacts on the Yangibana process flowsheet:
    • Engineering development is progressing to incorporate the ore sorting circuit into the beneficiation process flowsheet.

The variability test work program was completed testing 12 samples from across the Yangibana deposits. The performance of the ore sorters is closely linked to head grade, resulting in LOM mass rejection of 24% with a corresponding increase in average grade of TREO content of 26%.

The full HAS release can be found at: https://www.investi.com.au/api/announcements/has/3bb7e431-691.pdf

Relevance to Cadence Minerals Holdings in the Yangibana Project:

Cadence is a 30% joint venture partner on 3 Mining Leases, 6 Exploration Licences of the Yangibana Project. Hastings is our 70% joint venture partner on these assets and owns 100% of the remaining portion of the Yangibana Project. Further detail on the asset and the resources and reserves on our joint venture lands can be found here

As stated in the Hastings announcement the effect of the results of the ore sorting test work is forecast to have a positive effect on the LOM. It is important to note, however, that currently a definitive feasibility study in November 2017, does not include Cadence’s joint venture interests and in addition Hastings current economic model does not include any costs or revenue ascribed to the 30% interest in the deposits held by Cadence.

Therefore, to assess the effect of the improvements announced by Hastings, we will have to await further updates which are specific to our joint venture areas. 

– 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
James Sinclair-Ford
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 – Update on Yangibana Rare Earth Project and Joint Venture Partner Funding to Accelerate Construction.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Hastings Technology Metals (ASX:HAS) (“Hastings”), Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia (“Yangibana” “Yangibana Project”), has received commitments to raise $100.7 million through an equity placement. The placement’s net proceeds will be used to advance development of the Yangibana Project in the Gascoyne region of Western Australia.

Relevance to Cadence Minerals Holdings in the Yangibana Project:

Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Project, Hastings holds owns 70% of these leases and licenses.

The definitive feasibility study published in 2017, modelled two production scenarios the second of which had included within it 808,000 tonnes of plant feed from one of our joint venture areas (Yangibana) in year 6. This production target and additional production target from the definitive feasibility study indicates that 11% of the plant feed will come from our joint venture area.

The funding announced by Hastings represents the large majority of the equity component required to commence the development of the Yangibana Project, which includes the mining and of our joint venture areas.

The economic model contemplated by Hastings assumes Cadence through its subsidiary will participate in the and mining of the deposits held 70% by Hastings and 30% by Cadence. Assuming there is a development of the mine by the joint venture a new Mining Joint Venture Agreement will need to be agreed and put in place to replace the existing joint venture documentation and regulate the arrangements between the participants for the mine development. No costs or revenue ascribed to 30% interest in the deposits held by Cadence were reported in the financial modelling published by Hastings.

Further details of our ownership the mineral resources and reserves on our jointly held leases can be found at:

https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/

Highlights:

  • Hastings has received commitments to raise $100.7 million (before costs) through a two-tranche placement priced at $0.19 per share.
  • Placement funds will be used to advance development of the world-class Yangibana Rare Earths Project.
  • Strong institutional demand reinforces confidence that Yangibana will become Australia’s next rare earths producer.
  • Upon settlement of both tranches of the Placement, the Company will have a cash balance of approximately $120 million (before costs).

As previously announced to the ASX, the equity component of the Yangibana Project’s capital cost is $124 million.

The full HAS release can be found at: https://investi.com.au/api/announcements/has/8a07d081-700.pdf

Cadence Minerals Yangibana Holding:

Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the remaining 70% (“Hastings”). Further details of our ownership of the mineral resources and reserves on our jointly held leases can be found at:

https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/

The current mine plan anticipates production to start from our joint venture area (Yangibana) in year 6. The production target and additional production target from the definitive feasibility study (November 2017) indicates that 11% of the plant feed will come from the joint venture area license of Yangibana.

Cadence CEO Kiran Morzaria commented: “We are delighted to see the strong financial support shown by institutional, sophisticated and professional investors in the Hastings placing. This development will accelerate project construction and provides a positive read-over into the value and future potential of two of the Cadence joint venture area of Yangibana and Yangibana North”

– 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
James Sinclair-Ford
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.

Cadence Minerals #KDNC – Hastings Technology Metals (ASX: HAS) – Yangibana Drilling Confirms Significant Mineralisation Extension Now Up To 8km Long.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Hastings Technology Metals (ASX:HAS) (“Hastings”), Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia (“Yangibana” “Yangibana Project”), has announced further significant results for the Simon’s Find deposit as part of the 2020 exploration drilling program for the Yangibana Rare Earths Project in Western Australia.

Cadence Minerals Yangibana Holding:

Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences, which form part of the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the remaining 70%. While the announcement today involves territory not covered by the JV license areas, the developments are nonetheless positive indicators for the future of the joint venture. Further details of our ownership the mineral resources and reserves on our jointly held leases can be found at:

https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/

The current mine plan anticipates production to start from our joint venture areas (Yangibana and Yangibana North) in year 6 and continue to the end of mine life (year 13). Further details can be found in the Hastings 2019 Annual Report.

Highlights:

  • Results from drilling at Simon’s Find confirm a major 2km long zone of economic mineralisation, significantly expanding the existing resource base across the Yangibana Rare Earths Project.
  • Simon’s Find and the recently announced Fraser’s North and South drill results form a continuous zone of economic mineralisation 4km long.
  • The Fraser’s – Simon’s Find – Bald Hill trend now forms an 8km-long economic mineralised corridor.
  • Simon’s Find results contain world-beating quantities of neodymium (Nd2O3) and praseodymium (Pr6O11) that, when combined, total 52% of the TREO (total rare earth oxides) values. These results are significantly higher than the 40-41% values recorded from the nearby Bald Hill and Frasers deposits.
  • High-grade and shallow intersections from Simon’s Find include:
    • 2m @ 2.78% TREO from 46m
    • 6m @ 1.20% TREO from 43m
      • including 4m @ 1.61% TREO
    • 4m @ 1.21% TREO from 46m
    • 15m @ 0.72% TREO from 37m
      • including 6m @ 1.11% TREO
    • 2m @ 1.38% TREO from 67m
    • 7m @ 0.89% TREO from 31m
      • including 2m @ 1.76% TREO
    • 3m @ 1.40% TREO from 11m
    • 6m @ 0.75% TREO from 39m
      • including 2m @ 1.51% TREO
    • 83 out of 96 holes (~86%) reported significant intercepts of grades

Simon’s Find – Major Mineralised Trend Defined

Hastings can now report that it has successfully delineated, as a minimum, approximately 2km of economic mineralisation, forming the Simon’s Find resource area through the completion of close-spaced reverse circulation (RC) drilling.

Recent drilling to target ironstone rocks hosting rare earths has returned consistent grades and widths of mineralisation over a 2km-long zone, which remains open along strike and down dip. Results have also confirmed that Simon’s Find includes exceptionally high quantities of neodymium and praseodymium, widely recognised as the two most important rare earths elements required over the next decades to satisfy global demand for electric vehicles, renewable energy projects and industrial automation.

From the results underlying this announcement for Simon’s Find, neodymium and praseodymium (together, “NdPr”) represent approximately 52% of the total rare earths content. This is at least 25% higher than existing results from the nearby Bald Hill and Frasers deposits, which have a NdPr:TREO ratio of approximately 40-41% of total rare earths.

A 40-41% ratio is widely acknowledged as world leading when compared to other known rare earths deposits, which typically report ratios in the 15-25% range. The 52% recorded at Simon’s Find confirms the special and unique geological properties of Yangibana and further underpins Hastings’ accelerated march to becoming Australia’s next rare earths producer.

These new results are expected to substantially add to the 20.86Mt mineral resource1 (see ASX announcement dated 25 February 2020) already confirmed at Yangibana, with a new mineral resource and mining reserve estimate expected to be completed over the coming months.

Simon’s Find is located in close proximity to the site of Yangibana’s proposed processing plant. The nature of Simon’s Find’s softer geological host rocks means this deposit is expected to play an important role during the production start-up phase of Yangibana.

Frasers – Simon’s Find Trend

Drill results released during the year have confirmed that Simon’s Find forms the northern portion of a defined and continuous 4km-long zone of economic mineralisation when including the recently released Fraser’s South and Fraser’s North drilling results.

Frasers – Simon’s Find – Bald Hill Trend

Hastings has now defined a single, largely coherent zone of mineralisation commencing at Fraser’s South and finishing at Bald Hill (the largest of Yangibana’s rare earths deposits) that is approximately 8km in length.

Substantial potential exists for continued exploration throughout this zone, which has demonstrated significant capacity to host rare earths, while opening up enormous opportunities for mineral resource expansions and extensions to Yangibana’s mine life within close proximity of the processing plant location.

This zone has been lightly drilled and, on average, only between 40-70m below the surface. Additional opportunities to the north and south of this trend have been identified by geophysics and ground mapping. Down-dip extensions remain open along the entire 8km of defined mineralisation.

Exploring and delineating the mineralisation in this zone was a key objective of the 2020 exploration drilling program, which has been successfully delivered.

In fact, the 2020 exploration drilling program has been so successful that the vast majority of holes reported to date have delivered intercepts of TREO considered to be economic by the Company.

The full HAS release including detailed tables and graphics can be found at: https://www.investi.com.au/api/announcements/has/986a8ebc-c66.pdf

Hastings Executive Chairman, Charles Lew commented: “Hastings has delivered and exceeded all of its key objectives for the 2020 exploration drilling program. The results from drilling over the past several months have shown the magnitude of the resource potential that exists at Yangibana.”

“Hastings has now defined and delivered a single coherent zone of economic mineralisation trending more than 8km in length from Fraser’s through to Simon’s Find and Bald Hill, with further upside in all areas along this zone to the north, south and at depth.”

“Additionally, the ability to replicate the results from the past few months into other areas of the tenement package remains high, with similar known geological structures demanding additional work.”

“While the average head grades at Simon’s Find results may be lower than at Yangibana’s other deposits, what is important and makes this deposit such a stand-out – in global terms – are the very high levels of neodymium and praseodymium – at 52% of total rare earths reported.”

“Hastings will now start the process of collating the drilling information to define a new mineral resource for Simon’s Find.

“The success at Simon’s Find comes amid a busy period for Hastings as we advance Yangibana’s development by concluding more offtake contracts and settling on a coastal site for our project’s hydrometallurgical plant.”

Cadence Minerals CEO Kiran Morzaria commented: “As Hastings Chairman Charles Lew says, the results from drilling over the past several months have shown the magnitude of the resource potential that exists at Yangibana, and in particular the very high levels of neodymium and praseodymium reported from Simon’s Find.”

“Although the announcement today involves territory not covered by the JV license areas, the developments are nonetheless positive indicators for the future of the joint venture and provides additional validation for our investment strategy into this project. We look forward to further developments.”   

– 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
James Sinclair-Ford
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.

Cadence Minerals #KDNC – Directors Talk Interview with CEO Kiran Morzaria

Cadence CEO Kiran Morzaria joins Directors Talk to discuss the latest developments across the group projects, specifically focusing on the group’s flagship Amapa Iron Ore Project. Kiran provides an overview of the company, and explains the project strategy, shipping of the existing iron ore stockpile, and the final project step that will see Cadence acquire an initial 20% of the asset. Kiran also explains why the directors are currently buying shares in the open market.

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