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Cadence Minerals #KDNC Bacanora Lithium #BCN Update: Positive Progress at Sonora Project in Mexico
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) reports that Bacanora Lithium plc (AIM: BCN), the London-listed lithium company, has provided a positive update on the development of its Sonora Lithium Project in Mexico (‘Sonora’ or the ‘Project’) as it prepares to commence construction of a fully integrated lithium carbonate operation, beginning with Stage 1 construction of a 17,500 tpa plant before upgrading to 35,000 tpa via a planned Stage 2 expansion project.
Highlights:
· State Governor Claudia Pavlovich hosted the official Project Commencement ceremony in Hermosillo, Mexico
· Hanwa Corporation (‘Hanwa’) of Japan has agreed in principle to extend their initial lithium off-take partnership for a further 5 years at a rate of 17,500 tpa of lithium carbonate, on the same commercial terms as the initial 5 year off-take
· Front End Engineering Design (FEED) ongoing and scheduled to have final designs, cost estimates and process guarantee scopes substantially completed by end Q2 2018
· Continued pilot plant operations for operator training and production of battery grade lithium samples for delivery to selected customers
· Current timetable is to commission the plant within 20 months subject to project financing
Bacanora is a lithium exploration and development company. Cadence has an approximately 8% of Bacanora’s equity and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the Sonora Lithium Project in Northern Mexico.
The full release can be found at: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13665220.html
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For further information, please contact. |
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Cadence Minerals plc |
+44 (0) 207 440 0647 |
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Andrew Suckling |
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Kiran Morzaria |
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WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
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James Joyce James Sinclair-Ford |
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Hannam & Partners LLP (Joint Broker) |
+44 (0) 207 907 8500 |
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Neil Passmore |
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Giles Fitzpatrick |
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Square1 Consulting |
+44 (0) 207 929 5599 |
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David Bick |
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.
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over GBP20 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Cadence Minerals #KDNC – Bacanora Lithium #BCN Sonora Lithium project update
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) reports that Bacanora Lithium plc (AIM: BCN), the London-listed lithium company, has updated on the workstreams on its flagship Sonora Lithium Project and remains on course to embark on the construction phase at Sonora in H1 2018. The Feasibility Study estimated the capital cost for the Stage 1 production of 17,500tpa of lithium carbonate at Sonora at US$420M. The Company continues to finalise its debt and equity financing strategy with its financial advisors.
Cadence holds approximately 8% of Bacanora’s equity.
The full release can be found at: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13594184.html
Kiran Morzaria, Chief Executive Officer of Cadence, commented: “We are pleased that the construction phase at Sonora is on course with production due to commence in the first quarter of 2020.”
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For further information, please contact. |
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Cadence Minerals plc |
+44 (0) 207 440 0647 |
|
Andrew Suckling |
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|
Kiran Morzaria |
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|
WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
|
James Joyce James Sinclair-Ford |
|
|
Hannam & Partners LLP (Joint Broker) |
+44 (0) 207 907 8500 |
|
Neil Passmore |
|
|
Giles Fitzpatrick |
|
|
Square1 Consulting |
+44 (0) 207 929 5599 |
|
David Bick |
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.
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over GBP20 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Cadence Minerals #KDNC – Bacanora Lithium update on the Zinnwald Lithium Project in Germany
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) reports that Bacanora Lithium plc (previously “Bacanora Minerals” – AIM: BCN), the London-listed lithium company, announces that the feasibility study for the Zinnwald Lithium Project in Germany continues on schedule. Following the completion of the infill drilling programme in December 2017, assay results are currently being collated. Work for the purposes of updating the resource estimate in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (‘NI 43-101’) will commence in Q2 2018 and will be followed by mine design and mine planning activities.
Work on the processing flow sheet has progressed through the crushing, grinding and magnetic separation stages and roasting testwork is now underway. Once this work is completed the metallurgical testwork will focus on the production of high value downstream lithium products, facilitated by access to product reagents from the chemical industries located in Dresden. The feasibility study remains on track for completion in Q2 2019.
The full release can be found at: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13590519.html
Cadence holds approximately 8% of Bacanora’s equity.
Kiran Morzaria, Chief Executive Officer of Cadence, commented: “We are pleased that work on the Zinnwald Project is on schedule with the feasibility study completion on track for early next year.”
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For further information, please contact. |
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Cadence Minerals plc |
+44 (0) 207 440 0647 |
|
Andrew Suckling |
|
|
Kiran Morzaria |
|
|
WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
|
James Joyce James Sinclair-Ford |
|
|
Hannam & Partners LLP (Joint Broker) |
+44 (0) 207 907 8500 |
|
Neil Passmore |
|
|
Giles Fitzpatrick |
|
|
Square1 Consulting |
+44 (0) 207 929 5599 |
|
David Bick |
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.
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over GBP20 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Cadence Minerals #KDNC – Re Bacanora Minerals update on the proposed re-domicile
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) reports that Bacanora Minerals Ltd (‘Bacanora’, AIM: BCN, TSXV: BCN) has today announced it intends to re-commence the process of changing its domicile of jurisdiction from Canada to the UK.
Bacanora now intends to raise a significant amount of new debt and equity financing to fund its growth as an international lithium company with new projects in Mexico and Germany and believes that a UK domiciled company with its primary listing on AIM is the best way to achieve this. Bacanora intends to move its head office and its senior management to the UK, and as a result, anticipates that the Re-domicile will result in significant cost and administrative savings
The full announcement can be found here: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13527268.html.
Further to the announcement on the 01 February 2018 by Bacanora, in which it updated the progress in regards to the Strategic Cornertone Investor Financing, Cadence minerals current holds approximately 9% of Bacanora’s equity and once the financing is complete Cadence will hold approximately 7% of Bacanora’s equity. Cadence also holds 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the Sonora Lithium Project in Northern Mexico.
– Ends –
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For further information, please contact. |
|
|
Cadence Minerals plc |
+44 (0) 207 440 0647 |
|
Andrew Suckling |
|
|
Kiran Morzaria |
|
|
WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
|
James Joyce |
|
|
James Sinclair-Ford |
|
|
Hannam & Partners LLP (Joint Broker) |
+44 (0) 207 907 8500 |
|
Neil Passmore |
|
|
Giles Fitzpatrick |
|
|
Square1 Consulting |
+44 (0) 207 929 5599 |
|
David Bick |
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.
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Proactive Investors – Cadence Minerals #KDNC has a good spread of projects able to feed into continued strength in lithium markets
There’s still everything to play for in the lithium sector, according to Kiran Morzaria of Cadence Minerals Plc(LON:KDNC).
He’s better placed to form a view than most, as Cadence is a long-standing key shareholder in two of the London market’s most successful lithium companies, European Metals Holdings (LON:EMH) and Bacanora Minerals (LON:BCN).
Cadence’s return on its stake in European Metals is in the order of 160%, as at the end of January 2017, while the return on the whole portfolio is in the order of 70%.
So this is a company that’s active in the lithium space, and which has been since before lithium really began to move. And it’s also a company that’s willing to keep its money invested in the expectation of more gain.
“The long-term contract prices for battery grade lithium carbonate are running at around US$12,000 per tonne” says Morzaria.
“We really can’t see that abating given the forecasted demand over the next 10 years. We see a six-fold increase in demand and not enough supply coming on – there’s still undiscovered country out there.”
As such, Cadence is assessing new opportunities all the time. Quality propositions like the Sonora project of Bacanora or the Cinovec project of European Metals are thin on the ground though, and despite a small portfolio of earlier stage assets, these two remain at the heart of the Cadence proposition.
But there’s upside to be had here too, and not just because of the bullish outlook for lithium.
“Both Bacanora and European Metals are still undervalued compared to their peers in Australia and Canada,” says Morzaria.
In a way that’s surprising, given that they are the only two listed lithium entities in London of any substantial size.
On the other hand, as with some other commodities, there may be a perception that the bigger action is to be had on other markets, where there is representation for the so-called “Lithium triangle projects” and other brine projects.
But both Sonora and Cinovec look well-positioned to produce product as part of a global supply chain that is already falling into place.
Off-take agreements are already in place for Sonora, with product destined for a major Japanese and a major Chinese customer, both of whom have put up money to secure their positions.
Meanwhile Cinovec, which according to Morzaria’s estimate is running around a year behind the Sonora development timetable, is nuzzled right up close to the car manufacturers of southern Germany.
So, if Cinovec has the advantage of a tin credit, Sonora has the edge timewise.
“With Sonora, they have completed their feasibility study” says Morzaria. “People can see surety and the real risk is now financial. The technical risk has been taken out.”
At European Metals, where Morzaria is also a director, a bankable study is just getting underway.
That may stem the news flow somewhat, but on the other hand, EMH has consistently delivered value all through the exploration and development process, and it would perhaps be foolhardy to doubt that it will deliver even more value when it comes to an economic wrapper for Cinovec.
We shall see.
In the meantime, Cadence has recently taken an interest in some hard rock lithium projects in Argentina, and Morzaria is hopeful that the company will be able to deliver a maiden resource there within 12 months.
This transaction was different to Cadence’s previous investments, as it allows the company to acquire up to 100% of the private exploration company.
“The Argentine investment represented a strategic shift for Cadence,” says Morzaria.
“The structure of the deal allows us to take an active management approach, while minimising financial exposure. We can utilise our experience, technical background and contacts within the lithium sector and apply it to the exploration and development of an asset which has the potential to deliver quicker and cheaper development timelines.”
So the Cadence investment portfolio runs all along the development pipeline, with Sonora closest to production.
“Within a year Bacanora will have financed and started construction of its Sonora mine,” says Morzaria.
And if the lithium market continues strong in the face of rising demand from electric vehicles and other battery consumption, then Cadence will be uniquely placed to benefit.
Cadence Minerals #KDNC – Sonora Lithium Project Feasibility Study Filed
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) reports that Bacanora Minerals (AIM: BCN, TSXV: BCN) has announced that it has now filed the Feasibility Study for the Sonora Lithium Project[1] in Mexico that has been prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
The results of the FS confirm the positive economics and favourable operating costs of a 35,000 tonnes per annum (“tpa”) battery grade Li2CO3 operation. The FS estimates a pre-tax project Net Present Value (“NPV”) of US$1.253 billion at an 8% discount rate and an Internal Rate of Return (“IRR”) of 26.1%, and Life of Mine (“LOM”) operating costs of US$3,910/t of lithium carbonate (“Li2CO3“).
Bacanora is a lithium exploration and development company. Cadence has an approximately 7% of Bacanora’s equity and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the Sonora Lithium Project in Northern Mexico.
The full Bacanora release can be found at: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13508738.html
– Ends –
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For further information, please contact. |
|
|
Cadence Minerals plc |
+44 (0) 207 440 0647 |
|
Andrew Suckling |
|
|
Kiran Morzaria |
|
|
WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
|
James Joyce |
|
|
James Sinclair-Ford |
|
|
Hannam & Partners LLP (Joint Broker) |
+44 (0) 207 907 8500 |
|
Neil Passmore |
|
|
Giles Fitzpatrick |
|
|
Square1 Consulting |
+44 (0) 207 929 5599 |
|
David Bick |
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.
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Cadence Minerals #KDNC – Bacanora Minerals #BCN cornerstone investor marks further excellent progress at Sonora Lithium project
Cadence Minerals #KDNC is pleased to announce that Bacanora Minerals Ltd ~BCN has today announced that NextView Capital, a leading Chinese institutional fund management group focused on new technologies and energy, has agreed to acquire a 19.89% equity interest (non-diluted) in Bacanora via the placement of 32,976,635 common shares in the Company at a price of 94.53 pence (approximately C$1.6223) per share. The £31,172,813 (approximately C$53,498,000) capital raised by the Placing will be used for the continued development of Bacanora’s Sonora Lithium Project.
In addition, Bacanora has agreed to supply NextView with 5,000tpa of lithium carbonate produced at its Sonora Project in Mexico on a best endeavours basis at market prices from its Stage 1 of production, with a firm commitment to supply 8,000tpa of lithium carbonate during Stage 2 and a best endeavours promise to supply a further 7,000tpa during Stage 2. NextView has also agreed to employ its reasonable endeavours to assist Bacanora in procuring project debt financing for Sonora.
Bacanora has also reported that, In view of the size of the opportunity provided by the Chinese and Japanese markets for lithium, Bacanora intends to commence a review of the parameters of its planned two-stage operation at Sonora with a view to increasing Stage 1 from 17,500tpa.
Highlights:
- New Institutional Investor agrees to acquire 19.89% interest in Bacanora
- Follows highly favourable Feasibility Study which estimated an NPV8 of US$1.253 Billion
- Provides entry into key Chinese market
Bacanora is a lithium exploration and development company. On completion of the placing Cadence will have approximately 7% of Bacanora’s equity and a 30% stake in the Mexalit S.A. de CV (“Mexalit”) joint venture which forms part of the Sonora Lithium Project in Northern Mexico.
The full Bacanora announcement can be found at: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13466569.html
Kiran Morzaria, Chief Executive Officer of Cadence, commented: “The announcement of the positive feasibility study and the addition of a cornerstone investor in one week show excellent progress is being made in the development of the Sonora lithium project. Critically via the offtake agreement associated with this investment, Sonora lithium carbonate product will gain a foothold into the Chinese market, which represents one of the largest growth areas for the electric vehicles and associated demand for battery grade lithium carbonate.”
“We look forward to hearing further updates from Bacanora as they progress the development of the project in the coming year. In particular, we look forward to the results of the review in which Bacanora plan to increase the production in stage 1”
The Sonora Lithium Project and Details of Cadence’s ownership:
On completion of the placing by Bacanora Cadence Minerals will hold approximately 7% of the equity in Bacanora Minerals and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions. These concessions form part of the Sonora Lithium Project as assessed in the FS published a Summary of which has been published today by Bacanora.
Megalit does not form part of the Sonora Lithium Project and does not form part of the FS released by Bacanora.
The direct and indirect interests of Cadence in the Sonora Lithium Project and other mineral concessions in the Sonora province are as follows:
- La Ventana and La Ventana 1, which are 100 percent owned by Minera Sonora Borax S.A. de C.V.(“MSB”), a wholly-owned subsidiary of Bacanora; Cadence, through its direct interest of approximately 7% of Bacanora, has an indirect interest in these concessions of approximately 7%.
- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. (“Mexilit”). Cadence has a 30% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with Cadence’s direct interest of approximately 7% in Bacanora, has a total economic interest in Mexalit of approximately 35%.
- Buenavista, San Gabriel and Megalit concessions, which are held by Megalit S.A. de C.V. (“Meglait”). Cadence has a 30% direct interest in Megalit through its Joint Venture with Bacanora, and when combined with Cadence’s direct interest of approximately 7% in Bacanora, has a total economic interest in Megalit of approximately 3%.
-Ends –
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For further information, please contact. |
|
|
Cadence Minerals plc |
+44 (0) 207 440 0647 |
|
Andrew Suckling |
|
|
Kiran Morzaria |
|
|
WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
|
James Joyce |
|
|
James Sinclair-Ford |
|
|
Hannam & Partners LLP (Joint Broker) |
+44 (0) 207 907 8500 |
|
Neil Passmore |
|
|
Giles Fitzpatrick |
|
|
Square1 Consulting |
+44 (0) 207 929 5599 |
|
David Bick |
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Cadence Minerals #KDNC – Feasibility Study Estimates $1.25bn NPV for Sonora Lithium Project
Cadence Minerals #KDNC is pleased to announce that Bacanora Minerals Ltd #BCN has today published a summary of the Feasibility Study for the Sonora Lithium Project in Mexico. The results confirm the positive economics and favourable operating costs of a 35,000 tonnes per annum (“tpa”) battery grade Li2CO3 operation. The FS estimates a pre-tax project Net Present Value (“NPV”) of US$1.253 billion at an 8% discount rate and an Internal Rate of Return (“IRR”) of 26.1%, and Life of Mine (“LOM”) operating costs of US$3,910/t of lithium carbonate (“Li2CO3“).
Following the results of the FS, Bacanora intends to progress the Sonora Lithium Project through the development stages over the next 24 months with the detailed design engineering phase currently scheduled for late Q1 2018.
The full Bacanora announcement can be found at: Bacanora Minerals Feasibility Study
Highlights from the Bacanora release:
Two stage open-pit operation at Sonora: Stage 1 – 17,500 tpa for 4 years; Stage 2 – 35,000 tpa
- Estimated Project pre-tax IRR of 26.1%; NPV of US$1.253 billion (at 8% discount rate) with a simple Stage 1 project payback of four years. Revenues are based on a flat US$11,000/t for battery grade Li2CO3 over LOM, significantly below the current Li2CO3 price range of US$12,000 – 20,000/t
- Low estimated LOM operating costs of US$3,910/t of Li2CO3 – lower than the new lithium brine operations being reported in Argentina
- Average LOM annual earnings before interest, taxes, depreciation and amortisation (“EBITDA”) estimated at US$229 million per annum
Sonora: a large lithium deposit
- Measured plus Indicated Mineral Resource estimate of over 5 million tonnes (“Mt”) (comprising 1.9 Mt of Measured Resources and 3.1Mt of Indicated Resources) of lithium carbonate equivalent (“LCE”)and an additional Inferred Mineral Resource of 3.7 Mt of LCE
- Low stripping ratio: open-pit mine design indicates a total of 37.1 Mt of ore to be mined over the planned 19-year mine life with an average stripping ratio of approximately 3.4:1 over LOM
Conventional flow sheet: uses established sulphate route processing technology
- Integrated plant designed to initially process 1.1Mt of ore per year during Stage 1, subsequently increasing to 2.2 Mt per year for Stage 2
- Stage 1 capital cost estimate of US$420 million includes – mining, processing plant, infrastructure, construction of Tailings Management Facility, general administration costs as well as the requisite contingencies
- Potential to sell up to 30,000 tpa of potassium sulphate (“SOP”, “K2SO4“) for sale to the Mexican fertiliser industry
Next Steps: advance Sonora towards production to satisfy expected continuing growth in demand for lithium driven by growing sectors such as electric vehicles and energy storage
Subject to Bacanora board approval and other key milestone events, project detailed design is expected to commence in late Q1, 2018.
Kiran Morzaria, Chief Executive Officer of Cadence, commented: “These results confirm the potential of the Sonora Project to become a significant producer of battery grade lithium for the emerging industries of electric cars and advanced energy storage. Together with Bacanora’s existing off take agreement, Bacanora is now moving onto the development phases of the Project and we look forward to its continued progress towards production.”
The Sonora Lithium Project and Details of Cadence’s ownership:
Cadence Minerals holds approximately 9% of the equity in Bacanora Minerals and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions. These concessions form part of the Sonora Lithium Project as assessed in the FS published a Summary of which has been published today by Bacanora.
Megalit does not form part of the Sonora Lithium Project and does not form part of the FS released by Bacanora.
The direct and indirect interests of Cadence in the Sonora Lithium Project and other mineral concessions in the Sonora province are as follows:
- La Ventana and La Ventana 1, which are 100 percent owned by Minera Sonora Borax S.A. de C.V.(“MSB”), a wholly-owned subsidiary of Bacanora; Cadence, through its direct interest of approximately 9% of Bacanora, has an indirect interest in these concessions of approximately 9%.
- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. (“Mexilit”). Cadence has a 30% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with Cadence’s direct interest of approximately 9% in Bacanora, has a total economic interest in Mexalit of approximately 36%.
- Buenavista, San Gabriel and Megalit concessions, which are held by Megalit S.A. de C.V. (“Meglait”). Cadence has a 30% direct interest in Megalit through its Joint Venture with Bacanora, and when combined with Cadence’s direct interest of approximately 9% in Bacanora, has a total economic interest in Megalit of approximately 36%.
– Ends –
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For further information please contact |
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Cadence Minerals plc |
+44 (0) 207 440 0647 |
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Andrew Suckling |
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Kiran Morzaria |
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WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
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James Joyce |
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James Sinclair-Ford |
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Hannam & Partners LLP (Joint Broker) |
+44 (0) 207 907 8500 |
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Neil Passmore |
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Giles Fitzpatrick |
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Square1 Consulting |
+44 (0) 207 929 5599 |
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David Bick |
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.
About Cadence Minerals
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Cadence Minerals #KDNC says Bacanora Minerals #BCN granted mining licence for Zinnwald Lithium Project
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) reports that Bacanora Minerals (AIM: BCN, TSXV: BCN) has announced that its jointly controlled entity, Deutsche Lithium GmbH, has been granted a mining licence covering 256.5 hectares of its Zinnwald Lithium Project which is located in southern Saxony, Germany, close to the key German automotive and downstream lithium chemical industries. The 30-year Licence has been issued by the Saxony State Mining Authority (Sächsisches Oberbergamt) in accordance with §8 of the German Mining Act (Bundesberggesetz)
The following work has been completed or is ongoing:
- A resource infill drilling programme to upgrade the existing resource model in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects
- Four of out of 15 planned infill drilling holes have been completed – the remaining holes are scheduled for completion by January 2018
- Collection of a 100 tonne bulk ore sample from the legacy mine at Zinnwald to provide samples for metallurgical testwor
- Material has been crushed and sent to metallurgical laboratories in Germany
- Grinding, magnetic separation and concentration testwork programmes will be carried out over the next four months to develop the final flowsheet to produce a lithium rich concentrate
- On completion of the concentration testwork, hydrometallurgical testwork for downstream processing will be undertaken, focusing on the production of higher value lithium battery chemical products
Bacanora is a lithium exploration and development company. Cadence has a 9.3% of Bacanora’s equity and a 30% stake in the Mexalit S.A. de CV joint venture which forms part of the Sonora Lithium Project in Northern Mexico.
The full release can be found at: https://www.investegate.co.uk/bacanora-minerals-ld–bcn-/rns/mining-licence-issued-for-lithium-project–germany/201711080700058491V/
Kiran Morzaria, Chief Executive Officer of Cadence, commented: “We are very pleased to see the grant of the mining licence for the Zinnwald Project. Like the Sonora Project in Mexico, Zinnwald has the characteristics of a world class asset, which has the potential to provide significant supplies of lithium products to the strategically important European and Asian lithium markets.“
– Ends –
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For further information, please contact. |
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Cadence Minerals plc |
+44 (0) 207 440 0647 |
|
Andrew Suckling |
|
|
Kiran Morzaria |
|
|
WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
|
James Joyce |
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James Bavister |
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Hannam & Partners LLP (Joint Broker) |
+44 (0) 207 907 8500 |
|
Neil Passmore |
|
|
Giles Fitzpatrick |
|
|
Square1 Consulting |
+44 (0) 207 929 5599 |
|
David Bick |
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.
About Cadence Minerals
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Cadence Minerals #KDNC – Bacanora Minerals #BCN says feasibility study update & surface rights secured for Sonora Lithium Project
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that Bacanora Minerals (AIM: BCN, TSXV: BCN) has secured access and surface rights for the Sonora Lithium Project in Mexico. This is in line with Bacanora’s strategy to construct an open-pit mine and large-scale beneficiation processing facility at Sonora, which is one of the world’s larger deposits. In addition it has further progressed its Feasibility Study for a 35,000 tonnes per annum lithium carbonate operation at Sonora. The FS is on course for completion in late 2017.
Highlights from the Bacanora Release
· The access and surface rights mainly relate to the land area covering mineral resources contained within the La Ventana, Fleur and El Sauz areas.
· Bacanora has entered into binding agreements to acquire the freehold to two parcels of land which, following completion of the FS, will provide with unrestricted access to develop the Project and operate it for the initial life of mine.
· Siginificant progress toward the completion of the FS by the end of 2017 has been made;
· Vendor quotes for the supply of equipment have been received
· Reagent and chemical supply pricings have been received
· Mass and Energy Balances and detailed flow sheets completed
· The pilot plant in Hermosillo continues to operate to produce battery grade lithium carbonate product samples and Bacanora receives ongoing feedback from future customers in Asia.
The full release can be found at: https://web.tmxmoney.com/article.php?newsid=7518385809616384&qm_symbol=BCN
Kiran Morzaria, Chief Executive Officer of Cadence, commented: “Securing the access and surface rights represents another major step for the Sonora Project in delivering its planned, large scale lithium production facility.”
– Ends –
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For further information, please contact. |
|
|
Cadence Minerals plc |
+44 (0) 207 440 0647 |
|
Andrew Suckling |
|
|
Kiran Morzaria |
|
|
WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
|
James Joyce |
|
|
James Bavister |
|
|
Hannam & Partners LLP (Joint Broker) |
+44 (0) 207 907 8500 |
|
Neil Passmore |
|
|
Giles Fitzpatrick |
|
|
Square1 Consulting |
+44 (0) 207 929 5599 |
|
David Bick |
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.
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.