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Cadence Minerals #KDNC – Corporate Update – EverGreen Targets Lithium and Gold Mineralisation at Bynoe
Cadence Minerals (AIM: KDNC) is pleased to announce the progress of the exploration of ASX-listed Evergreen Lithium Limited (“EverGreen”) (ASX: EG1) assets in Australia. Cadence is an 8.74% shareholder in EverGreen. Link here to view the full Evergreen ASX announcement
Highlights:
• The second phase of near-surface drilling has commenced at Bynoe, targeting two LCT pegmatite high-potential zones and an area of gold-arsenic anomalism
• Mapping has identified prospective areas to undertake air-core drilling targeting LCT pegmatites in the west and north-west of the lease
• Arsenic anomalism in soil sampling results, in association with geological mapping, has highlighted an extensive zone with the potential for gold mineralisation
• Further favourable results will pave the way for follow-up work programs, including additional air-core drilling and RC drilling
EverGreen announced the progress from its latest exploration activities at its prospective Bynoe Project, 50km south of Darwin and directly east of Core Lithium’s Finniss Mine in Australia’s Northern Territory.
On Saturday, 28 September, EverGreen commenced air-core drilling targeting three new areas: two prospective lithium-caesium-mantalum (LCT) pegmatites and an orogenic gold target.
Evergreen Exploration Manager Andrew Harwood commented: “Our team is excited to be in the field drilling again. The Bynoe property is huge and unexplored, with multiple gold and lithium targets. The potential for a new discovery is significant and demonstrated by the multiple lithium pegmatite resources discovered within a 5km radius on adjacent properties in the last 5 years. We believe evidence of gold mineralisation complements EverGreen’s lithium exploration activities and augments the Company’s value by becoming a multi-commodity project.”
EverGreen has previously intersected shallow pegmatites east of Lithium Plus’ Perseverance and Jewellers advanced prospects. The prospects currently being tested at EverGreen’s Bynoe Project are in a similar geological setting to Core Lithium’s Grants mine.
The current drilling program utilises air-core and auger drilling techniques to test for LCT pegmatites and gold mineralisation at shallow levels. This exploration phase is the first time EverGreen has targeted gold mineralisation at Bynoe. The gold targets are interpreted extensions of the nuggety gold associated with quartz veins discovered at Core Lithium’s Far East prospect, less than 50m from the tenure boundary (see Core Lithium Limited 17 Feb 2021 press release (ASX: CXO)). CXO’s prospects of Windswept, Hurricane and Far East (SSW to NNE) are interpreted to trend NNE into EverGreen’s Bynoe project (EL31774).
Figure 1: Bynoe Project, showing areas of intense activities
EverGreen’s geological team believes these gold occurrences are associated with the Pine Creek Orogen. The Pine Creek Orogen has a 150-year history of gold mining, with more than 4 million ounces of gold produced. Most deposits are orogenic gold deposits in the Palaeoproterozoic Cosmo Supergroup, with gold commonly hosted in quartz veins, lodes, sheeted veins, stockworks, and saddle reefs and occasionally hosted within iron-rich sediments. Gold in this orogen also occurs with zinc and silver associated with volcanic-associated massive sulphide deposits.
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For further information contact:
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Cadence Minerals plc |
+44 (0) 20 3582 6636 |
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Andrew Suckling |
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Kiran Morzaria |
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Zeus Capital Limited (NOMAD & Broker) |
+44 (0) 20 3829 5000 |
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James Joyce |
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Darshan Patel Isaac Hooper |
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Fortified Securities – Joint Broker |
+44 (0) 20 3411 7773 |
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Guy Wheatley |
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Brand Communications |
+44 (0) 7976 431608 |
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Public & Investor Relations |
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Alan Green |
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.
Cautionary and 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.
The information contained within this announcement is deemed by the company to constitute Inside Information as stipulated under the Market Abuse Regulation (E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via a regulatory information service, this information is considered to be in the public domain.
Cadence Minerals #KDNC – Evergreen Lithium (ASX: EG1) Intercepts Pegmatites at Bynoe
Cadence Minerals (AIM: KDNC; OTC: KDNCY) is pleased to note that ASX listed Evergreen Lithium Limited (“Evergreen”) (ASX: EG1) in which Cadence has an 8.74% equity stake has announced progress from initial exploration activities at its highly prospective Bynoe Project, 50km south of Darwin and directly east of Core Lithium’s Finniss Mine in Australia’s Northern Territory.
Initial aircore drilling in the north of the Bynoe Project has intercepted pegmatitic intrusions in multiple locations. Logging of drill samples at the company’s Lunchbox and Frogmouth prospects has identified pegmatites close to surface.
Highlights:
- Initial aircore drill lines intercept pegmatites at first two prospects at the Bynoe Project, 50km south of Darwin and directly east of Core Lithium’s Finnis Mine.
- Early drilling at Bynoe provides evidence that Core Lithium’s mineralised pegmatite field continues into EverGreen Lithium’s Bynoe Project.
- With an extensive aircore drilling program ongoing at Bynoe, the Company hopes to build upon its early success by identifying additional pegmatites prospective for lithium-spodumene mineralisation.
- A follow-up deeper RC drilling program is being planned to test the newly identified pegmatites below the weathered zone.
Link to view the full Evergreen ASX announcement is available here
Evergreen Exploration Manager Andrew Harwood commented: “Intercepting a blind pegmatite that is not outcropping on your first day of drilling shows that we are at the start of something good. Achieving this early proof of concept gives us confidence in our approach for EverGreen Lithium’s ongoing exploration programs. The field team and drilling contractors have done a great job getting to this point and the program will move forward quickly from here.
“The current program’s objectives involve delineating prospective pegmatites beneath the thin cover units by testing priority geochemical and geophysical targets. Our team at Bynoe are excited by the early success and eagerly anticipate drill testing the numerous pegmatite targets in the coming weeks.
“We are now planning a follow-up reverse circulation (RC) program to test depth and strike extensions of the identified pegmatites, and to understand lithium potential beneath the near surface lithium depleted zone.”
Background to Cadence’s investment in Evergreen Lithium
In July 2022, Cadence Minerals received approximately 15.8 million shares in Evergreen Lithium (“Evergreen”) when Cadence sold its 31.5% stake in Lithium Technologies and Lithium Supplies (“LT and LS”) to Evergreen as announced on 27 June 2022.During 2023 Evergreen was listed on the Australian Stock Exchange (“ASX”). Before listing, Cadence’s equity stake in Evergreen was 13.16%; due to the IPO and associated fundraising, this was reduced to 8.74%.
A further AS$ 6.63 million (£3.80 million) shares in Evergreen are due to Cadence on achieving certain performance milestones by Evergreen. Further details of these milestones can be found in the Evergreen prospectus. Cadence’s shares are subject to a 2-year escrow agreement as determined by the listing rules of the ASX (expiring in May 2025).
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For further information contact:
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Cadence Minerals plc |
+44 (0) 20 3582 6636 |
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Andrew Suckling |
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Kiran Morzaria |
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Zeus Capital Limited (NOMAD & Broker) |
+44 (0) 20 3829 5000 |
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James Joyce |
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Darshan Patel Isaac Hooper |
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Fortified Securities – Joint Broker |
+44 (0) 20 3411 7773 |
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Guy Wheatley |
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Brand Communications |
+44 (0) 7976 431608 |
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Public & Investor Relations |
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Alan Green |
Cadence Minerals #KDNC – Evergreen Lithium (ASX: EG1) Commences Field Activities at Bynoe
Cadence Minerals (AIM: KDNC; OTC: KDNCY) is pleased to note that ASX listed Evergreen Lithium Limited (“Evergreen”) (ASX: EG1) has announced the commencement of the next round of field work at its highly prospective Bynoe Project directly east of Core Lithium’s Finniss Mine. The commencement of the 2024 field program follows the approval of its Mine Management Plan (MMP), enabling EverGreen to commence high impact exploration activities at its flagship Bynoe project.
This initial auger program will operate for approximately eight weeks with samples analyzed in the field by pXRF. RAB/AC drilling contractors have been secured and are expected to commence drilling shortly to test higher priority areas for prospective for LCT pegmatites.
Geochemical, geophysical and mapping activities completed to date demonstrate the potential for lithium bearing LCT pegmatite style mineralisation within EverGreen’s EL 31774 lease.
Highlights:
- Following receiving approval for its Mine Management Plan (MMP) auger sampling has commenced at the Bynoe Project.
- RAB/AC Drilling contractors have been secured and are scheduled to commence shortly.
- Planned work programs for 2024 will include auger, RAB/AC and RC drilling, testing of geochemical and geophysical anomalies, with potential follow-up diamond drilling.
Link here to view the full Evergreen ASX announcement
Evergreen Exploration Manager Andrew Harwood commented: “Following the receipt of the approved MMP, our exploration team is now in the field undertaking the planned exploration program. The active auger program will help us explore under the thin cover layer and assist us to locate extensions of the pegmatite units identified by Core Lithium to our west.”
“With field conditions continuing to dry out following a record wet season, the team is also keen to get the RAB/AC drill rig into the field in the coming weeks. This drilling unit is quick and efficient at testing large areas of our high potential ground and will also be used to delineate shallow LCT pegmatite targets.”
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. A further AS$ 3.47 million (£1.86 million) of shares in Evergreen are due to Cadence on the achievement of certain performance milestones by Evergreen. The pricing of Evergreen shares associated with this consideration is based on a defined pricing mechanism linked to the VWAP and the date at which the performance milestones are achieved. Further details of these milestones can be found in the Evergreen prospectus available here . Cadence’s shares are subject to a 2-year escrow agreement as determined by the listing rules of the ASX.
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For further information contact:
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| 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 | |
| Fortified Securities – Joint Broker | +44 (0) 20 3411 7773 |
| Guy Wheatley | |
| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green |
Cadence Minerals #KDNC – Evergreen Lithium (ASX: EG1) – Aboriginal Areas Protection Authority (AAPA) Certificate Granted
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that ASX listed Evergreen Lithium Limited (“Evergreen”) (ASX: EG1) has announced the receipt of its Aboriginal Areas Protection Authority Certificate for the Bynoe Project in the Northern Territory, where the Company has identified multiple large and significant lithium pegmatite targets for drill testing.
Highlights:
- EverGreen’s Aboriginal Areas Protection Authority (AAPA) Certificate granted.
- A revised Mine Management Plan (MMP) for Bynoe is being finalised for approval.
- Contractors for maiden drill program at Bynoe have been secured.
- Geochemical and geophysical activities during the 2023 field season have identified multiple high priority drill targets.
- Drill testing of these targets will commence on MMP approval, subject to weather conditions.
- Drilling of high priority targets identified.
- 2,050 soil sample assays are at the laboratory awaiting assay.
Aboriginal Areas Protection Authority Certificate
Under the Northern Territory Aboriginal Sacred Sites Act, the Aboriginal Areas Protection Authority is responsible for overseeing the protection of Aboriginal sacred sites on land and sea across the whole of Australia’s Northern Territory.
The Authority consults with Aboriginal custodians to ensure they are fully informed about development; and to ensure land users and developers are given clear conditions regarding proposed work in the vicinity of sacred sites.
Through the work of the Authority, developers can have confidence to proceed with investment.
The authority certificate covers aspects of exploration including but not limited to:
- Exploration drilling (RC, Diamond, Air Core & Rotary techniques)
- Track related works (new tracks, update of existing tracks and maintenance)
- Construction of drill pads and sumps
Cadence holds 15,830,138 million shares, equivalent to 8.74% of the issued share capital of Evergreen and is its largest shareholder. Evergreen was listed on the Australian Stock Exchange on 11 April 2023.
Link here to view the full Evergreen ASX announcement
Evergreen Chairman Simon Lill commented: “Receipt of AAPA is a significant milestone in progressing the Bynoe project and ensuring the protection and preservation of Aboriginal sacred sites. With so many compelling drill targets and a drill rig on standby, we look forward to a very active and successful 2024 exploration season.”
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. A further AS$ 3.47 million (£1.86 million) of shares in Evergreen are due to Cadence on the achievement of certain performance milestones by Evergreen. The pricing of Evergreen shares associated with this consideration is based on a defined pricing mechanism linked to the VWAP and the date at which the performance milestones are achieved. Further details of these milestones can be found in the Evergreen prospectus available here . Cadence’s shares are subject to a 2-year escrow agreement as determined by the listing rules of the ASX.
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For further information contact:
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| 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 | |
| Fortified Securities – Joint Broker | +44 (0) 20 3411 7773 |
| Guy Wheatley | |
| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green |
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
Cadence Minerals #KDNC – Evergreen Lithium (ASX: EG1) Major Pegmatite Targets Uncovered in Central Bynoe’s Phase 3 Geochemical Sampling
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that ASX listed Evergreen Lithium Limited (“Evergreen”) (ASX: EG1) has announced the first batch of assays from its Phase 3 geochemical soil sampling at Bynoe in the Northern Territory which has identified new large and significant lithium anomalism. These new targets are in the central area of the tenement, demonstrating the widespread nature of potential mineralisation in the Bynoe pegmatite field. The anomalies demonstrate a north to north-east trend, similar to that found elsewhere in the Bynoe pegmatite field.
Highlights:
- EverGreen’s largest geochemical signatures identified to date in first 1007 soil samples in from Phase 3 soil sampling at Central Bynoe.
- Assay results show additional large-scale lithium (Li) trends to those previously identified.
- Additional infill and regional surface geochemical sampling completed with 2050 soil samples delivered for analysis. Results pending.
- Regional and prospect-scale mapping programs completed with additional field activities currently underway.
- Modelling of the geochemical results and previous Ambient Noise Tomography (ANT) is underway aiming to identify large “blind” pegmatite systems which do not outcrop.
- Preparation underway for the commencement of maiden drill program.
Exploration at Evergreen’s Bynoe Project has focused on the discovery of economic lithium mineralisation hosted in lithium-bearing lithium- caesium-tantalum (LCT) pegmatites.
The Bynoe Project is located contiguous to Core Lithium’s (ASX:CXO) Finniss Project which contains an estimated Total Mineral Resource of 30.6Mt at 1.31% Li2O. In 2022, Core Lithium (ASX:CXO), utilised ANT technology developed by Fleet Space Technologies at its Finniss Project.
Cadence holds 15,830,138 million shares, equivalent to 8.74% of the issued share capital of Evergreen and is its largest shareholder. Evergreen was listed on the Australian Stock Exchange on 11 April 2023.
Link here to view the full Evergreen ASX announcement
Evergreen Chairman Simon Lill commented: “Geochemical results from sample analysis at Central Bynoe is significant as it points to additional zones of interest further south-east from those identified along the Core Lithium boundary, announced previously1. Our latest mapping program across the geochemical anomalies and ANT survey targets, has identified structures hosting quartz veins with intermittent muscovite, which may be using the same structures as the pegmatite targets. The upcoming drill program, expected to commence shortly, will test several geochemical anomalies, ANT survey targets and depth extensions.”
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. A further AS$ 3.47 million (£1.86 million) of shares in Evergreen are due to Cadence on the achievement of certain performance milestones by Evergreen. The pricing of Evergreen shares associated with this consideration is based on a defined pricing mechanism linked to the VWAP and the date at which the performance milestones are achieved. Further details of these milestones can be found in the Evergreen prospectus available here . Cadence’s shares are subject to a 2-year escrow agreement as determined by the listing rules of the ASX.
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For further information contact:
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| 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 | |
| Fortified Securities – Joint Broker | +44 (0) 20 3411 7773 |
| Guy Wheatley | |
| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green |
Cadence Minerals #KDNC – Corporate Update Evergreen Lithium (ASX: EG1) ANT Geophysical Survey Interpretation Identifies 9 Priority Pegmatite Targets at Bynoe
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that ASX listed Evergreen Lithium Limited (“Evergreen”) (ASX: EG1) has announced the final analysis of its EXOSPHERE BY FLEET® Ambient Noise Tomography (ANT) geophysics survey at Bynoe.
Highlights:
- Final Ambient Noise Tomography (“ANT”) geophysical interpretation received.
- Nine potential pegmatite targets in total have been identified, each characterised by low seismic velocity anomalies.
- Survey data integration with geochemical data shows surface expression of anomalies.
- Geochemical sampling and mapping continues at Bynoe in advance of maiden drill program which awaits conclusion of MMP and AAPA approval process.
- Geophysical and geochemical integration and analysis ongoing.
ANT Background
ANT is a ground geophysics method that uses natural or man-made seismic noise as a signal source to measure the seismic velocity of the subsurface in three dimensions. The key objective of the survey was to identify potential lithium-bearing pegmatites at depth, otherwise known as blind pegmatites. Lithium pegmatites in the Bynoe Pegmatites Field have been shown to be indicated by zones of slower velocities than the surrounding metamorphic host rocks of the Burrell Creek Formation. The data has been processed and undergone a complete analysis, with a view to initially defining priority targets within each survey grid.
Preliminary results from the ANT Survey Grid 1 were announced by EverGreen on 28 June 2023 in an ASX Release titled “ANT Survey Identifies Priority Pegmatite Targets at Bynoe”.
The Bynoe Project is located contiguous to Core Lithium’s (ASX:CXO) Finniss Project which contains an estimated Total Mineral Resource of 30.6Mt at 1.31% Li2O. In 2022, Core Lithium (ASX:CXO), utilised ANT technology developed by Fleet Space Technologies at its Finniss Project.
Cadence holds 15,830,138 million shares, equivalent to 8.74% of the issued share capital of Evergreen and is its largest shareholder. Evergreen was listed on the Australian Stock Exchange on 11 April 2023.
Link here to view the full Evergreen ASX announcement
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. A further AS$ 3.47 million (£1.86 million) of shares in Evergreen are due to Cadence on the achievement of certain performance milestones by Evergreen. The pricing of Evergreen shares associated with this consideration is based on a defined pricing mechanism linked to the VWAP and the date at which the performance milestones are achieved. Further details of these milestones can be found in the Evergreen prospectus available here . Cadence’s shares are subject to a 2-year escrow agreement as determined by the listing rules of the ASX.
| For further information contact:
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| Cadence Minerals plc | +44 (0) 20 3582 6636 |
| Andrew Suckling | |
| Kiran Morzaria | |
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WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
| James Joyce | |
| Darshan Patel | |
| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green
|
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.
Cautionary and 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.
The information contained within this announcement is deemed by the company to constitute Inside Information as stipulated under the Market Abuse Regulation (E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via a regulatory information service, this information is considered to be in the public domain.
Cadence Minerals #KDNC – Corporate Update – Evergreen Lithium (ASX: EG1) identifies large-scale Lithium Pegmatite Targets at Bynoe
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that ASX listed Evergreen Lithium Limited (“Evergreen”) (ASX: EG1) has announced the results of its geochemical program at Bynoe. The soil samples show significant NE-trending lithium anomalism. The anomalies are up to several kilometres long and include anomalies in the geochemical pathfinder elements Beryllium (Be), Caesium (Cs), Potassium (K), Lanthanum (La), Rubidium (Rb), Tin (Sn) and Tantalum (Ta).
The Bynoe Project is located contiguous to Core Lithium’s (ASX:CXO) Finniss Project which contains an estimated Total Mineral Resource of 30.6Mt at 1.31% Li2O.
Cadence holds 15,830,138 million shares, equivalent to 8.74% of the issued share capital of Evergreen and is its largest shareholder. Evergreen was listed on the Australian Stock Exchange on 11 April 2023.
Bynoe Results – Highlights:
- Phase 2 soil geochemical results extend previously identified lithium anomalies and reveal two broad NE-trending zones which host multiple lithium pegmatite targets.
- These targets are along strike from and parallel to the strike of neighbouring spodumene bearing pegmatites.
- The lithium anomalies are coincident with lithium pathfinder elements Beryllium (Be), Caesium (Cs), Lanthanum (La), Rubidium (Rb), Tin (Sn) and Tantalum (Ta).
- Geochemical sampling and mapping are currently underway to further define existing and additional lithium pegmatite targets.
- Geophysical Ambient Noise Tomography (ANT) survey data has been received and interpretation is currently being undertaken.
Link here to view the full Evergreen ASX announcement
Evergreen Head of Exploration, Jason Ward commented: “These recent results add to the geochemical picture at Bynoe and indicate several very large zones of lithium anomalism. The lithium anomalies are supported by the pathfinder elements which are commonly associated with the surface expression of lithium bearing LCT pegmatites below. We will use this data together with the results of our recently conducted Fleet Exosphere ANT study, which we are currently analysing, to define drill targets.”
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. A further AS$ 3.47 million (£1.86 million) of shares in Evergreen are due to Cadence on the achievement of certain performance milestones by Evergreen. The pricing of Evergreen shares associated with this consideration is based on a defined pricing mechanism linked to the VWAP and the date at which the performance milestones are achieved. Further details of these milestones can be found in the Evergreen prospectus available here . Cadence’s shares are subject to a 2-year escrow agreement as determined by the listing rules of the ASX.
| For further information contact:
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| 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
Enzo Aliaj |
|
| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green
|
UK Investor Magazine – Cadence Minerals: A Small Company making a Big Difference in Amapa, Brazil
By Alan Green
On December 29, Cadence Minerals (AIM: KDNC), a mining investment company listed in London, announced that it had completed all the preconditions to invest into and acquire an initial 20% of the integrated Amapa iron mine, railway and port in North Eastern Brazil.
When we talked to Cadence CEO, Kiran Morzaria, via zoom on Christmas Eve just after the settlement agreement had been signed, he was understandably in good spirits. His home office is dominated by two framed pictures, one of the head gear at a mine and the second of the three miners drilling a narrow-vein ore body. Kiran relates that these pictures are from a mine that he helped restart and rehabilitate in 2008, and which remains in production, further extending its 100-year history. Morzaria relates the story:
“These images remind me of two key things; the first is that the right asset, proper jurisdiction, and right people make all the difference. The second is that however hard I am working here, there others working in far tougher conditions, so the least I can do is put in that extra mile and ensure we can move the asset forward for all our stakeholders.”
There is no doubt that the team involved in the Amapa transaction have put in the hard yards. The process started back in September 2018, when Cadence partnered with commodity trading firm Indo Sino to form a joint venture. Cadence and Indo Sino then engaged with thelocal authorities and commercial courts to acquire Amapa mine owner in administration, DEV Mineração S.A.
A plan was put forward by Cadence to bring the former Anglo American owned Amapa mine,railway and wholly owned port at Santana (complete with 1.39 Mt of iron ore in three stockpiles) out of administration and ultimately back into production. Naturally the process came with some unique challenges. Morzaria explains:
“The judicial restructuring plan was a tough process. Not only did it set some key legal precedents, it also faced challenges from competing investors. This delayed the creditors meeting by one week, and yet despite this, we got over 90% of the creditors, by value to approve our restructuring plan.”
The history of the Amapa iron ore mine goes back to its discovery and ownership by a Brazilian conglomerate, which it then packaged with the massive 6 billion tonne Minas-Rio iron ore deposit and sold on to Anglo American for US$5.5 billion. For Anglo, Amapa was a relatively small transaction, and was certainly not part of the company’s long term strategic focus and plan. As a result, Amapa was sold to Brazilian company Zamin Ferrous in 2013, but during the finalisation of this sale, the company’s wholly owned port suffered a landslide which curtailed exports. Zamin Ferrous then negotiated a lower price, but the absence of a port prevented any meaningful product export and consequently DEV went into administration.
Before its sale in 2013, Anglo American valued its 70% stake in Amapá at US$866 million (100% US$1.2 billion). Anglo impaired the asset in its 2012 Annual Accounts to US$462 million (100% US$660 million).
Given its history, to most smaller listed companies, the challenge of bringing Amapa back to life would in most cases have represented a bridge too far. However, Cadence saw an opportunity, as outlined by Morzaria:
“Once we understood the legal process in Brazil, we saw an opportunity for significant upside for our shareholders. The not inconsiderable technical and existential risks typically associated with developing a mineral resource asset were largely mitigated. The mineral resource was auditable, the mining and processing technology are established, the product mix is well known, and there is a well-trodden path to obtain the required operating licenses, with several key licenses being granted before our investment.”
“Moreover, and critically, although the asset is not a large one in terms of global production, it is very significant for the state of Amapa. Our estimates suggest that once we reach our production targets, it will represent some 3.5% of the state GDP and could contribute some 4,200 jobs to the local and national economy. These facts helped to focus support at local and governmental levels and ensured our efforts didn’t become ensnared in in red tape. A government working committee has also been set up to work with us to troubleshoot any critical issues along our path to production.”
The investment proposition to bring Amapa out of administration sees Cadence acquire a 27% interest by investing US$6 million over two stages in the JV company. The first stage is for20% of the JV, the consideration for which is US$2.5 million. The second stage of investment is for a further 7% of the JV for a consideration of US$3.5million. The funds for the first stage of investment are currently held in a judicial trust account of the commercial court of Sao Paulo.The agreement also gives Cadence a first right of refusal to increase its stake to 49%.
As the various pre-conditions set out by the commercial court of Sao Paulo were met, in 2020, DEV received permission to start shipping the iron ore stockpiled at Santana port, which immediately started generating cash. By the end of August 2021, DEV had shipped three cargoes of approximately 143,000 wet tonnes of iron ore. The net proceeds from shipment went to pay labour and small creditors, while also providing funds to invest into the recommissioning of the assets, the upgrading of the Mineral Resource Estimate and commencement of the pre-feasibility Study.
Move forward to December 2021, and with the preconditions set out by the courts met and satisfied, the final hurdle was to agree a settlement with the banks – no easy task giventhat the team were negotiating with different state owned and private banks, in two jurisdictions, with varying degrees of organizational complexity and internal compliance hurdles. Nonetheless,with Credit Committee approval announced in October 2021, the final settlement with the banks was agreed and signed in December, triggering the initial US $2.5 million investment and a 20% stake for Cadence in the Amapa project.
The final settlement is a remarkable achievement by any standards: in combination with the other unsecured creditors the settlement terms meant that DEV was now only paying 45 cents in the dollar.
After the completion of the feasibility study and project financing, the rehabilitation of the mine,railway and port is expected to take between one and half to two years, following which the mine plans to produce over 5 million tonnes of 65% iron ore. From an investor and shareholder perspective, the financials really highlight and put into perspective what Cadence has achieved here. Assuming that the targets are hit and a current 65% iron ore price (US$ 145 / tonne in Dec 2021) is achieved, gross revenues could be circa US$725 million per annum. With solid demand for iron ore showing little sign of slowing as we go into 2022, quite rightly Cadence shares should see a re rating as investors run the slide rule over the Amapa numbers.
While there is no doubt Amapa is a landmark achievement, the rest of the Cadence portfolio also continues to deliver impressive returns. Cornerstone stakes in projects such as the Cinovec Lithium and Tin Project via AIM listed European Metals Holdings (AIM: EMH) in the Czech republic generated a £3.54 million return in the first 6 months of the year, with pre- tax profits of £2.84 million.
In particular, Cinovec, owned by European Metals Holdings and Eastern European utility giant CEZ is set to become a major European and Global lithium supply hub to meet the boom in batteries and electric vehicles, with demand anticipated to grow exponentially in the coming years.
Cadence also has a range of other ‘passive’ investments, including several ASX listed lithium assets, plus joint ventures at the Yangibana Rare Earths project in Australia, the Sonora Lithium project in Mexico and a hard rock lithium exploration assets 2 km away from Core Lithium’s (ASX:CXO) mining projects in the Northern territories of Australia.
Despite this exceptionally impressive asset portfolio, along with other micro-cap investors and explorers, the sector malaise has seen Cadence shares drift during the second half of 2021, currently rating the company on a modest £32m market cap.
Nonetheless CEO Morzaria remains enthused by the opportunities he expects to materialise in 2022.
“Our shareholders have stuck with us over what has been a hugely frustrating period”
“The completion of the first phase at Amapa marks a huge achievement for everyone involved, and we are really excited about the possibilities in Brazil in 2022”
A recent visit to Amapá left a deep impression on Morzaria, who reported back to the markets in a live interview from the port at Santana.
“I was delighted to see the rapid progress on the ground, driven by a highly motivated local management team and staff. The rate of reconstruction and recommissioning work already completed gives our board huge confidence in what can be achieved next year.”
There is no doubt that bringing Amapá back to life has in cycling parlance represented a Tour de Brazil equivalent for Cadence. Regardless, Morzaria and his team have now completed the mountain section, and with several stage victories, look set for a great team result as they transition from micro-cap explorer and investor to mid-tier iron ore producer. Solid Cadence!
Cadence Minerals #KDNC – Option Granted to Castillo Copper (ASX/LON: CCZ) to Acquire the Litchfield and Picasso Lithium Projects in Australia.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that Castillo Copper (ASX/LON: CCZ) (“Castillo”) has entered into a 90-day option agreement with Lithium Technologies Pty Ltd (“LT”) and Lithium Supplies Pty Ltd (“LS”), in which Cadence owns a 29% shareholding, to acquire – subject to due diligence – the Litchfield and Picasso Lithium Projects in the Northern Territory (NT) and Western Australia (WA) respectively.
Highlights:
- ASX and London listed Castillo has a 90-day option to acquire – subject to due diligence – the Litchfield and Picasso Lithium Projects.
- Consideration for 100% of the holding companies which hold these assets (plus others) is up to AUS$ 3 million in equity of Castillo.
- Castillo is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects.
- The Litchfield Lithium Project is contiguous to Core Lithium’s (ASX: CXO) strategic Finniss Lithium Project which has JORC compliant ore reserves (7.4Mt @ 1.3% Li2O), with production slated to start in 2H 20221. There is potential for lithium pegmatite bodies along Litchfield’s north-west boundary.
- The Picasso Lithium Project in WA is proximal to Liontown’s Resources’ (ASX: LTR) Buldania Project, with a JORC compliant resource at 14.9Mt @ 0.97% Li2O3 and has mapped pegmatites that potentially host lithium mineralisation.
Cadence CEO Kiran Morzaria added: “The potential acquisition by Castillo provides Cadence with an exposure to developing copper assets which complements our already substantial lithium portfolio. Moreover, given Castillo’s established in country leadership and cash position we see this potential acquisition by Castillo as the best strategic approach to maximize returns for our shareholders. We look forward to seeing Castillo develop these assets further.”
Castillo’s Managing Director Simon Paull commented: “Acquiring prospective lithium projects, which complement the copper assets, arguably provides Castillo with a strong comparative advantage moving forward. In focusing on developing copper and lithium projects, the Board is positioning Castillo to potentially create significant incremental value from the transition towards renewable energy sources and accelerating demand for electric vehicles globally.”
Overview
LT and LS each own 50% of Synergy Prospecting Pty Ltd (“Synergy”) and have granted Castillo a 90-day option to acquire 100% of the outstanding shares of LT and LS and by implication 100% of Synergy.
During this 90-day period, Castillo will be conducting due diligence on all three entities to ensure the underlying assets are in good standing and there are no material adverse issues. Under the terms of the option agreement, Castillo can exercise its right to acquire LT, LS, and Synergy at any time during the 90-day period.
Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects:
- A large footprint in the in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region.
- Four high-quality prospective assets across Zambia’s copper-belt which is the second largest copper producer in Africa.
- A large tenure footprint proximal to Broken Hill’s world-class deposit that is prospective for zinc-silver-lead-copper-gold.
- Cangai Copper Mine in northern New South Wales, which is one of Australia’s highest grading historic copper mines.
The primary assets of Synergy, which are wholly owned, comprise the Litchfield Lithium Project (EL31774) in NT and Picasso Lithium Project (E63/1888) in WA. In addition, Synergy has an application in NT – EL31828 – known as the Alcoota Lithium Project, which comprises ground proximal to Alice Springs. Castillo will need to undertake further geological due diligence on this application.
LT and LS also hold applications for six lithium properties in San Luis Province, Central Argentina. Again, Castillo will need to undertake further geological due diligence on these applications.
Further details on these assets and all the applications and permits are contained on our website here
Option terms & consideration
The terms of the 90-day option are as follows:
- A$50,000 non-refundable deposit in cash on formally granting the option that will go directly to Synergy for working capital purposes.
Upon exercising the option within the 90-day period, the binding consideration terms are as follows:
- A$1m script payment in CCZ shares will become payable to the Vendor Group based on the 14-day WVAP calculated from the date of which the option agreement is announced to the ASX. Note, the Vendor Group will be subject to a 6-month voluntary escrow period for 50% of the shares and 12-months for the 50% balance from the date of settlement. In addition, both parties agree to sign off on a binding term sheet.
Incremental consideration terms are applicable if the following milestones are achieved:
- A$1m script payment in CCZ’s shares to the Vendor Group based on the 14-day WVAP if two drill-holes produce assayed intercepts greater or equal to a true width of at least 10m @ 1.3% Li2O.Note, the two holes will be at least 100m apart, but not greater than 200m.
- A$1m script payment in CCZ’s shares to the Vendor Group based on the 14-day WVAP if a JORC compliant total inferred resource of at least 7Mt @ 1.3% Li2O is modelled by SRK Consulting.
- In the event of commercial mining operations commencing a 2% NSR will be payable to the nominees of the facilitator.
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For further information: Cadence Minerals plc |
+44 (0) 7879 584153 |
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Andrew Suckling |
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Kiran Morzaria |
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WH Ireland Limited (NOMAD & Broker) James Joyce |
+44 (0) 207 220 1666 |
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Darshan Patel |
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Novum Securities Limited (Joint Broker) Jon Belliss |
+44 (0) 207 399 9400 |
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding Cadence Minerals Plc’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors
believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.