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Cadence Minerals #KDNC – Corporate Update – Hastings Technology Metals
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement by Hastings Technology Metals (ASX: HAS) (“Hastings”) in regard to further progress at the Yangibana Rare Earths Project. Hastings has announced that it has reduced the Yangibana delivery risk by awarding the EPC Process Plant Contract to GR Engineering.
Highlights:
• Hastings enters binding Engineering, Procurement and Construction (EPC) terms sheet entered with GR Engineering Services Limited (GRES) for delivery of the beneficiation plant and associated infrastructure for the Yangibana Rare Earths Project (Yangibana).
• The $210 million EPC contract is lower than cost estimates for an equivalent scope under the current Engineering, Procurement and Construction Management (EPCM) model, and includes:
o A fixed price component of $180 million for the beneficiation plant; and
o A provisional component of $30 million, mainly for earthworks associated with the beneficiation plant and tailings storage facility.
• The EPC contract offers additional benefits and lowers risk in multiple areas, compared with the EPCM model, including guarantees on time, cost and product quality with first concentrate delivery in Q1 CY2025.
• GRES will commence work immediately under a three-month early works agreement.
• Change in delivery model for the beneficiation plant is an outcome of the ongoing Hastings
review of the capital cost, schedule and project execution strategy
Link here to view the full Hastings announcement
Cadence CEO Kiran Morzaria, commented: “On behalf of the Cadence board, we are pleased to see Yangibana take another step towards production, and in doing so deliver a further reduction in delivery risk through a substantial cost saving in the EPC contract. I look forward to providing further updates.”
Cadence shareholding in Hastings
On 25 January 2023, Cadence completed the sale of its 30% stake in several mineral concessions forming part of the Yangibana Rare Earths project for a consideration of 2.45 million Hastings shares, equating to approximately 1.9% Hastings issued share capital. This consideration was a premium over the Net Present Value (“NPV”) of the Cadence portion of the mineable material, based on the definitive feasibility (“DFS”) updated by Hastings on 21 February 2022.
The full announcement concerning the Yangibana sale is available here.
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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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WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
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James Joyce |
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Darshan Patel Enzo Aliaj |
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Brand Communications |
+44 (0) 7976 431608 |
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Public & Investor Relations |
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Alan Green
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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
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on the progress of three of its investments. The latest presentation is available on our website.
Hastings Technology Metals (ASX: HAS) (“Hastings”)
On 25 January 2023, Cadence completed the sale of its 30% stake in several mineral concessions forming part of the Yangibana Rare Earths project for a consideration of 2.45 million Hastings shares, equating to approximately 1.9% Hastings issued share capital. This consideration was a premium over the Net Present Value (“NPV”) of the Cadence portion of the mineable material, based on the definitive feasibility (“DFS”) updated by Hastings on 21 February 2022.
Hastings recently published an update on the Yangibana Rare Earth Project, highlights of which are as follows:
- Significant progress during the last two months on enabling construction and ordering long lead critical items.
- A total of $146 million in contractual commitments has been made to date, demonstrating the high degree of confidence by the Hastings Board in the future of the Yangibana project.
- Ore Reserves increased 25% to 20.93Mt at 0.90% Total Rare Earth Oxide (TREO) grade, increasing mine life to 17 years.
- Senior management appointments in the last two months include Rudolph van Niekerk as COO, Robert Klug as General Counsel, and Tim Gilbert as General Manager of Operations. Recruitment is underway for Project Director and the CFO position following the recent career move by Matthew Allen.
- Cost and schedule review identified potential areas for construction contracting model restructuring, optimisation and de-risking.
- The recent engagement of Boston Consulting Group (BGC) to assist in further investigating the merits of an integrated mine-to-magnets strategy and exploration of partnership opportunities.
The full announcement concerning the Yangibana sale is available here.
Sonora Lithium Project (“Sonora”)
Cadence holds a partial interest in the Sonora Lithium Project via a 30% stake in the joint venture interests in each of Mexilit S.A. de CV (“Mexilit”) and Megalit S.A de C.V (“Megalit”). Mexilit, with its El Sauz and Fleur concessions, forms part of the Sonora Lithium Project and is a part of the reserve in the mine plan after initial mining in the La Ventana concession (100% Ganfeng). Mexalit and Megalit are each 70% indirectly owned by Ganfeng Lithium Co (“Gangfeng”) and 30% by Cadence.
A feasibility study report was published in January 2018. The report estimated a pre-tax project net present value of US$1.253 billion at an 8% discount rate, an Internal Rate of Return of 26.1% and Life of Mine operating costs of US$3,910/t of lithium carbonate. Ganfeng has stated that they expect the capacity of phase I will deliver 50,000 tons of lithium hydroxide, which is 42% above the anticipated production levels outlined in the feasibility study.
In 2021, a decree was passed by the Mexican government to reform the domestic energy sector (“Decree”). The Decree stated that lithium would be included among the minerals considered strategic for an energy transition. As a result, no new concessions for lithium exploitation by private companies would be granted. Earlier this month, the Mexican government passed a presidential decree confirming that within a 900 square-mile lithium mining zone in northern Sonora state, existing concessions would “remain safe”. This aligns with the general opinion that the Decree passed by the Senate only impacts licenses, concessions, or contracts to be granted, not already those granted, as is the case for the Sonora Lithium Project.
Amapá Iron Ore Project (“Amapá”)
Earlier this year, Cadence published an economically robust Pre-Feasibility Study (” PFS”) for the Amapa Iron Ore Project. Along with the PFS and subsequent consultations with the key contractors, we have identified three areas of possible improvement to Amapá.
The first will be to review the historical drilling and geological data north of the Amapá mineral concessions. The data has been acquired and is currently being processed to identify further iron ore resources, which, if present, would further increase the mine life. The second area of potential improvement is a change in the layout of the port at Santana by moving the railway loop further from the shore. A scoping study regarding this option has already been completed and identified capital savings. The last area of potential improvement is to investigate and review the flowsheet to improve the final product quality over and above the current 65% iron ore concentrate.
During 2022, the impact of the Ukraine war and the legacy of Covid on supply chains resulted in higher shipping costs and lower iron ore pricing. As a result, only one iron ore shipment was made during the year. The net proceeds of this shipment, along with approximately half of the net proceeds from the shipments in 2021, have been used to pay the secured bank creditors as per the settlement agreement announced in December 2021 here. Given these unprecedented macro-economic conditions, DEV Mineração S.A. (“DEV”) was unable to meet the 2022 payment schedule as per the settlement deed and although the bank creditors have reserved their rights, the settlement deed remains in full effect with all parties in discussions with a view to agree a new timetable in order to rephase payments so these can be met in light of market conditions.
With improving iron ore prices and stability returning to shipping costs, the sale of the 58% iron ore concentrate stockpile is now economically viable. We expect shipping to recommence in the next six months, with the net revenues being used to pay the bank creditors, as per the settlement agreement.
Cadence CEO Kiran Morzaria, commented: “As is the nature of any investment company, our value is driven by the sum of our parts. With the recent reduction in Hastings share price our portfolio valuation has also reduced. However, we see no fundamental reason for this price volatility given the substantial progress. Hastings is making in the construction of the Yangibana rare earth project and we look forward to them advancing to project towards production in 2024.”
“Cadence’s current public and private investments have continued to perform delivering an unrealised return of approximately 172% and our listed investments have delivered a total return (realised and unrealised) of 328%.”
“Our confidence in Amapa continues to grow thanks to a potential further increase in the overall iron ore resource, improvements to the port and prospects for restarting iron ore shipments in the coming months. I look forward to providing further updates.”
| 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
Enzo Aliaj |
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 (EU) No. 596/2014, as it forms part of UK 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 – Listing of Evergreen Lithium on the Australian Stock Exchange
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that Evergreen Lithium Limited (“Evergreen”) has filed its admission Prospectus with Australian Securities & Investments Commission and the Australian Stock Exchange (“ASX”). Cadence owns approximately 15.8 million Evergreen shares which are anticipated to represent 8.7% of the issued share capital of Evergreen on admission. Evergreen’s indicative timetable for admission is 10 March 2023.
Highlights:
- Evergreen Lithium has filed a listing and offering prospectus with the ASX; the anticipated admission date is 10 March 2023.
- On admission, Cadence will own approximately 8.7% of Evergreen, which at the offer price values Cadence’s equity stake at AS$ 3.96 million.
- Evergreen intends to advance three hard rock lithium exploration projects in Australia.
- The flagship Byone Lithium Project covers the north-eastern strike extent of the lithium-and tantalum endowed Bynoe Pegmatite field;
- The project is adjacent to Core Lithium’s producing lithium mine.
- Soil sampling on the project returned geochemical anomalies indicating lithium mineralisation.
- Based on soil sampling alone an initial five target zones have been identified that contain lithium mineralisation.
- The second prospect, Kenny Lithium, is located within the Dundas Mineral Field of Western Australia, close to Mt Dean and Mt Belches-Bald Hill pegmatite fields’
- Initial field mapping on the project has confirmed the presence of substantial outcropping pegmatites
- 10km zone of pegmatite outcropping has been confirmed in the North-Eastern section of the Kenny Lithium Project
- Evergreen has recently completed a comprehensive auger program, drilling 1,731 holes. Evergreen expects the results to be available shortly after admission.
Cadence CEO Kiran Morzaria commented: “On behalf of the Cadence board, I am pleased that our investment into Lithium Technologies and Lithium Supplies have materialised into soon to be listed Evergeen and its Byone and Kenny lithium projects. Once Evergreen lists on the ASX market, it will add further value to Cadence’s rounded portfolio of listed lithium investment vehicles, which include European Metals Holdings (AIM: EMH) and our Sonora Lithium assets. Added to this, Cadence has exposure to the world class Yangibana rare earths project through it’s shareholding in Hastings Technology Metals (ASX: HAS) and of course our flagship Amapa iron ore project, the value of which was recently estimated with the publication of a pre-feasibility study, associated post tax NPV and maiden ore reserve declaration.”
“Your board believes that considerable potential exists across our assets to deliver further progress as we move forward in 2023. I look forward to reporting back with further developments.”
Background to Cadence’s investment in Evergreen Lithium
Cadence Minerals received approximately 15.8 million shares in Evergreen in July 2022 when Cadence sold its 31.5% stake in Lithium Technologies and Lithium Supplies (“LT and LS”) to Evergreen as announced on 27 June 2022. This initial consideration was valued at AS$ 3.16 million (£1.81 million). A further AS$ 6.63 million (£3.80 million) shares in Evergreen are due to Cadence on the achievement of certain performance milestones by Evergreen. Further details of these milestones can be found in the Evergreen prospectus available here. Cadence’s shares may be subject to a 2-year escrow agreement as determined by the listing rules of the ASX.
As of 31 December 2021, the total carrying values of LT and LS in the Company’s balance sheet was approximately £803,000. Based on the anticipated admission price of Evergreen on the ASX, Cadence’s shares in Evergreen will be worth £2.27 million.
Evergreen Lithium
On acquiring LT and LS, Evergreen became the 100% owner of three exploration tenements. The Bynoe Lithium Project and Fortune Lithium Project (awaiting grant of exploration permit) are located in the Northern Territory, and the Kenny Lithium Project is located in Western Australia.
Evergreen is listing on the ASX to develop these projects further and raise up to AS$ 7 million via a share offer. Evergreen can advance its business model if the listing and the offer are successful.
Byone Lithium Project
The Bynoe Lithium Project is Evergreen’s flagship prospect. Evergreen’s primary focus is to explore and discover an economically viable lithium resource for development. The Bynoe Lithium Project is located south of Darwin in the Northern Territory, Australia. It covers the north-eastern strike extent of the lithium- and tantalum-endowed Bynoe Pegmatite Field.
The Bynoe Pegmatite Field is host to Core Lithium Ltd’s (ASX: CXO) (“Core Lithium” or “Core”) high-grade Finniss lithium deposit, which is adjacent to Core Lithium’s producing lithium mine. Core Lithium’s deposit is just 1.2km from the Bynoe Lithium Project. Soil sampling conducted on the Bynoe Lithium Project has returned geochemical anomalies that indicate the lithium mineralisation continues along the trend into the Company’s Bynoe Lithium Project. Based on the initial stages of soil sampling alone (which only covers approximately 10-20% of the Bynoe Lithium Project area, an initial five target zoneshave been identified that contain lithium mineralisation. The Bynoe Lithium Project covers an area of 231 km2, making Evergreen one of the largest tenement holders within the central Bynoe Pegmatite Field after Core Lithium.
In recent years, exploration activities within the Bynoe Field have been focused on the discovery of economic lithium mineralisation hosted in pegmatites, the most successful of which has been Evergreen’s neighbour, Core Lithium, which in a very short time frame, has delineated a JORC mineral resource of 18.9mt at 1.32% Li2O at its Finniss Project. Core Lithium has achieved excellent drilling intercepts at their BP33 prospect of 107 metres at 1.70% Li2O, located within 1km of the Bynoe Lithium Project and Core Lithium’s Finniss (BP33) mine.
After listing and completion of its capital raise, Evergreen intends to expand the geochemical soil sampling significantly. In addition, Evergreen recently completed an Ambient Noise Topography (“ANT”) Survey and is currently awaiting its geophysical interpretation. Core Lithium recently used ANT (refer to ASX announcement Core Lithium, 1 August 2022, “BP33 drilling delivers outstanding results”). Core noted the results were an “outstanding success” and showed “excellent correlation” with known pegmatite bodies that were already identified by drilling.
Once the baseline geochemical and geophysical data is collected, Evergreen plans to systematically drill test the anomalies, starting with the highest priority along strike from Core Lithium’s mineralised pegmatites.
Kenny Lithium Project
The Kenny Lithium Project is located within the Dundas Mineral Field of Western Australia and 50km East of Norseman in the Eastern Goldfields. It is close to the Mt Dean and Mt Belches-Bald Hill pegmatite fields, and there are multiple significant lithium discoveries located in close proximity to the Kenny Lithium Project
The Kenny Lithium Project covers an area of 210 km2, providing Evergreen with a large and prospective land holding within the Dundas mineral field.
The Kenny Lithium Project lies at the southern end of the Norseman-Wiluna Granite Greenstone Belt within the Archaean Yilgarn Craton. This is a well-known lithium-producing region/mineral field and is host to the significant Mount Marion, Bald Hill and Baldania mines, respectively, which are close to the Company’s Kenny Lithium Project.
Initial field mapping on the Kenny Lithium Project has confirmed the presence of substantial outcropping pegmatites, whereby an approximate 10km zone of pegmatite outcropping has been confirmed in the North-Eastern section of the Kenny Lithium Project, which significantly exceeds what has already been identified by the Government Survey of Western Australia (GSWA).
Evergreen’s goal is to explore and discover an economic lithium resource for subsequent development. As with the Company’s Bynoe Lithium Project, minimal geochemical work has been undertaken within the tenure; however, historical results have proven encouraging. Evergreen has recently completed a comprehensive auger program, drilling 1,731 holes. Evergreen expects the results to be available following the listing. After that, the Company will design a drill program to drill test any targets identified to be prospective for lithium mineralisation and test the economic potential.
Fortune Lithium Project
The Fortune Lithium Project (EL31828) is located in the Northern Territory and is currently in its application phase and undergoing Native Title procedures. Evergreen Fortune Lithium Project is 784.71km² and is located 150km northeast of Alice Springs, in the Arunta region. The tenement itself has not been historically explored for lithium.
The Fortune Lithium Project lies in the Mesoproterozoic Aileron Province of the Arunta Region. The Arunta Region comprises a sequence of Proterozoic rocks known to host tin-tantalum-tungsten pegmatites. Historic pegmatite-hosted workings targeting tin-tantalum and mica are recorded in the vicinity of the Fortune Lithium Project area. There has been no exploration activity on the Fortune Lithium Project tenement specifically. The Fortune Lithium Project is currently in the application phase and is, therefore not granted tenure.
| For further information contact:
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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 |
– Ends –
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (“MAR”). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Cadence Minerals #KDNC – Completion of Sale of Yangibana Joint Venture Interest to Hastings Technology Metals
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that it has completed the sale of its working interests in the Yangibana Rare Earths project (“Yangibana Project”) tenements to Hastings Technology Metals (ASX: HAS) (“Hastings”).
Highlights:
- Cadence has received AS$9 million of new ordinary shares in ASX-listed Hastings for its 30% stake in various tenements of the Yangibana Rare Earth Project
- Cadence has received some 2.45 million shares of Hastings, roughly 1.9% of the issued share capital of Hastings
- Hastings is constructing the world’s next producer of neodymium and praseodymium concentrate, with maiden production forecast to start in 2024
- NPV of project AS$ 1 billion, Hastings current market capitalisation AS$472 million (24/01/2023)
Further transaction details are available in Company’s RNS dated 23 June 2022 here. Cadence has sold its 30% working interest in the Yangibana Project tenements to the operator and owner of the remainder of the Yangibana Project, Hastings, for A$9 million (£5.1 million), which has been satisfied via the issue of 2,452,650 new ordinary shares in Hastings to Cadence. These shares represent approximately 1.9% of the current issued share capital of Hastings Technology and are subject to a 12-month voluntary escrow. As of 31 December 2021, the total carrying values of the tenements in the Company’s balance sheet was approximately £905,000. Based on the transaction announced, the initial profits on the sale of our interest is approximately £4.2 million.
About Hastings
Hastings is a well-managed Perth-based rare earths company primed to become the world’s next producer of neodymium and praseodymium concentrate (NdPr). NdPr are vital components used to manufacture permanent magnets used daily in advanced technology products ranging from electric vehicles to wind turbines, robotics, medical applications and digital devices.
Hastings’ flagship Yangibana project, in the Gascoyne region of Western Australia, contains a highly valued NdPr deposit with NdPr: TREO ratio of up to 52%. The site is permitted for long-life production and with offtake contracts signed and debt finance in an advanced stage. Construction has commenced, and Hastings is planning to start commissioning the beneficiation plant in late 2023, with the delivery of maiden production to key customers in 2024.
In February of last year, Hastings published a revised NPV calculation, which increased the NPV by 84% to AS$ 1 billion. Hastings also owns and operates the Brockman project, Australia’s largest heavy rare earths deposit, near Halls Creek in the Kimberley. For further information on the Company and its projects, visit www.hastingstechmetals.com
| For further information contact:
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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 |
– Ends –
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (“MAR”). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Cadence Minerals #KDNC – Corporate Update
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on the progress of three of its investments.
Amapá Iron Ore Project
Cadence is pleased to report that the pre-feasibility study for the Amapá Iron Ore Project has now been completed, and an announcement is expected to be released early in the New Year.
Evergreen Lithium Pty Ltd (“Evergreen”)
In July 2022, Cadence sold its 31.5% stake in Lithium Technologies and Lithium Supplies (“LT & LS”) to Evergreen. The terms of the sale included an initial consideration of AS$ 3.16 million (£1.77 million) in Evergreen shares, with a further AS$ 6.63 million (£3.72 million) due in Evergreen equity on the achievement of certain performance milestones.
Although Evergreen had expected a listing on the Australian Stock Exchange (“ASX”) to occur this calendar year, it is still awaiting final regulatory approval. Once approval has been granted by the ASX, Cadence will provide a further update along with a definitive timeline.
The full announcement concerning the LT & LS sale is available here.
Yangibana Rare Earths project (“Yangibana”)
In June 2022, Cadence entered into a binding agreement to sell its working interests and tenements in Yangibana to Hastings Technology Metals (ASX: HAS) (“Hastings”) for A$9 million (£5.1 million), satisfied by the issue of fully paid ordinary Hastings shares. Cadence’s 30% interest in tenements covers a small portion of the Yangibana project and potentially represents one year of the 16-year mine life.
All of the preconditions for the completion of the sale, apart from state approval for the transfer of the mineral licenses, have been satisfied. Once completed, Cadence will provide a further update and a definitive timeline.
The full announcement concerning the Yangibana sale is available here
| For further information contact:
|
|
| Cadence Minerals plc | +44 (0) 7879 584153 |
| Andrew Suckling | |
| Kiran Morzaria | |
|
WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
| James Joyce | |
| Darshan Patel |
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
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 (EU) No. 596/2014, as it forms part of UK 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 Agrees To Sell its Yangibana Joint Venture Interest to Hastings Technology Metals
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that it has entered into a binding agreement to sell its working interests in the Yangibana Rare Earths project (“Yangibana Project”) tenements to Hastings Technology Metals (ASX: HAS) (“Hastings”). Cadence’s 30% interest in tenements covers a small portion of Yangibana and potentially represents one year of the 16-year mine life.
Highlights:
- Cadence has agreed to sell its 30% working interest in the Yangibana Project tenements to the operator and owner of the remainder of the Yangibana Project, Hastings, for A$9 million (£5.1 million)
- The sale is to be satisfied by the issue of fully paid ordinary Hastings shares
- This transaction provides Cadence with equity exposure to 100% of the Yangibana Project via its equity holding in Hastings.
- The NPV of the Yangibana Project is currently AS$ 1 billion
Background
The interests will be sold for A$9.0 million to be settled by the issue of fully paid ordinary shares in Hastings at a price to be determined based on 30 days VWAP before completion, which is set at six months from the date of signing of this agreement. The commercial terms are summarised below.
As a consequence of the acquisition, Cadence will become a shareholder of Hastings. Hastings is developing the Yangibana Project. The Yangibana Project is a significant Australian Rare Earths Project, containing substantial Neodymium and Praseodymium resources.
The Yangibana Project currently covers approximately 650 square kilometres containing some 9 Mining Leases, 2 Prospecting Licenses and 19 Exploration Licenses. Cadence holds a 30% interest in 3 Mining Leases and 6 Exploration licenses. These tenements contain 0.70 million tonnes of Ore Reserves, which can increase the expected mine life of the Yangibana Project by approximately one year to a total of 16 years.
Hastings has commence site construction and is planning to commence commissioning of the beneficiation plant in late 2023, with the delivery of maiden production to key customers in 2024.
In February of this year, Hastings published a revised NPV calculation, which increased the NPV by 84% to AS$ 1 billion. Hasting’s current market capitalisation is circa A$ 415 million. Also, in February, the Australian Government’s Northern Australia Infrastructure Facility (NAIF) approved a $140 million loan facility to Hastings and Yangibana, making it the first Australian rare earth project to receive NAIF funding. The Financial Times also commented on the story. The link can be found here: https://www.ft.com/content/552274c4-221a-49ac-91dd-562c51655e76
Cadence CEO Kiran Morzaria commented: “The sale of our 30% interest in a part of the Yangibana Rare Earths Project provides Cadence with an excellent return on its initial investment and equity exposure to the entire project. Yangibana’s importance as a key REE resource today cannot be overstated.”
We look forward to reporting on Hastings development and progress towards production as construction on the mine commences.”
Commercial Terms
The following represent the key binding commercial terms for Hastings to acquire the 30% working interest in certain tenements and general-purpose licences held by Cadence Minerals Plc through its subsidiary Mojito Resources Limited:
- Consideration – A$9 million to be settled by the issue of fully paid ordinary shares in Hastings Technology Metals Ltd (herein referred to as “Consideration Shares”).
- Issue price – equal to the volume-weighted average price (VWAP) of the Hastings shares in the 30 trading days before settlement.
- Escrow – the Consideration Shares will be subject to a voluntary escrow for up to 12 months from issue
- Conditions precedent limited to execution of documents to give effect to the binding term sheet, Hastings having issued and applied to the ASX for the quotation of the Considerations Shares and any necessary approvals being received.
- Settlement to occur five days after conditions precedent have been met.
- Conditions precedent to be completed within 180 days; otherwise, either party may terminate the binding term sheet.
- General representations, warranties and indemnities for an agreement of this nature.
The net loss attributable to our 30% holdings in the tenements for 31 December 2021 is nil. As such, the net loss attributable to the Company is also nil. As of 31 December 2021, the total carrying values of the tenements in the Company’s balance sheet was approximately £905,000. Based on the transaction announced, the initial profits on the sale of our interest is approximately £4.2 million.
As outlined above, the Consideration Shares will be subject to a voluntary escrow of up to 12 months from issue. During that time, the price of Hastings public equity may vary and result in either higher or lower profitability. After the lapse of the escrow arrangement, Cadence will retain or dispose of these shares as per our investment strategy, which is available here.
Q&A with Vox Markets
CEO Kiran Morzaria will be recording an investor presentation and Q&A with Vox Markets, which will be released on Friday, 1 July 2022.
Shareholders and investors are invited to submit their questions to Katrina Perez at Vox Markets via her email at kperez@voxmarkets.co.uk. The questions should arrive no later than 6 pm on Wednesday, 29 June 2022. Any that arrive after the deadline will not be included in the Q&A.
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For further information:
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Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (“MAR”). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Cadence Minerals #KDNC – Hastings Technology Metals (ASX: HAS), Yangibana Project NPV8 Increases 84% to A$1 billion (post tax).
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to note that Hastings Technology Metals (ASX:HAS) (“Hastings”), Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia (“Yangibana” “Yangibana Project”), has announced significant progress on, and improved project economics for the Yangibana Project. The updated project economics, based on a Definitive Feasibility Study (DFS) completed by Hastings in 2017 and revised in late 2021, follows an extensive and comprehensive review period, extending over three years, which has sought to de-risk project execution, optimise the flowsheet and enhance project economics.
Highlights:
- Post-tax Net Present Value8 (“NPV8”) increases by 84% to $1,012 million.
- Post-tax Internal Rate of Return (“IRR”) of 26%.
- Life of Mine pre-tax Free Operating Cashflow increases by 71% to $4,376 million.
- Revised capital cost estimated at A$582 million (including contingency is $658 million)
- Project is ‘shovel-ready’ following a comprehensive review and assessment of current inflationary pressures present in Western Australia.
- Capital payback period forecast at 2.7 years from commencement of production.
- Production of 3,400tpa of NdPr Oxides capable of supplying up to 8% of forecast global NdPr demand.
- Discussions on funding options with suitable partners continue to progress.
- $20 million early works program to deliver the core site infrastructure at Yangibana is well underway
Key to this process was validating the capex required to bring Yangibana into operation considering the current inflationary environment and tightening labour market in Western Australia.
Following this review period, the management team now have a high degree of confidence in the quantum of capital required and are proceeding to finalise funding arrangements for Yangibana ahead of proposed commencement of plant construction activities forecast to commence in H2 2022. The $20 million early works program to deliver the core site infrastructure at Yangibana is underway with plant and personnel achieving good progress to date.
The full HAS release can be found at: https://www.investi.com.au/api/announcements/has/000839dd-0cd.pdf
Hastings Technology Metals’ Executive Chairman Charles Lew commented: “Today is a significant milestone for the Hastings team that is the result of an extensive amount of work carried out over a number of years. The updated project economics tell a story of a world-class rare earths project that will be capable not only of delivering up to 8% of global NdPr demand for a period of at least 15 years but generate significant, long-term value for all shareholders.”
“The Hastings team has done a tremendous job since 2017 to optimise and de-risk the Yangibana project, both technically and commercially, to make it an even more compelling investment proposition. Since its discovery in 2014, we were always confident in the quality of the rare earths resource endowment at Yangibana. As it turned out, the steady progress we have made over the years has converged with a strong global rare earths magnet market underpinned by the global energy transition and electric mobility. As the updated project economics demonstrate, Yangibana will be a financially and operationally robust, long-life project.”
“We are well advanced on discussions with a range of funding partners (in addition to NAIF) and are now focused on finalising the appropriate capital structure that best positions Hastings for success in bringing Yangibana into production by 2024. This includes undertaking a corporate transaction or seeking a joint venture partner(s).”
Relevance to Cadence Minerals Holdings in the Yangibana Project:
Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the remaining 70% (“Hastings”). The current mining schedule indicates that the joint venture areas are scheduled to be mined in years 12 to 15 on the mine plan. Further details of our ownership the mineral resources and reserves on our jointly held leases can be found at:
https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/
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For further information:
| Cadence Minerals plc | +44 (0) 7879 584153 |
| Andrew Suckling | |
| Kiran Morzaria | |
| WH Ireland Limited (NOMAD & Broker) | +44 (0) 207 220 1666 |
| James Joyce | |
| Darshan Patel | |
| Novum Securities Limited (Joint Broker) | +44 (0) 207 399 9400 |
| Jon Belliss |
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding Cadence Minerals Plc’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.
Cadence Minerals and the next Commodity Supercycle
There is little doubt that historians will conclude that the global impact of COVID-19 represents the worst crisis since the Great Depression. The pandemic is leaving deep and enduring scars on the global economy, taxing health and medical services to the limit, depriving children of education, while decimating sectors of commerce and industry and in particular leisure and travel.
But history has shown on numerous occasions that the indomitable human spirit has a remarkable capacity for survival and evolution amidst existential crises. As areas such as traditional High St retail and seem to be drawing to a close, sectors such as commodities and mining are booming thanks to a near perfect storm created in part by the COVID crisis.
In October 2020, the IMF stated that the total bill for the global pandemic would reach some $28tn (£21.5tn) in lost output. The rapid intervention by global Governments with rate cuts, looser monetary policies and fiscal stimulus have certainly avoided a financial catastrophe, but at the same time these actions have effectively weakened fiat currencies and increased demand for commodities.
Historically the consequences of such events invariably see a strong recovery in commodity markets. This factor was clearly in evidence as 2020 progressed, and as the COVID noose tightened, prices of commodities such as Iron Ore, Copper and Nickel, along with precious metals including Gold and Silver, all increased in value.
As a consequence, as 2020 progressed prices of commodities such as Iron Ore, Copper and Nickel, along with precious metals including Gold and Silver, all increased in value.
In the wake of the sharp economic contractions in 2020, the IMF forecast that only China was expected to emerge with any economic growth during the year. 2021 is set to be a different story however, and with the vaccine rollout accelerating globally, there are expectations for sharp recoveries across most of the leading economies. Added to this, the new $1.9tn stimulus package in the US from the Biden administration will see heavy investment into ageing US infrastructure. These factors should ensure sustained demand and pricing for iron ore and base metals.
There is also the revolution taking place within the automotive industry to consider. The move towards EV’s is accelerating rapidly, with a plethora of commitments from key automotive manufacturers such as Ford, Volvo, BMW and Jaguar to switch to electric only production in the next few years. This move of course sounds the death knell for the internal combustion engine, but at the same time is driving the cost of battery metals and component commodities such as lithium, nickel, cobalt and graphite
The net effect is that mining, specific commodities and minerals, along with the sector’s nebulous support service industries are undergoing a significant global resurgence. Projects considered uneconomical to develop, and that have remained dormant for years are returning to life, newly financed and fast tracked thanks to the array of modern desktop technologies, data and modelling tools.
Iron Ore
In a note published last December, Goldman Sachs outlined their expectations for another substantial deficit next year (27Mt, GSe), supported by a combination of gradually decelerating China steel demand growth, sharply re-accelerating demand for Western steel and tepid supply growth. GS added that the weighting of the 2021 deficit to the front half of the year points to fundamental support for a sustained price path higher over Q1 and Q2, revising near-term targets for the benchmark 62% iron ore price to 3M $140/t and 6M $150/t.
These numbers of course imply material upside longer term, and GS have also upgraded full year forecasts for 2021 to $120/t ($90/t previously) and for 2022 to $95/t ($75/t previously).
GS sees four core drivers supporting this bullish view:
- Chinese steel production has remained strong & production in 2021 remains supported by a healthy infrastructure and property project pipeline, alongside a resurgence in China’s manufacturing capex cycle and steel exports.
- With construction and heavy industry remaining relatively less affected by second-wave lockdowns, Western steel demand is also recovering ahead of expectations. Significant regional price strength in the US and Europe is likely to spur further blast furnace restarts (and hence iron demand) after an aggressive suspensions phase in 2020 contributed to the current steel supply shortfalls as demand recovers.
- Iron ore supply growth is likely to stagnate in 2021. The limited growth that exists next year is concentrated with Vale Brazil operations, which is why their recent substantive downgrade to production guidance has had such an outsized positive impact on price.
- Chinese mill iron ore inventories remain low, raising the prospect of restocking bursts through the year.
For Cadence Minerals, this bullish outlook for iron ore puts two very firm ticks in the box, firstly for what is widely regarded as the company’s flagship Amapa Iron Ore project in Brazil, and secondly the investment in ASX and TSX listed Macarthur Minerals, with whom Amapa shares numerous infrastructural and evolutionary similarities.
Amapa Project
Bringing a project the size and scale of Amapa back to life has as expected proved to be a complex and challenging process. Nonetheless, DEV Mineração, Cadence and Indo Sino Pty Ltd are reaching a legal settlement with the project creditors, and with the ruling in February by the Commercial Court of São Paulo that port operations and the shipment of iron ore stockpiles can begin, the company is set to take the first practical step towards bringing the project back to life, which will in turn bring benefits to the Amapa region in terms of employment, health and education.
Once the creditor settlement agreement has been signed, an initial $2.5m investment will be released from escrow, meaning that the Pedra Branca Alliance (Cadence & Indo Sino JV co) will own 99.9% of DEV, the owner of the entire Amapa mining and processing assets,. At this point Cadence will proportionately own 20% of Amapa. The next step will involve a further $3.5m investment following the granting of the necessary environmental licenses required to operate the mine, which will see Cadence move to a 27% stake, with an option to increase to 49% once project financing has been raised to complete recommissioning and commence production.
Last November Cadence completed an updated Mineral Resource Estimate for Amapa, which increased the 2012 Anglo American MRE estimate by 21% to 176.7 million tonnes (“Mt”) grading 39.7% Fe in the Indicated category. With a production capacity of 5.3Mt per annum, the survey also noted there was significant potential to increase the resource base after the completion of metallurgical and optimisation studies.
Lake Giles Iron Project
Cadence also has a stake (c1%) in ASX and TSX listed Macarthur Minerals, owner of the Lake Giles Iron Project near Kalgoorlie in Western Australia. The Lake Giles project consists of the Moonshine magnetite deposit and the Ularring hematite deposit, which together have an indicated Mineral Resource Estimate of 218Mt grading 27.5% Fe in the Indicated category.
Lake Giles and Amapa share many similarities in regard to facilities and production routes, and with the Feasibility Study already underway, Lake Giles has a 3.4 Mt per annum production target with potential to scale-up operations.
Lithium
A recent paper published by commodities expert Fastmarkets FB noted that global lithium supply was developing at accelerating pace due to strong and continually growing demand. In particular the demand for compounds used in lithium-ion (li-ion) batteries such as lithium carbonate and lithium hydroxide has prompted lithium producers to expand total production while diversifying their investments in different lithium operations to ramp up production and diminish asset risk.
Despite an effective over supply in 2018-2019 that saw a price moratorium and a 50% fall in the price of battery-grade lithium carbonate in China, the subsequent seismic shift to bring forward EV production and commitments from major automotive manufacturers around the world saw the price of Lithium in China surge to an 18 month high of $9450 per tonne in January 2021.
The Fastmarkets’ research team expects global lithium demand to grow to at least 1.1 million tonnes per year of lithium-carbonate equivalent (LCE) by 2025 from an expected 300,000 tonnes of LCE in 2019, with Global lithium producers set to boost output year on year to maintain pace with growing demand. Despite this, as can be seen from the table above the numbers still don’t add up, with massive shortfalls projected by Benchmark Intelligence in lithium and other key constituent metals by 2030.
Over 2018, China emerged as the world’s leading lithium-processing hub with the rapid growth of companies like Ganfeng Lithium, which specialise in converting lithium concentrate from hard rock.
Cinovec – European Metals Holdings
The Cinovec project is the largest hard rock lithium resource in Europe and 4th largest non-brine resource in the world. Perfectly located to become the central lithium supply hub for the European EV industry, Cadence owns a 12% stake in AIM listed European Metals Holdings (EMH), which in turn owns 49% of the Cinovec project, (51% owned by utilities giant CEZ Group).
Cinovec is a potential low-cost producer at the bottom of the cost curve, and will sustainably supply 25,267 tpa lithium hydroxide or 22,500 tpa lithium carbonate into the European battery market.
Sonora Lithium Project
Cadence is a 30% joint venture partner with Bacanora Lithium (BCN) on the Fleur Lease (Mexalit & Megalit) at the Sonora Lithium Project in Mexico. A completed feasibility study values Sonora Mexico at US$1.25bn NPV, with some of the lowest production costs at $4,000/t in the industry.
AIM listed Bacanora is focused on building a 35,000 tpa lithium carbonate operation at Sonora with 50% owner and take off partner Ganfeng Lithium.
Australia Hard Rock Lithium Projects
Cadence owns three dormant hard rock lithium assets in Australia. These are Picasso (Western Australia – WA), Litchfield (Northern Territories – NT) and Alcoota (NT) all of which are in regions with proven lithium mineralisation and supportive mining infrastructure.
The Litchfield project, located near Darwin (NT), has an exploration license granted and is contiguous to Core Lithium’s (ASX: CXO) territory. Core has a JORC compliant mineral resource of 8.55Mt @ 1.33% Li2O for its Finnis project (for all six deposits).
Yangibana Rare Earths Project
Operated by ASX listed Hastings Technology Metals, Yangibana is a substantial Rare Earths deposit near Gascoyne in Western Australia. Drilling and sampling have revealed high concentrations of Neodymium and Praseodymium (NdPr), essential components in permanent magnets used in electric vehicles.
Cadence is a 30% joint venture partner with Hastings on part of the Yangibana Rare Earth Element Project. Probable Ore Reserves within the tenements held by Cadence are just over 2m tonnes with TREO of 1.66%.
The current mine plan anticipates production to start from the joint venture areas (Yangibana) in year 6.
A Key Role?
Around the world today there are countless mining exploration companies, commodity investors and mine operators with projects offering scope for development and potential for investment. The challenge with any project of this nature is matching the opportunity with the macro backdrop, projected demand for the commodity alongside capex vs. return, production routes, shipping and completion of cycle to bring the product to the customer.
Rarely if ever has the industry been presented with so compelling a backdrop for the commodity market as a whole. The significant global resurgence seen in the mining sector at present given is entirely sustainable given the level of asset purchases and spending by Governments to rejuvenate damaged economies and the inevitable resulting erosion in fiat currency value.
As economies emerge from the havoc wrought by the COVID virus and restrictions on spending are lifted, it is clear that in many cases demand will outstrip availability. This will apply almost without exception across the commodity spectrum – iron ore for steel to fund reconstruction – lithium, nickel, cobalt, graphite and rare earths to address the burgeoning demand for lithium-ion battery production.
There is no doubt that the recovering global economy is embarking on the next great Commodity Supercycle. Many mining groups and commodity project investors will benefit from this phenomenon by owning the right projects, at the right stage of evolution at the right time. On the evidence available today, Cadence Minerals is certainly one of them.
Progress at Yangibana Rare Earths project reflects well on Cadence Minerals Joint Venture
Shares in Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY), the AIM listed investor into mineral resources discovery and development, have enjoyed a solid start to the start of 2021. Buoyed by the progress of the company’s flagship Amapa project in Brazil, the growth in Cadence value can also be attributed to the portfolio of strategic investments, including a 15% stake in European Metals (AIM: EMH), owner of Cinovec lithium and tin project, soon to be a cornerstone lithium supply hub for the electric vehicle (EV) industry.
In addition to this, progress has been reported this week at the Australian Rare Earths Project at Yangibana, one of the early stage investments made by Cadence which is owned and operated by ASX listed Hastings Technology Metals (ASX:HAS). Located in the Gascoyne region of Western Australia and covering some 650 sq km, the project contains substantial Neodymium and Praseodymium resources, vital components in the manufacture of permanent magnets. These of course are used in a wide and expanding range of advanced and high-tech products including EV’s, wind turbines, robotics, medical applications and others.
Hastings announced drill results from the Bald Hill deposit as part of its drilling programme across Yangibana. Bald Hill is the largest Yangibana deposit in terms of estimated Mineral Resources and calculated Ore Reserves and forms a key component to the overall Yangibana project. As a result, key project infrastructure, including the beneficiation plant and tailings storage facilities, have been placed in close proximity to this deposit.
Results from the extension drilling program at Bald Hill, the largest deposit at the Yangibana Rare Earths Project, confirm continuation of mineralisation along strike to the south connecting to the 4km long Simon’s Find – Frasers trend, with a best 3.26% total rare earth oxides (TREO) occurring across a 4m sample from a 63m shallow intersection.
The Bald Hill Resource Estimate will be updated during Q1 2021. Hastings COO Andrew Reid said the results provided “further confirmation that the unique geology at Yangibana is capable of underpinning a high-quality, long-life operation.”
“These drilling results continue to demonstrate the potential scale and quality not just of Bald Hill but other Yangibana deposits and we estimate that the project has additional growth potential..” he added.
Hastings has signed a long term binding Master Agreement with German Automotive Tier 1 supplier, Schaeffler Technologies AG, with obligation to supply a substantial volume of MREC over an initial period of 10 years
At Yangibana, Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences while operator Hastings Technology Metals owns the remaining 70% of the joint venture areas, and the rest of the project.
While the Bald Hill deposit doesn’t form part of the Yangibana joint venture area, there is nonetheless a positive read-over for the Cadence JV territories. Of course any yield from the Cadence JV areas will be processed at the beneficiation plant and tailings storage facilities, located in close proximity to the Bald Hill deposit.
Cadence CEO Kiran Morzaria emphasised this point: “Bald Hill is key to the Yangibana project, and as Andrew points out the drilling results continue to demonstrate the potential scale and quality not just of Bald Hill but the other deposits and overall project growth potential.”
“While our interests lie to the west of Bald Hill, for Cadence there is a really positive read-over into the value and future potential of our joint venture with Hastings,” Morzaria added.
Probable Ore Reserves within the tenements 30% held by Cadence are just over 2m tonnes with TREO of 1.66%. The current mine plan anticipates production to start from the joint venture areas (Yangibana and Yangibana North) in year 6 and continue to the end of mine life (year 13).
More info, including a breakdown of the probable ore reserves can be found here: https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/