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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:
|
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 #KDNC – NAIF approves $140m loan for Hastings Technology Metals’ $HAS Yangibana Rare Earths Project
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to note that Hastings Technology Metals (ASX:HAS) (“Hastings”), Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia (“Yangibana” “Yangibana Project”), has announced that that it has received approvals for a significant portion of the debt package required to fund construction of the Yangibana Rare Earths Project, in the Gascoyne region of Western Australia.
Highlights:
- Northern Australia Infrastructure Facility (NAIF) approves $140 million loan facility with 12½-year tenor, subject to pre-completion conditions.
- NAIF loan is a critical component of the Yangibana Rare Earths Project funding strategy underpinning finalisation of remaining funding requirements.
- Yangibana is the first Australian rare earths project to receive NAIF funding.
- First drawdown expected to occur in early 2023, aligned to Yangibana funding schedule.
- NAIF loan forms part of A$300-400 million of total debt financing required for Yangibana.
- Yangibana early works construction and design for long-lead items underway in anticipation of plant construction commencing in September 2022 Quarter.
- Hastings is fostering a lower carbon future and renewable energy solutions through the Yangibana rare earths project
The Federal Government’s Northern Australia Infrastructure Facility (NAIF) has agreed to supply a A$140 million, 12½-year tenor loan facility for the development of Yangibana. The loan has been approved by the NAIF Board and endorsed by the Federal Minister for Northern Australia, the Honourable David Littleproud. The NAIF loan forms part of the A$300-400 million of total debt funding required for Yangibana and is aligned with Australia’s Critical Minerals Strategy and the Western Australian Government’s Future Battery Industry Strategy.
The Yangibana project, which comprises a mine and beneficiation plant at the Yangibana site and a hydrometallurgical plant at the Ashburton North Strategic Industrial Area (ANSIA) near Onslow, will become Australia’s second rare earths producer and expands the country’s strategic capability in downstream processing of rare earths minerals.
The Federal Government’s commitment to Yangibana comes at a significant inflexion point for the global rare earths sector amid a drive by rare earths magnet-end users to secure responsible and reliable sources of supply.
The full HAS release can be found at: https://www.investi.com.au/api/announcements/has/92de7fbd-5d2.pdf
The Financial Times also commented on the story. The link can be found here:
https://www.ft.com/content/552274c4-221a-49ac-91dd-562c51655e76
Hastings Technology Metals’ Executive Chairman Charles Lew commented: “Hastings is delighted to have received the Federal Government’s support, through the Northern Australia Infrastructure Facility, for the Yangibana rare earths project. This is the Commonwealth’s first project financing package for the construction of a rare earth mine and production plant in Australia and supports the rapid development worldwide of decarbonisation technologies in e-mobility and energy. In view of the UN Climate Change Conference (COP26) held in November 2021, Hastings is proud to be at the forefront of this significant global transition to a lower carbon future and aims to be a part of the global efforts towards sustainability.”
“The commitment by NAIF will enable Hastings to finalise the funding requirements for Yangibana’s development and move into full-scale construction throughout 2022, with the objective of delivering first production by 2024. Yangibana is an amazing rare earths opportunity that will supply the world’s highest composition neodymium and praseodymium concentrate to Tier 1 customers in Europe and Asia.”
“This is an exciting time not just for Hastings but for Australia’s emerging rare earths sector. We look forward to finalising the funding arrangements that will enable the Hastings Board to make a final investment decision in the coming months.”
Relevance to Cadence Minerals Holdings in the Yangibana Project:
Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the remaining 70% (“Hastings”). The current mining schedule indicates that the joint venture areas are scheduled to be mined in years 12 to 15 on the mine plan. Further details of our ownership the mineral resources and reserves on our jointly held leases can be found at:
https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/
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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 #KDNC – Hastings Technology Metals (ASX: HAS) Yangibana Ore Sorting Testwork results in 26% Uplift in Mine Head Grade.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) notes that Hastings Technology Metals (ASX: HAS) (“Hastings”) has announced that ore sorting test work has confirmed its suitability within the beneficiation process in delivering early gangue mineral rejection and a significant upgrade of rare earths material prior to the higher-cost processing steps across the Yangibana Rare Earths Project (“Yangibana”), in Western Australia’s Gascoyne region.
The ore sorting test results confirmed that the total rare earth oxide (TREO) recovery through the ore sorter is a linear function, where the lower the head grade, the higher the mass rejection becomes. It is, therefore forecast, based on the average content of alumina and silica for all Yangibana deposits, that 24% of the proposed crusher feed will be rejected by the ore sorters as waste at the expense of only 4% TREO volumes across the life of mine schedule (“LOM”).
Highlights:
- 26% upgrade to the life of mine total rare earths oxide (TREO) grade.
- 96% overall TREO recoveries after ore sorting.
- 24% upfront mass rejection of primary crusher feed, resulting in:
- 24% reduction of beneficiation plant reagent consumption.
- 24% reduction in required tailings storage facility size for the life of mine; and
- effective mitigation of the risk of mining dilution.
- Ore sorting test work continues to validate the positive impacts on the Yangibana process flowsheet:
- Engineering development is progressing to incorporate the ore sorting circuit into the beneficiation process flowsheet.
The variability test work program was completed testing 12 samples from across the Yangibana deposits. The performance of the ore sorters is closely linked to head grade, resulting in LOM mass rejection of 24% with a corresponding increase in average grade of TREO content of 26%.
The full HAS release can be found at: https://www.investi.com.au/api/announcements/has/3bb7e431-691.pdf
Relevance to Cadence Minerals Holdings in the Yangibana Project:
Cadence is a 30% joint venture partner on 3 Mining Leases, 6 Exploration Licences of the Yangibana Project. Hastings is our 70% joint venture partner on these assets and owns 100% of the remaining portion of the Yangibana Project. Further detail on the asset and the resources and reserves on our joint venture lands can be found here
As stated in the Hastings announcement the effect of the results of the ore sorting test work is forecast to have a positive effect on the LOM. It is important to note, however, that currently a definitive feasibility study in November 2017, does not include Cadence’s joint venture interests and in addition Hastings current economic model does not include any costs or revenue ascribed to the 30% interest in the deposits held by Cadence.
Therefore, to assess the effect of the improvements announced by Hastings, we will have to await further updates which are specific to our joint venture areas.
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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 | |
| James Sinclair-Ford | |
| Novum Securities Limited (Joint Broker) | +44 (0) 207 399 9400 |
| Jon Belliss |
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding Cadence Minerals Plc’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements
Cadence Minerals 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.
Cadence Minerals #KDNC – Hastings Technology Metals (ASX:HAS) Achieves Significant Milestone With Environmental Approval to Mine & Process Rare Earths at the Yangibana Project
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce 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 Project”), has announced that it has received notification from the Hon. Stephen Dawson, Minister for Environment that he has granted the environmental permit for the Yangibana Rare Earths Project (Yangibana Project).
Cadence Minerals Yangibana Holding:
Cadence owns 30% of the Yangibana North., Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North Rare Earth Deposit which form part of the Yangibana Rare Earth Deposit. Probable Ore Reserves of some 2.1 million tonnes at 1.66% total rare earth elements are contained within 30% owned joint venture tenements. Further details of these reserves and pre-feasibility study can be found at: http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2688632.
Highlights:
- WA Minister for Environment has granted the environmental permit for the Yangibana Rare Earths Project.
- Environmental approval milestone clears the path for remaining permits to be considered leading to construction and development work commencing.
The permit is subject to conditions listed in Statement No. 1110, which has been published on the EPA website. The conditions require on going compliance with additional flora and vegetation surveys and monitoring, groundwater abstraction monitoring and water level monitoring of the nearby stygofauna habitat.
The Yangibana Project includes the development of five open pit mines, groundwater abstraction, on-site processing plant for the ore, tailings storage facilities, access and haul roads and supporting infrastructure such as accommodation facilities, administration buildings and an airstrip.
The full release can be found at: https://www.asx.com.au/asxpdf/20190820/pdf/447mddrkvg9vt2.pdf
Cadence CEO Kiran Morzaria commented:“Today’s announcement marks a significant milestone for the Yangibana Rare Earths Project. We now await the outcome for the remaining permits relating to commencement of construction and development work commencing.”
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For further information:
| Cadence Minerals plc | +44 (0) 207 440 0647 |
| Andrew Suckling | |
| Kiran Morzaria | |
| WH Ireland Limited (NOMAD & Broker) | +44 (0) 207 220 1666 |
| James Joyce | |
| James Sinclair-Ford | |
| 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-LookingStatements:
Certain statements in this announcement are or may be deemed to beforward-lookingstatements. Forward-lookingstatements 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-lookingstatements 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 keypersonnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions.The Company cannot assure investors that actual results will be consistent with such forward-lookingstatements.
Cadence Minerals #KDNC – Hastings Technology Metals (ASX:HAS) Confirms No Appeals on EPA Recommendation of Environmental Approval for Yangibana
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce 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 Project”), has announced that the Appeals Registrar (WA Office of the Appeals Convenor) has not received any appeals on the EPA Assessment Report, which recommends approval of the Yangibana Project subject to the proposed conditions.
Cadence owns 30% of the Yangibana North., Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North Rare Earth Deposit which form part of the Yangibana Rare Earth Deposit. Probable Ore Reserves of some 2.1 million tonnes at 1.66% total rare earth elements are contained within 30% owned joint venture tenements. Further details of these reserves and pre-feasibility study can be found at: http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2688632.
Highlights:
- The Appeals Registrar (WA Office of the Appeals Convenor) has notified Hastings that they have received no appeals on the EPA’s recommendation to approve the Yangibana Project.
- Next step in the approvals process is consultation with the Decision Making Authorities (“DMAs”), i.e. Ministers for Water, Mines and Aboriginal Affairs to obtain their agreement to the implementation of the project in accordance with the proposed conditions.
The DMAs will be provided with the draft conditions (as detailed in the EPA Assessment Report) for their consideration and must then provide their agreement to the implementation of the proposal subject to the draft conditions. The Minister for Environment will then consider the proposal and EPA recommendation.
The Yangibana project includes the development of five open pit mines, groundwater abstraction, on-site processing of ore, tailings storage facilities, access and haul roads and supporting infrastructure such as accommodation facilities, administration buildings and an airstrip.
The full release can be found at: https://www.asx.com.au/asxpdf/20190717/pdf/446p7m8wcdgm40.pdf
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For further information:
| Cadence Minerals plc | +44 (0) 207 440 0647 |
| Andrew Suckling | |
| Kiran Morzaria | |
| WH Ireland Limited (NOMAD & Broker) | +44 (0) 207 220 1666 |
| James Joyce | |
| James Sinclair-Ford | |
| 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-LookingStatements:
Certain statements in this announcement are or may be deemed to beforward-lookingstatements. Forward-lookingstatements 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-lookingstatements 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 keypersonnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions.The Company cannot assure investors that actual results will be consistent with such forward-lookingstatements.
Cadence Minerals #KDNC – Hastings Technology Metals (ASX: HAS) – EPA (Environmental Protection Authority) recommends Environmental Approval for a Proposal to Mine & Process Rare Earths at Yangibana Project
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that Hastings Technology Metals (ASX: HAS) (“Hastings”) has advised that the EPA has publicly released the Yangibana Rare Earths Project report, which is now open for a 2-week public appeal period, before being submitted to the Minister of Environment for final approval.
Cadence owns 30% of the Yangibana North., Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North Rare Earth Deposit which form part of the Yangibana Rare Earth Deposit. Probable Ore Reserves of some 2.1 million tonnes at 1.66% total rare earth elements are contained within 30% owned joint venture tenements. Further details of these reserves and pre-feasibility study can be found at: http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2688632.
Highlights from Hastings News Release:
- Hastings has secured the next step in the approvals process allowing it to maintain construction commencement guidance for 2019 subject to final finance arrangements.
- Yangibana has undergone a very thorough environmental impact assessment to the satisfaction of the Western Australian EPA, Department of Mines, Industry Regulation and Safety, and the Department of Water and Environmental Regulation and other key stakeholders.
The EPA considers impacts to water and human health were unlikely to be significant and could be managed under Part V of the Environmental Protection Act 1986, the Rights in Water Irrigation Act 1914, the Radiation Safety Act 1975, the Mines Safety and Inspection Act 1994 and the Mining Act 1978.
The proposal includes the development of five open mine pits, groundwater abstraction, on-site processing of ore, tailings storage facilities, access and haul roads and supporting infrastructure such as accommodation facilities, administration buildings and an airstrip.
Full Hastings ASX announcement here:
https://www.asx.com.au/asxpdf/20190627/pdf/4464xmxkn6xr63.pdf
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For further information:
| Cadence Minerals plc | +44 (0) 207 440 0647 |
| Andrew Suckling | |
| Kiran Morzaria | |
| WH Ireland Limited (NOMAD & Broker) | +44 (0) 207 220 1666 |
| James Joyce | |
| James Sinclair-Ford | |
| 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-LookingStatements:
Certain statements in this announcement are or may be deemed to be forward-lookingstatements. Forward-lookingstatements 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-lookingstatements 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 keypersonnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions.The Company cannot assure investors that actual results will be consistent with such forward-lookingstatements.
Cadence Minerals #KDNC – Yangibana Rare Earth Joint Venture Partner signs Second Offtake MOU Agreement with Schaeffler AG
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce 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 Project”), has signed a Second Offtake MOU Agreement with Schaeffler AG (“Schaeffler”).
Cadence owns 30% of the Yangibana North., Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North Rare Earth Deposit which form part of the Yangibana Rare Earth Deposit. Probable Ore Reserves of some 2.1 million tonnes at 1.66% total rare earth elements are contained within 30% owned joint venture tenements. Further details of these reserves and pre-feasibility study can be found at: http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2688632.
Hastings Announcement Highlights:
- Hastings announces its second German offtake MOU and investment with Schaeffler for the future supply of Mixed Rare Earth Carbonate (MREC) from the Yangibana Project.
- Schaeffler supported Hastings in its eligibility for the Euler Hermes German Government UFK loan scheme.
Schaeffler is a global automotive and industrial supplier of high-precision components and systems in engine, transmission, and chassis applications, as well as rolling and plain bearing solutions for a large number of industrial applications, primarily focussed on the automotive industry. In 2018 it generated sales of approximately Euro 14.2 billion with around 92,500 employees, Schaeffler is one of the world’s largest family companies and, with approximately 170 locations in over 50 countries, has a worldwide network of manufacturing locations, research and development facilities, and sales offices.
Under the MOU, the parties have outlined their intent to enter into a binding commercial offtake agreement within the next 6 months for the sale and purchase of MREC, which will be produced from Yangibana, Western Australia. The framework for the commercial offtake agreement is set out in the MOU, and the final terms and conditions will be formalised in a contract. Schaeffler’s intention in entering into an offtake agreement is to ensure reliable supplies of rare earth material in the future.
The Parties have undertaken to negotiate in good faith to reach agreement for a 10 year commercial offtake contract to supply MREC which contains the critical raw materials of neodymium (Nd) and praseodymium (Pr). NdPr is a critical raw material used in the manufacture of permanent magnets, the key component in electric motors.
Schaeffler is also supporting Hastings in its eligibility for the German government’s untied loan guarantee scheme (known as UFK) in its project financing for the construction of its mine and processing plant in the Upper Gascoyne of Western Australia.
The full release can be found at: https://www.asx.com.au/asxpdf/20190611/pdf/445qzvlt14cb9w.pdf
Cadence Minerals CEO Kiran Morzaria commented: “This second offtake agreement announced with Schaeffler provides further validation of the Yangibana Project potential and our joint venture strategy with Hastings Technology Metals. We look forward to further developments.”
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For further information:
| Cadence Minerals plc | +44 (0) 207 440 0647 |
| Andrew Suckling | |
| Kiran Morzaria | |
| WH Ireland Limited (NOMAD & Broker) | +44 (0) 207 220 1666 |
| James Joyce | |
| James Sinclair-Ford | |
| 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 beforward-lookingstatements. Forward-lookingstatements 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-lookingstatements 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 keypersonnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions.The Company cannot assure investors that actual results will be consistent with such forward-lookingstatements.
Cadence Minerals #KDNC – Hastings Technology Metals (ASX: HAS) takes key steps towards Yangibana development with additional accommodation camp purchase.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that Hastings Technology Metals (ASX: HAS) (“Hastings”) has announced that it has agreed to purchase an additional 100 bedrooms of camp capacity plus other associated infrastructure from Fleetwood Pty Ltd.
Cadence owns 30% of the Yangibana North., Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North Rare Earth Deposit which form part of the Yangibana Rare Earth Deposit. Probable Ore Reserves of some 2.1 million tonnes at 1.66% total rare earth elements are contained within 30% owned joint venture tenements. Further details of these reserves and pre-feasibility study can be found at: http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2688632.
Highlights from Hastings News Release:
- Hastings enters agreement to purchase 100 extra rooms plus associated infrastructure from Fleetwood Pty Ltd.
- Purchase takes the total number of rooms purchased to 340 out of a total of 380 identified as required during the construction of the mine and processing plant.
The camp acquisition agreement represents a significant capital saving for the project and a discount of approximately 35% compared to the cost estimate of buying new.
The opportunity to acquire the camp, whilst being financially attractive, will also help reduce pressure on the development timetable. The balance of 40 rooms identified as a requirement during peak production will not be needed until approximately 8 months after commencement of construction.
The Yangibana Project involves the development of Rare Earth’s deposits rich in neodymium and praseodymium, elements vital to permanent magnets that provide many critical components of wide-ranging high-tech products, including electric vehicles, renewable energy wind turbines, robotics, medical applications and others. The development of this project is expected to bring benefits to the Gascoyne, Carnarvon and Meekatharra regions of northern Australia including through employment and business opportunities. The Yangibana Project aims to be the next significant producer of neodymium and praseodymium outside of China.
Full Hastings ASX announcement here:
https://www.asx.com.au/asxpdf/20190513/pdf/44517n3nrcljt0.pdf
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For further information:
| Cadence Minerals plc | +44 (0) 207 440 0647 |
| Andrew Suckling | |
| Kiran Morzaria | |
| WH Ireland Limited (NOMAD & Broker) | +44 (0) 207 220 1666 |
| James Joyce | |
| James Sinclair-Ford | |
| 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-LookingStatements:
Certain statements in this announcement are or may be deemed to be forward-lookingstatements. Forward-lookingstatements 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-lookingstatements 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 keypersonnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions.The Company cannot assure investors that actual results will be consistent with such forward-lookingstatements.