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Cadence Minerals #KDNC – Hastings Technology Metals & Estonian Government to Jointly Evaluate Downstream Processing Opportunities
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement by Hastings Technology Metals (ASX: HAS) (“Hastings”) that it has signed a non-binding Memorandum of Understanding (“MoU”) with the Estonian Government’s investment agency, Ettevotluse ja Innovatsiooni Sihtasutus (“EIS”) to collaborate on a joint scoping study into the potential development of downstream rare earth processing capabilities in Estonia.
Following the release of the Staged Development Feasibility Study in May 2023, Hastings’ primary focus is the construction of the Yangibana Rare Earths Project’s (“Yangibana Project”) mine and beneficiation plant to produce a rare earth mineral concentrate for export to its offtake partners and enable a quicker pathway to early project cashflows.
In parallel, Hastings continues to assess the potential to capture more of the rare earth value chain through downstream processing of its concentrate to produce a mixed rare earth carbonate.
Highlights:
- Hastings and the Estonian Government – a European Union (“EU”) member country – will commence a joint study on a hydrometallurgical plant for downstream processing of rare earth concentrate as part of Stage 2 of the Yangibana Rare Earths Project
- Joint study builds on Hastings’ 21.15% investment in TSX-listed Neo Performance Materials Inc. which has an operating rare earth separation facility and a rare earth permanent magnet manufacturing plant under construction in Estonia
- Strategic alignment with the vision of Hastings, the Estonian Government and the EU to establish an integrated mine-to-magnet European supply chain, developing capabilities to provide strategic materials to European original equipment manufacturers for electric vehicle traction motors and renewable energy technologies
- Memorandum of Understanding with the Estonian Government’s investment agency Ettevotluse ja Innovatsiooni Sihtasutus outlines objectives including potential grants, funding, fiscal and tax incentives.
During the September quarter, Hastings completed early infrastructure works at the Yangibana Project, including the Kurrbili Accommodation Village, Yangibana Airstrip, access roads, production borefields, water pipelines and clearing and grubbing of the entire plant site.
Link here to view the full Hastings announcement
Hastings Executive Chairman Charles Lew commented: “Hastings is delighted to establish this partnership with the Estonian Government to evaluate downstream processing opportunities, as a natural extension of our ongoing work to maximise value from the Yangibana Rare Earths Project. This is also builds on our strategic investment into Neo Performance Materials to advance our vision of building a rare earth magnet supply chain for the European market, in line with the ongoing focus from European Union member states such as Germany to secure alternative sources for critical raw materials.”
EIS’s Head of Foreign Investment Department, Joonas Vanto, said: “We are pleased to welcome Hastings to conduct a feasibility study for the establishment of a hydrometallurgical plant in Estonia. The establishment of such a plant would help to further develop the value chain of permanent magnets and electrification that is already operating here and would support Estonia’s and the European Union’s ambition to achieve climate neutrality.”
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. 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. Currently Cadence holds approximately 1% of Hastings issued share capital.
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 |
| Andrew Suckling | |
| Kiran Morzaria | |
| WH Ireland Limited (NOMAD & Broker) | +44 (0) 20 7220 1666 |
| James Joyce | |
| Darshan Patel | |
| Fortified Securities – Joint Broker | +44 (0) 20 3411 7773 |
| Guy Wheatley | |
| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green |
Cadence Minerals #KDNC – Corporate Update – Hastings Technology Metals
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement by Hastings Technology Metals (ASX: HAS) (“Hastings”) that it has introduced a staged development strategy to reduce delivery risk and enable faster pathway to cash flow for the Yangibana Rare Earths Project.
Highlights:
- Results of the project capital and delivery model review support a staged development strategy for the Yangibana Rare Earths Project
- This strategy will reduce upfront capital requirements and project execution risks as well as providing a faster pathway to cash flow by Q1 2025
- Initial focus will be on construction of the Yangibana mine and beneficiation plant to produce rare earths concentrate (Stage 1), followed by development of a hydrometallurgical plant to produce mixed rare earth carbonate (Stage 2)
- Total project capital cost is now estimated at $948m, with the Stage 1 component being $470m (a 40% increase to the estimate from 2020/21)
- Fixed price contracting model aims to minimise risk of further capital cost increases, demonstrated by the recent arrangement with GR Engineering for construction of the beneficiation plant
- Beneficiation plant construction to commence in Q3 CY2023, supporting Stage 1 concentrate delivery target date of Q1 CY2025
- Concentrate offtake discussions underway with rare earth oxides producers in Australia and offshore with a view to concluding firm contracts prior to drawdown of project finance debt in early 2024
- Potential for strong Stage 1 financial returns with post-tax NPV11 of $538m, an IRR of 27.54% and average annual EBITDA of $174m providing a funding source for Stage 2.
Link here to view the full Hastings announcement
Hastings Executive Chairman Charles Lew commented: “The Yangibana Rare Earths Project is one of the world’s most advanced greenfield rare earth projects and is well-timed to meet the forecast supply gap for magnet rare earth elements which are required to support the global transition to clean energy. A comprehensive project review undertaken by our new experienced management team has confirmed that this world-class project remains financially and operationally robust, with the investment in a Stage 1 mining and beneficiation plant being a compelling proposition. The implementation of a two-stage development strategy for Yangibana will lower the upfront capital funding requirements, reduce the project execution risk and enable a faster pathway to early project cash flows which can be used to fund Stage 2 plant construction.”
Cadence CEO Kiran Morzaria, commented: “The Cadence board remain enthusiastic shareholders and supporters of Hastings Technology Metals and the Yangibana Rare Earths project. We are pleased to see the project risks further reduced by the introduction of a two stage investment strategy, and we are excited by the prospects for commencement of the beneficiation plant construction within the next few months. 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.
| 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 |
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| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| 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 – 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:
|
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| 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 – Investment Update
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to update shareholders on the progress of its principal investments.
Highlights:
- Completion of Amapa Ore Reserve Estimate supports planned 15-year mine life
- Cadence increases Amapa stake to 30% through conversion of loans, capitalisation of management, consultancy, admin and cash investment. No additional capital raising required.
- European Metals Holdings (“EMH”) reports significant developments with the Cinovec Lithium Chemical Plant (“LCP”) extraction process, which is expected to is expected to reduce both Capex and Opex in the LCP by 10-20%.
- Following the sale of stakes in Lithium Technologies and Lithium Supplies (“LT & LS”), Evergreen Lithium Pty Ltd is progressing with its listing on the Australian Stock Exchange.
- Following the sale in working interests in the Yangibana Rare Earths project (“Yangibana”) tenements to Hastings Technology Metals (ASX: HAS), we expect various regulatory approvals to be completed by the end of the year.
Cadence CEO, Kiran Morzaria, commented: “I am delighted to report that we have taken several significant steps forward with our flagship Amapa project. The decision to convert loans and other costs into an increased stake in Amapa was almost a formality following successful completion of the ORE and the consequential progress with the PFS. With the steady increase in project value, your board are genuinely excited at the development prospects of Amapa.”
I look forward to reporting further progress across all our projects in the coming months.”
Amapa Iron Ore Project (“Amapa” or the “Project”)
Cadence announced in early October the completion of an upgraded and increased Mineral Resource Estimate (“MRE”). The Measured and Indicated portion of this MRE has been used to calculate the Ore Reserve Estimate (“ORE”). The ORE represents the economically mineable part of a Measured and Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by our Pre-Feasibility Study (“PFS”).
We are happy to report that the ORE has been completed, and the results support the planned 15-year mine life. The JORC 2012 compliant statement and supporting disclosures will form part of the PFS publication, which is still scheduled for publication this quarter.
Given the excellent progress at Amapa and the economics of the asset, Cadence intends to increase its stake from 27% to 30% while still retaining its previously announced first right of refusal to acquire 49% of the asset.
Cadence will earn this additional three per cent via the conversion of loans that the Company has made to the Project, the capitalisation of management, consultancy and other admin cost and further cash investment in the Project. The total value of these three items is approximately US$3.3 million. Cadence requires no additional capital raising to increase its stake
Once complete, Cadence will have acquired 30% of Amapa for approximately US$9.3 million. Anglo-American valued its 70% stake in Amapa at US$ 462 million (100% US$ 660 million).
European Metals Holdings (“EMH”)
EMH has announced significant developments in the processing flowsheet for the Cinovec vertically integrated battery metals project (“Cinovec”) in the Czech Republic.
Highlights
- The simplified Lithium Chemical Plant (“LCP”) extraction process has delivered exceptionally clean battery-grade lithium carbonate
- LCP has the capability to deliver very high-purity lithium hydroxide, lithium carbonate, lithium sulphate or lithium phosphate
- The simplified process is expected to reduce both Capex and Opex in the LCP by 10-20%.
- LCP recoveries of 88-93% lithium proven in locked-cycle testwork, an outright recovery improvement of 3-6% over locked-cycle testwork for earlier, more complex flowsheet
- LCP pilot programme to commence in 4Q CY22 with marketing samples available to offtake partners in 1Q CY23; pregnant leach solution containing 48kg of lithium carbonate equivalent is ready to be processed
Link here for the full EMH announcement: https://www.investi.com.au/api/announcements/emh/a4072882-271.pdf
Other Investments
In July 2022, Cadence sold its 31.5% stake in Lithium Technologies and Lithium Supplies (“LT & LS”) to Evergreen Lithium Pty Ltd (“Evergreen”). This was for an initial consideration of AS$3.16 million (£1.81 million)in Evergreen shares, with a further AS$6.63 million (£3.80 million) due in Evergreen equity on the achievement of certain performance milestones Evergreen is progressing with its listing on the Australian Stock Exchange. We anticipate that this will be completed by the end of this year.
The full announcement concerning the LT & LS sale is available here.
In June 2022, Cadence entered into a binding agreement to sell its working interests in the Yangibana Rare Earths project (“Yangibana”) tenements to Hastings Technology Metals (ASX: HAS) (“Hastings”) for A$9 million (£5.1 million) to be satisfied by the issue of fully paid ordinary Hastings shares. Cadence’s 30% interest in tenements covers a small portion of Yangibana and potentially represents one year of the 16-year mine life. Cadence and Hastings are awaiting various regulatory approvals, and we anticipate that this will be completed by the end of the year.
The full announcement concerning the Yangibana sale is available here
| For further information:
|
|
| Cadence Minerals plc | +44 (0) 7879 584153 |
| Andrew Suckling | |
| Kiran Morzaria | |
|
WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
| James Joyce | |
| Darshan Patel |
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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.
Cadence Minerals #KDNC – Interview with Kiran Morzaria direct from Santana, Brazil
Alan Green talks to Cadence CEO Kiran Morzaria direct from Santana Port, Brazil. Today, Cadence has announced a substantial upgrade in total Measured, Indicated and Inferred Mineral Resources, to 276.24 Million Tonnes at a grading of 38.33% Fe at the Amapa iron ore project. Valued by former owner Anglo American at $600m in 2012, an investment of just $6m has seen Cadence acquire a 27% stake in the project, with an option to increase to 49%. Kiran explains how this upgrade contributes to the current ongoing pre-feasibility study, and the steps the company needs to take to bring Amapa back into production. We look at potential revenue forecasts for the fully recommissioned mine, and how important it is for the region in regard to employment, health and education. Kiran then covers the lithium and rare earth investment returns from Australia, and in particular the Yangibana Rare Earths project, plus the Sonora and Cinovec Lithium project investments. We finish with a look at upcoming news, plus Kiran comments on the market valuation vs. assets.