TIDMKDNC
RNS Number : 8797P
Cadence Minerals PLC
23 June 2022
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Cadence 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$9 million
(GBP5.1 million)
-- The sale is to be satisfied by the issue of fully paid ordinary Hastings shares
-- This transaction provides Cadence with equity exposure to
100% of the Yangibana Project via its equity holding in
Hastings.
-- The NPV of the Yangibana Project is currently AS$ 1 billion
Background
The interests will be sold for A$9.0 million to be settled by
the issue of fully paid ordinary shares in Hastings at a price to
be determined based on 30 days VWAP before completion, which is set
at six months from the date of signing of this agreement. The
commercial terms are summarised below.
As a consequence of the acquisition, Cadence will become a
shareholder of Hastings. Hastings is developing the Yangibana
Project. The Yangibana Project is a significant Australian Rare
Earths Project, containing substantial Neodymium and Praseodymium
resources.
The Yangibana Project currently covers approximately 650 square
kilometres containing some 9 Mining Leases, 2 Prospecting Licenses
and 19 Exploration Licenses. Cadence holds a 30% interest in 3
Mining Leases and 6 Exploration licenses. These tenements contain
0.70 million tonnes of Ore Reserves, which can increase the
expected mine life of the Yangibana Project by approximately one
year to a total of 16 years.
Hastings has commenced site construction and is planning to
commence commissioning of the beneficiation plant in late 2023,
with the delivery of maiden production to key customers in
2024.
In February of this year, Hastings published a revised NPV
calculation, which increased the NPV by 84% to AS$ 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 GBP905,000. Based on the transaction announced, the
initial profits on the sale of our interest is approximately GBP4.2
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.
- Ends -
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.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to
be forward-looking statements. Forward-looking statements are
identi ed 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 re ect
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DISUUAARUVUNUUR
(END) Dow Jones Newswires
June 23, 2022 02:00 ET (06:00 GMT)
Cadence Minerals (LSE:KDNC)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Cadence Minerals (LSE:KDNC)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
