TIDMKDNC
RNS Number : 1070T
Cadence Minerals PLC
22 November 2021
Cadence Minerals Plc
("Cadence Minerals", "Cadence")
Castillo Copper (ASX/LON: CCZ) field trip to the Picasso Lithium
Project identifies circa 10km zone of pegmatites.
Further to the announcement of 27 October 2021, Cadence Minerals
(AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that Castillo
Copper (ASX/LON: CCZ) ("Castillo") has provided an update on the
Picasso Lithium Project following the visit of its geology team who
mapped and collected samples from the high-density corridor.
For the full Castillo announcement, please click link here .
Highlights
-- A circa 10km zone of pegmatite occurrences was confirmed in
the north-eastern part of the tenure, which significantly exceeds
government mapping; and
-- The observed pegmatites are potentially related to lithium
mineralisation which enhances prospectivity of the tenure's
north-eastern quadrant
-- Due diligence for the Litchfield Lithium Project is
progressing with the laboratory expected to return assays within
2-3 weeks
Field Trip Findings:
Castillo's geology team undertook considerable mapping across
the Picasso Lithium Project, though much of the time was focused on
the tenure's north-east quadrant where the high-density pegmatite
corridor is located. Encouragingly, a circa 10km zone of pegmatite
occurrences was confirmed in the tenure's north-east quadrant which
is the best exposed part of the Picasso Lithium Project. Notably,
the pegmatites potentially host lithium mineralisation though this
is subject to further investigation. There are several areas of
outcropping basement where granite is the dominant rock type.
Interestingly, there is potential to discover further pegmatites
across the tenure as there is significant shallow sand cover.
Simon Paull, Managing Director of Castillo Copper, commented:
"The geology team's visit to the Picasso Lithium Project delivered
encouraging news, confirming that a 10km zone of pegmatites is
apparent in the tenure's north-east quadrant. The Board's
preliminary conclusion, based on due diligence undertaken to date,
is the Picasso Lithium Project is prospective for lithium
mineralisation and delivers significant incremental exploration
potential."
Cadence CEO, Kiran Morzaria, added: "We are pleased to note the
progress and initial conclusions announced today by Castillo
following the field trip work undertaken at the Picasso Project. We
look forward to further progress."
Overview
Lithium Technologies Pty Ltd ("LT") and Lithium Supplies Pty Ltd
("LS"), in which Cadence owns a 29% shareholding, each own 50% of
Synergy Prospecting Pty Ltd ("Synergy") and have granted , as
announced on 29 September 2021, Castillo a 90-day option to acquire
100% of the outstanding shares of LT and LS and by implication 100%
of Synergy.
During this 90-day period, Castillo will be conducting due
diligence on all three entities to ensure the underlying assets are
in good standing and there are no material adverse issues. Under
the terms of the option agreement, Castillo can exercise its right
to acquire LT, LS and Synergy at any time during the 90-day
period.
Castillo Copper Limited is an Australian-based explorer
primarily focused on copper across Australia and Zambia. The group
is embarking on a strategic transformation to morph into a mid-tier
copper group underpinned by its core projects:
-- A large footprint in the in the Mt Isa copper-belt district,
north-west Queensland, which delivers significant exploration
upside through having several high-grade targets and a sizeable
untested anomaly within its boundaries in a copper-rich region.
-- Four high-quality prospective assets across Zambia's
copper-belt which is the second largest copper producer in
Africa.
-- A large tenure footprint proximal to Broken Hill's
world-class deposit that is prospective for
zinc-silver-lead-copper-gold.
-- Cangai Copper Mine in northern New South Wales, which is one
of Australia's highest grading historic copper mines.
The primary assets of Synergy, which are wholly-owned, comprise
the Litchfield Lithium Project (EL31774) in NT and Picasso Lithium
Project (E63/1888) in WA. In addition, Synergy has an application
in NT - EL31828 - known as the Alcoota Lithium Project, which
comprises ground proximal to Alice Springs. Castillo will need to
undertake further geological due diligence on this application.
LT and LS also hold applications for six lithium properties in
San Luis Province, Central Argentina. Again, Castillo will need to
undertake further geological due diligence on these
applications.
Further details on these assets and all the applications and
permits are contained on our website here
Option terms & consideration
The terms of the 90-day option are as follows:
-- A$50,000 non-refundable deposit in cash on formally granting
the option that will go directly to Synergy for working capital
purposes.
Upon exercising the option within the 90-day period, the binding
consideration terms are as follows:
-- A$1m script payment in CCZ shares will become payable to the
Vendor Group based on the 14-day WVAP calculated from the date of
which the option agreement is announced to the ASX. Note, the
Vendor Group will be subject to a 6-month voluntary escrow period
for 50% of the shares and 12-months for the 50% balance from the
date of settlement. In addition, both parties agree to sign off on
a binding term sheet.
Incremental consideration terms are applicable if the following
milestones are achieved:
-- A$1m script payment in CCZ's shares to the Vendor Group based
on the 14-day WVAP if two drill-holes produce assayed intercepts
greater or equal to a true width of at least 10m @ 1.3% Li2O.Note,
the two holes will be at least 100m apart, but not greater than
200m.
-- A$1m script payment in CCZ's shares to the Vendor Group based
on the 14-day WVAP if a JORC compliant total inferred resource of
at least 7Mt @ 1.3% Li2O is modelled by SRK Consulting.
-- In the event of commercial mining operations commencing a 2%
NSR will be payable to the nominees of the facilitator.
- Ends -
For further information: Cadence
Minerals plc +44 (0) 7879 584153
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)
James Joyce +44 (0) 207 220 1666
Darshan Patel
Novum Securities Limited (Joint Broker)
Jon Belliss +44 (0) 207 399 9400
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to
be forward-looking statements. Forward-looking statements are
identi ed by their use of terms and phrases such as "believe"
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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 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 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.
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