TIDMKDNC
RNS Number : 3495N
Cadence Minerals PLC
29 September 2021
Cadence Minerals Plc
("Cadence Minerals", "Cadence")
Option Granted to Castillo Copper (ASX/LON: CCZ) to Acquire the
Litchfield and Picasso Lithium Projects in Australia.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
announce that Castillo Copper (ASX/LON: CCZ) ("Castillo") has
entered into a 90-day option agreement with Lithium Technologies
Pty Ltd ("LT") and Lithium Supplies Pty Ltd ("LS"), in which
Cadence owns a 29% shareholding, to acquire - subject to due
diligence - the Litchfield and Picasso Lithium Projects in the
Northern Territory (NT) and Western Australia (WA)
respectively.
Highlights:
-- ASX and London listed Castillo has a 90-day option to acquire
- subject to due diligence - the Litchfield and Picasso Lithium
Projects.
-- Consideration for 100% of the holding companies which hold
these assets (plus others) is up to AUS$ 3 million in equity of
Castillo.
-- Castillo 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.
-- The Litchfield Lithium Project is contiguous to Core
Lithium's (ASX: CXO) strategic Finniss Lithium Project which has
JORC compliant ore reserves (7.4Mt @ 1.3% Li2O), with production
slated to start in 2H 20221. There is potential for lithium
pegmatite bodies along Litchfield's north-west boundary.
-- The Picasso Lithium Project in WA is proximal to Liontown's
Resources' (ASX: LTR) Buldania Project, with a JORC compliant
resource at 14.9Mt @ 0.97% Li2O3 and has mapped pegmatites that
potentially host lithium mineralisation.
Cadence CEO Kiran Morzaria added: "The potential acquisition by
Castillo provides Cadence with an exposure to developing copper
assets which complements our already substantial lithium portfolio.
Moreover, given Castillo's established in country leadership and
cash position we see this potential acquisition by Castillo as the
best strategic approach to maximize returns for our shareholders.
We look forward to seeing Castillo develop these assets
further."
Castillo's Managing Director Simon Paull commented: "Acquiring
prospective lithium projects, which complement the copper assets,
arguably provides Castillo with a strong comparative advantage
moving forward. In focusing on developing copper and lithium
projects, the Board is positioning Castillo to potentially create
significant incremental value from the transition towards renewable
energy sources and accelerating demand for electric vehicles
globally."
Overview
LT and LS each own 50% of Synergy Prospecting Pty Ltd
("Synergy") and have granted 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"
"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 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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END
MSCGUGDCUUDDGBC
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September 29, 2021 02:01 ET (06:01 GMT)
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