TIDMKDNC
RNS Number : 5137Z
Cadence Minerals PLC
15 December 2017
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Bacanora Minerals Update - Strategic Cornerstone Investor &
Offtake Agreement
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
announce that Bacanora Minerals Ltd ('Bacanora', AIM: BCN, TSXV:
BCN) has today announced that NextView Capital ('NextView'), a
leading Chinese institutional fund management group focused on new
technologies and energy, has agreed to acquire a 19.89% equity
interest (non-diluted) in Bacanora via the placement of 32,976,635
common shares in the Company at a price of 94.53 pence
(approximately C$1.6223) per share. The GBP31,172,813
(approximately C$53,498,000) capital raised by the Placing will be
used for the continued development of Bacanora's Sonora Lithium
Project.
In addition, Bacanora has agreed to supply NextView with
5,000tpa of lithium carbonate produced at its Sonora Project in
Mexico ('Sonora' or 'the Project') on a best endeavours basis at
market prices from its Stage 1 of production, with a firm
commitment to supply 8,000tpa of lithium carbonate during Stage 2
and a best endeavours promise to supply a further 7,000tpa during
Stage 2. NextView has also agreed to employ its reasonable
endeavours to assist Bacanora in procuring project debt financing
for Sonora.
Bacanora has also reported that, In view of the size of the
opportunity provided by the Chinese and Japanese markets for
lithium, Bacanora intends to commence a review of the parameters of
its planned two-stage operation at Sonora with a view to increasing
Stage 1 from 17,500tpa.
Highlights:
-- New Institutional Investor agrees to acquire 19.89% interest in Bacanora
-- Follows highly favourable Feasibility Study which estimated an NPV8 of US$1.253 Billion
-- Provides entry into key Chinese market
Bacanora is a lithium exploration and development company. On
completion of the placing Cadence will have approximately 7% of
Bacanora's equity and a 30% stake in the Mexalit S.A. de CV
("Mexalit") joint venture which forms part of the Sonora Lithium
Project in Northern Mexico.
The full Bacanora announcement can be found at:
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13466569.html
Kiran Morzaria, Chief Executive Officer of Cadence,
commented:
"The announcement of the positive feasibility study and the
addition of a cornerstone investor in one week show excellent
progress is being made in the development of the Sonora lithium
project. Critically via the offtake agreement associated with this
investment, Sonora lithium carbonate product will gain a foothold
into the Chinese market, which represents one of the largest growth
areas for the electric vehicles and associated demand for battery
grade lithium carbonate."
"We look forward to hearing further updates from Bacanora as
they progress the development of the project in the coming year. In
particular, we look forward to the results of the review in which
Bacanora plan to increase the production in stage 1"
The Sonora Lithium Project and Details of Cadence's
ownership:
On completion of the placing by Bacanora Cadence Minerals will
hold approximately 7% of the equity in Bacanora Minerals and 30% of
Mexalit and Megalit joint venture companies. Mexalit is the owner
of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral
concessions. These concessions form part of the Sonora Lithium
Project as assessed in the FS published a Summary of which has been
published today by Bacanora.
Megalit does not form part of the Sonora Lithium Project and
does not form part of the FS released by Bacanora.
The direct and indirect interests of Cadence in the Sonora
Lithium Project and other mineral concessions in the Sonora
province are as follows:
- La Ventana and La Ventana 1, which are 100 percent owned by
Minera Sonora Borax S.A. de C.V.("MSB"), a wholly-owned subsidiary
of Bacanora; Cadence, through its direct interest of approximately
7% of Bacanora, has an indirect interest in these concessions of
approximately 7%.
- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions,
which are held by Mexilit S.A. de C.V. ("Mexilit"). Cadence has a
30% direct interest in Mexalit through its Joint Venture with
Bacanora, and when combined with Cadence's direct interest of
approximately 7% in Bacanora, has a total economic interest in
Mexalit of approximately 35%.
- Buenavista, San Gabriel and Megalit concessions, which are
held by Megalit S.A. de C.V. ("Meglait"). Cadence has a 30% direct
interest in Megalit through its Joint Venture with Bacanora, and
when combined with Cadence's direct interest of approximately 7% in
Bacanora, has a total economic interest in Megalit of approximately
3%.
-Ends -
For further information,
please contact.
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
Hannam & Partners LLP
(Joint Broker) +44 (0) 207 907 8500
Neil Passmore
Giles Fitzpatrick
Square1 Consulting +44 (0) 207 929 5599
David Bick
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world.
The planet needs rechargeable batteries on a global scale -
upcoming supersized passenger vehicles, lorries and buses - require
lithium and other technology minerals to power their cells. Cadence
is helping find these minerals in new places and extracting them in
new ways, which will meet the demand of this burgeoning market.
With over GBP25 million vested in key assets globally, Cadence is
helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining
projects. Its primary strategy is taking significant economic
stakes in upstream exploration and development assets within
strategic metals. We identify assets that have strategic cost
advantages that are not replicable, with the aim of achieving lower
quartile production costs. The combination of this approach and
seeking value opportunities allows us to identify projects capable
of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing,
fund management and deal structuring knowledge and experience, that
is supported by access to key marketing, political and industry
contacts. These resources are leveraged not only in our investment
decisions but also in continuing support of our investments,
whether it be increasing market awareness of an asset, or advising
on product mix or path to production. Cadence Mineral's goal is to
assist management to rapidly develop the project up the value curve
and deliver excellent returns on its investments.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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