22 March 2018
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Exploration Programme on Lithium Assets in Argentina Commences
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) announced on 11 December 2017 that it had entered into binding agreements to acquire up to 100% of six high-quality lithium assets in Argentina. The Company is now delighted to inform shareholders that the initial exploration programme on these assets in the San Luis Province has started.
HIGHLIGHTS
· Detailed desktop and remote exploration started over 55,773 hectares within the known spodumene bearing pegmatite fields in San Luis Province, Central Argentina.
· Work includes high-resolution satellite imagery interpretation to map pegmatites or other potential lithium bearing host rock.
· The pegmatite fields of San Luis have an important past record of producing mica, beryl, spodumene, tantalite (tantalum oxide), columbite (niobium oxide), and recently potassium feldspar, albite and quartz.
· Based on results we will develop a ranked target list of prospective pegmatites for further exploration, sampling and drilling.
· Cadence has completed Stage 1 of the 5-stage timetable to acquire up to 100% of the assets.
The Initial exploration programme which is targeted to complete in approximately 4-6 months, has been designed to provide the Company with a thorough understanding of the pegmatite geology and extent of lithium mineralisation.
The first part of this programme consists of detailed desktop work that is undertaken remotely, which is followed up by field work to reconcile the findings and identify key pegmatite targets. At the conclusion of this process and upon regulatory approval, the exploration program will move into sampling these targets and, if successful, exploratory drilling and the definition of mineral resources.
Kiran Morzaria, Chief Executive Officer, added:
"We are very excited to have started exploration on the San Luis lithium prospects. The initial remote exploration expects to identify pegmatites that are exposed at the surface, which will provide low-cost exploration targets for sampling and, if appropriate, drilling."
"Our long-term goal is to identify, explore and develop a substantial hard rock lithium resource, in a country with an established lithium industry, good infrastructure and supportive regulatory and fiscal regimes. We will update shareholders on the exploration programme as we advance up the development curve. "
Desktop and fieldwork
The desktop and field work the geology team are undertaking is comprehensive and leverages high-tech equipment to the fullest extent. Key steps involved in the desktop review comprise the following:
· Review all legacy reports that mention lithium mining and other minerals (beryl, tourmaline, muscovite, garnets) in Sans Luis, as this data can help determine the evolution of pegmatites in the area;
· Use satellite imagery to map pegmatites/granite/other rocks of interest then determine accessibility from current road network and digitalise the information;
· Identify pegmatites that are near known lithium mineralisation and historic mines then double check geophysics and radiometry to ensure they are viable targets;
· From this data, calculate the number of prospective pegmatites in the area; and
· Assess infrastructure requirements, especially accessibility on how to transport drilling equipment to prospective future areas of interest.
Upon completion of the desktop review, the geology team will visit pegmatites that are readily accessible to undertake field work. After all the field work data is collected, it will be reconciled with the geophysical and satellite imagery findings. This will enable the geology team to develop its sampling and XRF programme focused on the pegmatites with the highest probability of containing high-grade lithium mineralisation.
The next stage in the process will be securing regulatory approval to further the exploration programme.
Ownership
Cadence can acquire 100% of the interest in the exploration permits under application and will initially earn 49% via staged investments of cash spent on exploration and development and the issue of new ordinary shares in Cadence. Cadence has completed Stage 1 of the investment and currently indirectly owns 4% of the exploration permits under application.
Details of the commitments under the acquisition agreement with the vendors are summarised below
Stage |
Ownership % |
Total Ownership % |
Lithium Technologies Pty Ltd |
Lithium Supplies Pty Ltd |
Purpose |
Stage 1 |
4% |
4% |
£0.05 M |
£0.05 M |
Earn-in early non-invasive exploration (pre -exploration permits being granted) |
Stage 2 |
20% |
24% |
95,153,846 shares in Cadence |
57,692,308 shares in Cadence |
On grant of exploration permits - acquisition of Lithium Technologies and Lithium Supplies shares |
Stage 3 |
7.5% |
31.5% |
£0.15 M |
£0.15 M |
Earn - in on commencement of exploration works after grant exploration permits |
Stage 4 |
17.5% |
49% |
£0.35 M |
£0.35M |
Earn - In on identification of suitable drill targets |
Stage 5 |
51% |
100% |
480,769,231 shares in Cadence |
192,307,692 shares in Cadence |
1-year option to acquire all the outstanding share capital of Lithium Technologies and Lithium Supplies |
The vendors of the assets will retain a 1.5% net smelter royalty on products produced from the assets. The royalty will be deferred and only become payable upon the repayment of the capital and any debt associated with establishing a mineral processing facility.
- Ends -
For further information, please contact. |
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Cadence Minerals plc |
+44 (0) 207 440 0647 |
Andrew Suckling |
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Kiran Morzaria |
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WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
James Joyce |
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James Sinclair-Ford |
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Hannam & Partners LLP (Joint Broker) |
+44 (0) 207 907 8500 |
Neil Passmore |
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Giles Fitzpatrick |
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Square1 Consulting |
+44 (0) 207 929 5599 |
David Bick |
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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.
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 £20 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.
