Macarthur Strikes Additional Rail Haulage Deal

Cadence Minerals Plc

("Cadence Minerals", "Cadence")

Macarthur Minerals (TSX-V: MMS, ASX: MIO) Strengthens DSO Export Position in the Yilgarn Region With Additional Rail Haulage Deal.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (TSX-V: MMS) (ASX: MIO) (the "Company" or "Macarthur") has announced that it has agreed terms with Aurizon ("Aurizon"), for the transport of direct shipment ore (DSO) at a rate of up to 500,000 tonnes per annum between West Kalgoorlie and Kwinana.

Macarthur's combined rail position now extends the Company's potential access to rail haulage capacity in Western Australia to almost 1 million tonnes over the next 12 months, and up to 2.1 million tonnes in aggregate over 4 years, subject to securing matching port access.

Increasing Macarthur's aggregated rail access is critical to accelerating the Company's early revenue objectives. The maximising of rail capacity is subject to successfully securing matching capacity at Fremantle and Esperance ports.

The Company's continued incremental approach to building rail access is both deliberate and strategic as it seeks to maximise opportunities for the export of iron ore products at the earliest available opportunity.

Key Agreement Terms

The rail haulage agreement with Aurizon requires the transport of a minimum of 450,000 tonnes over a term of 12 months and is subject to satisfaction of certain conditions precedent (which include Macarthur securing matching port access on commercially acceptable terms, and Aurizon achieving a number of regulatory approvals).

Enhancing the Pathway for Export

The agreement with Aurizon increases Macarthur's potential contracted rail capacity in Western Australia to just under 1 million tonnes over the next 12 months (and up to 2.1 million tonnes in aggregate over the next 4 years).

Aurizon's Bulk business is the largest transporter of Iron Ore outside the Pilbara. Rail Capacity is an important link in an emerging transport solution that will enable Macarthur to take advantage of the strong iron ore pricing conditions and target early revenue generation in the current commodity cycle. Macarthur's early revenue generation targets include the export of GWR's DSO products whilst the Company completes its planning mining, production and export of a DSO product from Ularring at the earliest available opportunity.

DSO and Magnetite Project Financing to be Accelerated

With Macarthur's various production strategies now gaining material traction, the Company is determined to accelerate its project financing.

Anticipated cash inflows from Warrants

During the course of September and December this year, a material number of in-the-money warrants are anticipated to be exercised. Those warrant holders electing to exercise will be delivered an opportunity to consolidate their position, and this will in turn, provide the Company with funds to support the pursuit of revenue generating activities.

DSO Funding

In response to material milestones being achieved on project and logistics planning, Macarthur now intends to accelerate arrangements for project financing to support DSO mining operations at Ularring. Management has already advanced its pre-planning over the course of the last several months, and a funding process (at a yet to be determined future price) to support the debt/equity capital requirements for the DSO mining operations is being progressed.

The Company is intending to open formal negotiations for mandates for the purpose of settling the engagements and structuring for the raise of required debt/equity funding to support future DSO mining operations.

Magnetite Funding

Finally, the Company intends to open negotiations for a mandate (or mandates) to secure an early, conditional equity and debt funding deal that will enable Macarthur to progress towards first magnetite production following delivery of the current Feasibility Study. Part of this funding would be allocated to necessary pre-production activities to streamline the delivery of the magnetite project. Opportunities for an early combined funding solution that can support both the planned DSO mining operations and financing of magnetite mining operations through to first production are being actively pursued.

The acceleration of Macarthur's financing strategy is now firmly in motion as it strengthens its resolve to transition into production as quickly as possible.

Andrew Bruton, CEO of Macarthur Minerals commented: "This agreement has the potential to increase Macarthur's overall access to rail haulage capacity and enhances the foundations for the Company's ambitions to commence iron ore exports as soon as possible. It is another pleasing step towards realising our objective to transition to revenue generating activities and Macarthur is delighted to be partnering with Aurizon. With continued diligence, resolve and respectful engagement with key stakeholders, we remain very optimistic that it is now not a matter of if, but when, the Company will finally conclude the balance of the necessary arrangements that will enable it to commence moving and exporting iron ore products. This is only the beginning of the next phase of Macarthur's journey - walk with us and discover something big."

Link here for the full announcement: https://finance.yahoo.com/news/macarthur-strengthens-dso-export-position-120000481.html

Cadence Minerals Holding in Macarthur

Cadence holds approximately 1% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.

This news release is not for distribution to United States Services or for Dissemination in the United States. 

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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.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified 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 reflect 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.