RE: Cadence Minerals: From REM plc days to present & what happens next, 2.8.2331 Aug 2023 22:23
KDNC RNS, 31 AUG 2023 -SONORA UPDATE
Per the RNS, the licences have been taken back although not final if I read it correctly.
The info I got was accurate: "MEXICO NEGOTIATING RECOVERY OF LITHIUM CONCESSIONS."-BNAmericas,
25 Jan 2023. The name of the co was not named but there can be no other co except Ganfeng who owns the Sonora project +30% JV with KDNC.
FINANCING OF SONORA
"Mexico values it Sonora lithium deposits at $600bn."-Mining.com, 22 Sep 2022.
It is going to take deep pockets to develop SONORA especially the technology.
The technology is the main bug bear as clay deposits in commercial quantities is not going to be that easy.
"TESLA eyes Mexico expansion, earmarking new export hub NEAR SONORA LITHIUM DEPOSIT."-Proactive Investors, 1 Feb 2023.
Conclusion:
1] At its height, REM plc under DL at 2.25p had a mkt cap of £95m.
According to DL, it was correct now proven that it could be taken over at some $400m if a past takeover was a benchmark.
So, what went wrong? As Seeking Alpha stated that once REM got TESLA as an off-take partner, then
FINANCING would be much easier with banks.
DL had in recent times revealed that the board was NOT in fa vour.
But after the takeover of BCN, Ganfeng was going to sell to Tesla the lithium!!!
Shareholders rejected REM plc's £1 takeover offer and when finally taken over it was some 45p headline.
Also, shareholders of BCN had said tis and that and in the end, the takeover price was 1/2 of REM's offer.
Kiran Mozario, CEO of KDNC recently said in an interview that had REM plc taken over Sonora, IT WOULD HAVE BEEN IN PRODUCTION BY NOW. Then, of course, with a mine going, any takeover would be much more difficult
as mine licence would have been granted and it would go to international tribunal if it got taken ie it is an asset.
Shareholders of BCN were not happy with the takeover price and thought it was worth 10x more and related this to a newspaper but they forgot that it was at risk by then from nationalisation.
Well, at least we know the end of this story and will have to wait until there is further development if any.
I regret posting on this forum as I did not like to post some commercial reality given that at that stage, the price had risen and if REM'ers wanted an exit at par, they could do so. Many AIM co's lack liquidity these days as many have left
buying AIM stocks and the stock market itself has been very volatile in the last few years.