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Cadence Minerals PLC - London-based investment company focused on mineral resources sector - Enters conditional agreement to sell its 32% stake in Lithium Technologies and Lithium Supplies for AUD6.6 million, around GBP3.7 million.
The agreement is part of all shareholders in LT and LS deciding to sell the companies for AUD21.1 million in cash and shares.
LT and LS hold two prospective exploration licences and one exploration application in Australia and a further seven exploration licence applications in Argentina.
The unnamed purchaser is an unlisted Australian company, which will spend AUD4 million over three years on the exploration of the Litchfield lithium prospect in Australia.
The acquisition is conditional on due diligence and regulatory approval.
"For Cadence, this transaction is, we believe, an excellent balance of risk and reward. Firstly it provides an initial consideration that more than covers our book investment. Secondly, by partly paying the consideration in shares in the buyer and cash payment on milestones we are exposed the the exploration upside. Lastly, given the commitment of at least AUD4 million to explore the primary assets, this mitigates dilution to Cadence shareholders," said Chief Executive Officer Kiran Morzaria.
Current stock price: 16.84 pence
12-month change: down 21%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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