RE: KDNC buying1 Aug 2019 15:09
CADENCE TWEET
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update published today by Bacanora Lithium (AIM:BCN) (“Bacanora”) on its Investment Agreement and Offtake Agreement (‘the Strategic Investment’ or ‘the Agreements’) with leading global lithium company Ganfeng Lithium Co., Ltd. (“Ganfeng” or “GFL”). As announced on 28 June 2019, the signed Agreements have been submitted to the relevant authorities in China for approval and completion. The first of the approvals, from the PRC Ministry of Commerce, has now been received. The remaining two approvals required ahead of completion of the Strategic Investment are currently being processed by Ganfeng and further updates will be provided as the approval process proceeds.
Bacanora is a lithium exploration and development company. Cadence holds 30% of Mexalit and Megalit joint venture companies and approximately 0.5% of Bacanora’s equity. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico.
Completion of the Strategic Investment would form a major part of the Bacanora’s finance package for an initial 17,500 tonnes per annum lithium carbonate operation at the large scale, high grade Sonora Project in Mexico. For further details of the Agreements please refer to the Company’s announcement on 20 May 2019, however the key terms of the Strategic Investment are provided below:
Summary of Key Terms of the Ganfeng Strategic Investment:
GFL to acquire 29.99% of Bacanora
GFL to acquire 22.5% of Sonora Lithium Ltd (“SLL”), the holding company for the Sonora Lithium Project
Additional long-term offtake at a market-based price per tonne
50% of Stage 1 lithium production
Up to 75% of Stage 2 lithium production
About GFL
GFL is the world’s third largest and China’s largest lithium compounds producer and the world’s largest lithium metals producer in terms of production capacity as of 31 December 2017, according to CRU International Limited. GFL’s operations are vertically integrated, encompassing all critical stages of the value chain, including upstream lithium extraction, midstream lithium compounds and metals processing as well as downstream lithium battery production and recycling. GFL has one of the most comprehensive product offerings split into five major categories of more than 40 lithium compounds and metals products.
The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/14171449.html
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Restructuring of Outstanding Loan Note
As announced on the 15 July 2019 Cadence had restructured two of its three outstanding Amortising Loan Notes (http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2842635) and was finalising terms to fund the b
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