See KDNC website27 Jun 2022 10:09
– Sale of Lithium Technologies and Lithium Supplies & Amapa project update Market Cap £18.6m Share Price 10.8p Cadence reports today that it has completed the sale of its 31.5% stake in in Lithium Technologies and Lithium Supplies (LT &LS) to Evergreen PTY Ltd; an unlisted Australian company which is intending to list on the Australian stock exchange. The deal: Cadence, and all LT and LS shareholders, have completed the sale of 100% of LT and LS for up to A$21.1m (£12.1m); Cadence, which owned 31.5% of LT and LS, has received A$3.2m (£1.8m) in Evergreen shares; subject to Evergreen achieving performance benchmarks Cadence would receive a total consideration of A$6.6m (£3.8m) and; Evergreen will spend a minimum of A$4m over the next three years on the exploration of the prospective Litchfield lithium prospect in Northern Australia. Based on the current expected share price of Evergreen, the initial profits on the sale of the equity stake in LT and LS is £1.0m, with the potential for this to increase to £3.0m should the performance milestones be achieved. At the Amapa iron ore project in Brazil, Cadence is prioritizing its Prefeasibility Study (PFS) with all significant contractors on site last month. Cadence expects firstly to publish a maiden reserve followed by the PFS. In addition, a heavy focus has been applied to the relevant environmental permitting, compliance with Brazilian legislation in relation to its Tailing Storage Facilities and implementing the policies, structures and controls required for a new developing company. Cadence is leaving nothing to chance in our opinion and applying solid principles to redeveloping the Amapa project. After the recent sale of its stake in some licences at Yangibana REE project to the operator Hastings Technologies (23.06.2022) Cadence continues to simplify its business. Today’s news turns an equity stake in a business which needed funding to one where funding should be available via a listing, and crucially it maintains an important stake in Australia’s booming spodumene lithium pegmatite sector. With news flow expected from Amapa shortly on development scale, economics and timing, Cadence is beginning to take control of its own destiny
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