REM>KDNC: A new beginning?17 Mar 2019 11:56
Bacanora Lithium [BCN] has been the subject of much discussion since the Reuters article a few days ago.
Hence, the Sonora lithium project in Mexico is awaiting f u n d i n g of some $400m. From the Matzatlanpost article on this forum some days ago, I quote that Sonora could be the 4th largest [when the mine is up] and that the resources would last 300 years.
This was where REM started - our Founder financed the early drills etc via REM. There is now little doubt that the Sonora Lithium project is a world class project which THEN could supply 10% of the global market [please go to London South East REM to see the This is Money article on REM/BCN for this quote to check]. This is history now.
REM wanted to takeover BCN at 88.5p but that was rejected.
So, REM has been in a lull period.
Lately, Allan Green of Brand gave an interview a few days ago re: Cadence Minerals plc [KDNC]. He said they were selling their BCN shares to pay for the 3 Australian lithium assets which could be up to 100%, one of which is near the High Profile Bald Hill, Western Australia. The other two are in NT, Australia, one of which is near CXO*s Finnis lithium [thanks to kenwrong on advfn for this info].
Kiran Mozario, CEO of Cadence [KDNC] did say in his interview re: acquisition of 3 Australian assets, that the co will have its destiny in its own hands.
This will mark a CHANGE completely from the Sonora lithium project [% of shares held + 30% JV] that first gave birth to REM [Rare Earth Minerals plc].
KDNC is listed as an investment co. Had the takeover been successful, REM may have had to change its official status just like UKOG plc, from investment co to an operating co.
So, this is a change in strategy.
Mr Green then goes on to mention EMH {European Metals Holdings] of which KDNC owns some 20% [+-] with an NPV of $540m and the resource could increase?
So, I assume from this that EMH is also reaching the more advanced stages after PFS, just like BCN but somewhat behind currently.
I am not up on how much of the loan has to be serviced etc and therefore, mark to mkt shares are sold etc?
So, in this potential new direction, it appears that there is a change of strategy - from taking stakes in % terms and 2 JV to move ahead with up to 100% owned projects.
It goes beyond this discussion - one has to wait to see what happens in the near future as evidenced by RNS.
May I also clarify that I take extra precaution NOT to summise from the Reuters article re: Southern Copper that BCN is the co they are talking about. When it is posted in black and white ie assumptions etc, any newbie reading it might just jump to it. One might then find that the post is quoted and relied upon? Hence, Reuters themselves understand this principle and did NOT name the co. I understand this principle, hence MY precaution and to wait for official confirmation from the co itself VIA a Regulatory New Service announcement [RNS].
Sun 17 Mar 2019
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