29 Sep 2021 07:01
Cadence Minerals Plc
("Cadence Minerals", "Cadence")
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Option Granted to Castillo Copper (ASX/LON:聽CCZ) to Acquire the Litchfield and Picasso Lithium Projects in Australia.
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Cadence聽Minerals聽(AIM/NEX:聽KDNC;聽OTC:聽KDNCY)聽is聽pleased聽to聽announce聽that聽Castillo聽Copper聽(ASX/LON:聽CCZ)聽("Castillo")聽has聽entered聽into聽a聽90-day聽option聽agreement聽with聽Lithium聽Technologies聽Pty聽Ltd聽("LT")聽and聽Lithium聽Supplies聽Pty聽Ltd聽("LS"),聽in聽which聽Cadence聽owns a聽29%聽shareholding,聽to聽acquire聽-聽subject聽to聽due聽diligence聽-聽the聽Litchfield聽and聽Picasso聽Lithium聽Projects聽in聽the聽Northern聽Territory聽(NT)聽and聽Western聽Australia聽(WA)聽respectively.
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Highlights:
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路 ASX and London listed Castillo has a 90-day option to acquire - subject to due diligence - the聽Litchfield聽and聽Picasso聽Lithium聽Projects.
路 Consideration for 100% of the holding companies which hold these assets (plus others) is up to AUS$ 3 million in equity of Castillo.
路 Castillo is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects.
路 The Litchfield Lithium Project is contiguous to Core Lithium's (ASX: CXO) strategic Finniss聽Lithium聽Project聽which聽has聽JORC聽compliant聽ore聽reserves聽(7.4Mt聽@聽1.3%聽Li2O),聽with聽production聽slated to start in 2H 20221. There is potential for lithium pegmatite bodies along Litchfield's聽north-west聽boundary.
路 The Picasso Lithium Project in WA is proximal to Liontown's Resources' (ASX: LTR) Buldania聽Project,聽with聽a聽JORC聽compliant聽resource聽at聽14.9Mt聽@聽0.97%聽Li2O3 and聽has聽mapped聽pegmatites聽that聽potentially聽host聽lithium聽mineralisation.
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Cadence CEO Kiran Morzaria added: "The potential acquisition by Castillo provides Cadence with an exposure to developing copper assets which complements our already substantial lithium portfolio. Moreover, given Castillo's established in country leadership and cash position we see this potential acquisition by Castillo as the best strategic approach to maximize returns for our shareholders.聽We聽look聽forward聽to聽seeing聽Castillo聽develop聽these聽assets聽further."
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Castillo's Managing Director Simon Paull commented: "Acquiring prospective lithium projects, which聽complement聽the聽copper聽assets,聽arguably聽provides聽Castillo聽with聽a聽strong聽comparative聽advantage聽moving聽forward. In focusing on developing copper and lithium projects, the Board is positioning Castillo to聽potentially create significant incremental value from the transition towards renewable energy sources聽and聽accelerating聽demand聽for聽electric聽vehicles聽globally."
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Overview
LT聽and聽LS聽each聽own聽50%聽of聽Synergy聽Prospecting聽Pty聽Ltd聽("Synergy") and聽have聽granted聽Castillo聽a聽90-day聽option聽to聽acquire聽100%聽of聽the聽outstanding聽shares聽of聽LT聽and聽LS聽and聽by聽implication聽100%聽of聽Synergy.
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During this 90-day period, Castillo will be conducting due diligence on all three entities to ensure the聽underlying assets are in good standing and there are no material adverse issues. Under the terms of聽the聽option聽agreement,聽Castillo聽can聽exercise聽its聽right聽to聽acquire聽LT,聽LS,聽and聽Synergy聽at聽any time聽during聽the聽90-day聽period.
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Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects:
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路 A large footprint in the in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region.
路 Four high-quality prospective assets across Zambia's copper-belt which is the second largest copper producer in Africa.
路 A large tenure footprint proximal to Broken Hill's world-class deposit that is prospective for zinc-silver-lead-copper-gold.
路 Cangai Copper Mine in northern New South Wales, which is one of Australia's highest grading historic copper mines.
The聽primary聽assets聽of聽Synergy,聽which聽are聽wholly owned,聽comprise聽the聽Litchfield聽Lithium聽Project聽(EL31774) in NT and Picasso Lithium Project (E63/1888) in WA. In addition, Synergy has an application聽in NT - EL31828 - known as the Alcoota Lithium Project, which comprises ground proximal to Alice聽Springs.聽Castillo聽will聽need聽to聽undertake further聽geological聽due聽diligence聽on聽this聽application.
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LT and LS also hold applications for six lithium properties in San Luis Province, Central聽Argentina.聽Again,聽Castillo聽will聽need聽to聽undertake聽further聽geological聽due聽diligence聽on聽these聽applications.
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Further details on these assets and all the applications and permits are contained on our website here
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Option聽terms聽&聽consideration
The terms of the 90-day option are as follows:
路 A$50,000 non-refundable deposit in cash on formally granting the option that will go directly to Synergy for working capital purposes.
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Upon exercising the option within the 90-day period, the binding consideration terms are as follows:
路 A$1m script payment in CCZ shares will become payable to the Vendor Group based on the 14-day WVAP calculated from the date of which the option agreement is announced to the ASX. Note, the Vendor Group will be subject to a 6-month voluntary escrow period for 50% of the shares and 12-months for the 50% balance from the date of settlement. In addition, both parties agree to sign off on a binding term sheet.
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Incremental consideration terms are applicable if the following milestones are achieved:
路 A$1m script payment in CCZ's shares to the Vendor Group based on the 14-day WVAP if two drill-holes produce assayed intercepts greater or equal to a true width of at least 10m @ 1.3% Li2O.Note, the two holes will be at least 100m apart, but not greater than 200m.
路 A$1m script payment in CCZ's shares to the Vendor Group based on the 14-day WVAP if a JORC compliant total inferred resource of at least 7Mt @ 1.3% Li2O is modelled by SRK Consulting.
路 In the event of commercial mining operations commencing a 2% NSR will be payable to the nominees of the facilitator.
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-聽Ends聽-
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For further information: Cadence Minerals plc | 聽 +44 (0) 7879 584153 |
Andrew Suckling | 聽 |
Kiran Morzaria | 聽 |
WH Ireland Limited (NOMAD & Broker) James Joyce | +44 (0) 207 220 1666 |
Darshan Patel | 聽 |
Novum Securities Limited (Joint Broker) Jon Belliss | +44 (0) 207 399 9400 |
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Qualified聽Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this聽announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School聽of聽Mines聽and聽an聽MBA聽(Finance)聽from聽CASS聽Business聽School.
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Forward-Looking聽Statements:
Certain statements in this announcement are or may be deemed to be forward-looking statements.聽Forward-looking statements are identi铿乪d by their use of terms and phrases such as ''believe'' ''could''聽"should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or聽comparable expressions including references to assumptions. These forward-looking statements are聽not聽based聽on聽historical聽facts聽but聽rather聽on聽the Directors'聽current聽expectations聽and聽assumptions聽regarding Cadence Minerals Plc's future growth results of operations performance future capital and聽other聽expenditures聽(including聽the聽amount.聽nature聽and聽sources聽of聽funding聽thereof)聽competitive聽advantages聽business聽prospects聽and聽opportunities.聽Such聽forward-looking聽statements聽re铿俥ct聽the聽Directors' current beliefs and assumptions and are based on information currently available to the聽Directors. Many factors could cause actual results to differ materially from the results discussed in the聽forward-looking statements including risks associated with vulnerability to general economic and聽business聽conditions聽competition聽environmental聽and聽other聽regulatory聽changes聽actions聽by聽governmental聽authorities the availability of capital markets reliance on key personnel uninsured and underinsured聽losses and other factors many of which are beyond the control of Cadence Minerals Plc. Although any聽forward-looking聽statements聽contained聽in聽this聽announcement聽are聽based聽upon聽what聽the聽Directors
believe聽to聽be聽reasonable聽assumptions.聽Cadence聽Minerals聽Plc聽cannot聽assure聽investors聽that聽actual聽results聽will聽be聽consistent聽with聽such聽forward-looking聽statements.