Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that it has entered into a binding agreement to sell its working interests in the Yangibana Rare Earths project tenements to
Cadence's 30% interest in tenements covers a small portion of Yangibana and potentially represents one year of the 16-year mine life.
Highlights
Cadence has agreed to sell its 30% working interest in the
The sale is to be satisfied by the issue of fully paid ordinary Hastings shares
This transaction provides Cadence with equity exposure to 100% of the
The NPV of the
Background
The interests will be sold for
As a consequence of the acquisition, Cadence will become a shareholder of Hastings. Hastings is developing the
Hastings has commenced site construction and is planning to commence commissioning of the beneficiation plant in late 2023, with the delivery of maiden production to key customers in 2024.
In February of this year, Hastings published a revised NPV calculation, which increased the NPV by 84% to AS$ 1 billion. Hasting's current market capitalisation is circa
Cadence CEO
We look forward to reporting on Hastings development and progress towards production as construction on the mine commences.'
Commercial Terms
The following represent the key binding commercial terms for Hastings to acquire the 30% working interest in certain tenements and general-purpose licences held by
Issue price - equal to the volume-weighted average price (VWAP) of the Hastings shares in the 30 trading days before settlement.
Escrow - the Consideration Shares will be subject to a voluntary escrow for up to 12 months from issue
Conditions precedent limited to execution of documents to give effect to the binding term sheet, Hastings having issued and applied to the ASX for the quotation of the Considerations Shares and any necessary approvals being received.
Settlement to occur five days after conditions precedent have been met.
Conditions precedent to be completed within 180 days; otherwise, either party may terminate the binding term sheet.
General representations, warranties and indemnities for an agreement of this nature.
The net loss attributable to our 30% holdings in the tenements for
As outlined above, the Consideration Shares will be subject to a voluntary escrow of up to 12 months from issue. During that time, the price of Hastings public equity may vary and result in either higher or lower profitability. After the lapse of the escrow arrangement, Cadence will retain or dispose of these shares as per our investment strategy, which is available here.
Contact:
Tel: +44 (0) 7879 584153
Forward-Looking Statements
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as 'believe' 'could' 'should' 'envisage' 'estimate' 'intend' 'may' 'plan' 'will' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
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