TIDMKDNC
RNS Number : 9628N
Cadence Minerals PLC
26 January 2023
Cadence Minerals Plc
("Cadence Minerals", "Cadence", or "the Company")
Listing of Evergreen Lithium on the Australian Stock
Exchange
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
announce that Evergreen Lithium Limited ("Evergreen") has filed its
admission Prospectus with Australian Securities & Investments
Commission and the Australian Stock Exchange ("ASX"). Cadence owns
approximately 15.8 million Evergreen shares which are anticipated
to represent 8.7% of the issued share capital of Evergreen on
admission. Evergreen's indicative timetable for admission is 10
March 2023.
Highlights:
Ø Evergreen Lithium has filed a listing and offering prospectus
with the ASX; the anticipated admission date is 10 March 2023.
Ø On admission, Cadence will own approximately 8.7% of
Evergreen, which at the offer price values Cadence's equity stake
at AS$ 3.96 million.
Ø Evergreen intends to advance three hard rock lithium
exploration projects in Australia.
Ø The flagship Byone Lithium Project covers the north-eastern
strike extent of the lithium-and tantalum endowed Bynoe Pegmatite
field;
o The project is adjacent to Core Lithium's producing lithium mine.
o Soil sampling on the project returned geochemical anomalies indicating lithium mineralisation.
o Based on soil sampling alone an initial five target zones have
been identified that contain lithium mineralisation.
Ø The second prospect, Kenny Lithium, is located within the
Dundas Mineral Field of Western Australia, close to Mt Dean and Mt
Belches-Bald Hill pegmatite fields'
o Initial field mapping on the project has confirmed the
presence of substantial outcropping pegmatites
o 10km zone of pegmatite outcropping has been confirmed in the
North-Eastern section of the Kenny Lithium Project
o Evergreen has recently completed a comprehensive auger
program, drilling 1,731 holes. Evergreen expects the results to be
available shortly after admission.
Cadence CEO Kiran Morzaria commented: "On behalf of the Cadence
board, I am pleased that our investment into Lithium Technologies
and Lithium Supplies have materialised into soon to be listed
Evergeen and its Byone and Kenny lithium projects. Once Evergreen
lists on the ASX market, it will add further value to Cadence's
rounded portfolio of listed lithium investment vehicles, which
include European Metals Holdings (AIM: EMH) and our Sonora Lithium
assets. Added to this, Cadence has exposure to the world class
Yangibana rare earths project through it's shareholding in Hastings
Technology Metals (ASX: HAS) and of course our flagship Amapa iron
ore project, the value of which was recently estimated with the
publication of a pre-feasibility study, associated post tax NPV and
maiden ore reserve declaration."
"Your board believes that considerable potential exists across
our assets to deliver further progress as we move forward in 2023.
I look forward to reporting back with further developments."
Background to Cadence's investment in Evergreen Lithium
Cadence Minerals received approximately 15.8 million shares in
Evergreen in July 2022 when Cadence sold its 31.5% stake in Lithium
Technologies and Lithium Supplies ("LT and LS") to Evergreen as
announced on 27 June 2022. This initial consideration was valued at
AS$ 3.16 million (GBP1.81 million). A further AS$ 6.63 million
(GBP3.80 million) shares in Evergreen are due to Cadence on the
achievement of certain performance milestones by Evergreen. Further
details of these milestones can be found in the Evergreen
prospectus available here . Cadence's shares may be subject to a
2-year escrow agreement as determined by the listing rules of the
ASX.
As of 31 December 2021, the total carrying values of LT and LS
in the Company's balance sheet was approximately GBP803,000. Based
on the anticipated admission price of Evergreen on the ASX,
Cadence's shares in Evergreen will be worth GBP2.27 million.
Evergreen Lithium
On acquiring LT and LS, Evergreen became the 100% owner of three
exploration tenements. The Bynoe Lithium Project and Fortune
Lithium Project (awaiting grant of exploration permit) are located
in the Northern Territory, and the Kenny Lithium Project is located
in Western Australia .
Evergreen is listing on the ASX to develop these projects
further and raise up to AS$ 7 million via a share offer. Evergreen
can advance its business model if the listing and the offer are
successful.
Byone Lithium Project
The Bynoe Lithium Project is Evergreen's flagship prospect.
Evergreen's primary focus is to explore and discover an
economically viable lithium resource for development. The Bynoe
Lithium Project is located south of Darwin in the Northern
Territory, Australia. It covers the north-eastern strike extent of
the lithium- and tantalum-endowed Bynoe Pegmatite Field.
The Bynoe Pegmatite Field is host to Core Lithium Ltd's (ASX:
CXO) (" Core Lithium" or " Core" ) high-grade Finniss lithium
deposit, which is adjacent to Core Lithium's producing lithium
mine. Core Lithium's deposit is just 1.2km from the Bynoe Lithium
Project. Soil sampling conducted on the Bynoe Lithium Project has
returned geochemical anomalies that indicate the lithium
mineralisation continues along the trend into the Company's Bynoe
Lithium Project. Based on the initial stages of soil sampling alone
(which only covers approximately 10-20% of the Bynoe Lithium
Project area, an initial five target zones have been identified
that contain lithium mineralisation. The Bynoe Lithium Project
covers an area of 231 km(2) , making Evergreen one of the largest
tenement holders within the central Bynoe Pegmatite Field after
Core Lithium.
In recent years, exploration activities within the Bynoe Field
have been focused on the discovery of economic lithium
mineralisation hosted in pegmatites, the most successful of which
has been Evergreen's neighbour, Core Lithium, which in a very short
time frame, has delineated a JORC mineral resource of 18.9mt at
1.32% Li 2 O at its Finniss Project. Core Lithium has achieved
excellent drilling intercepts at their BP33 prospect of 107 metres
at 1.70% Li 2 O , located within 1km of the Bynoe Lithium Project
and Core Lithium's Finniss (BP33) mine.
After listing and completion of its capital raise, Evergreen
intends to expand the geochemical soil sampling significantly. In
addition, Evergreen recently completed an Ambient Noise Topography
( "ANT" ) Survey and is currently awaiting its geophysical
interpretation. Core Lithium recently used ANT (refer to ASX
announcement Core Lithium, 1 August 2022, "BP33 drilling delivers
outstanding results"). Core noted the results were an "outstanding
success" and showed "excellent correlation" with known pegmatite
bodies that were already identified by drilling.
Once the baseline geochemical and geophysical data is collected,
Evergreen plans to systematically drill test the anomalies,
starting with the highest priority along strike from Core Lithium's
mineralised pegmatites.
Kenny Lithium Project
The Kenny Lithium Project is located within the Dundas Mineral
Field of Western Australia and 50km East of Norseman in the Eastern
Goldfields. It is close to the Mt Dean and Mt Belches-Bald Hill
pegmatite fields, and there are multiple significant lithium
discoveries located in close proximity to the Kenny Lithium
Project
The Kenny Lithium Project covers an area of 210 km(2) ,
providing Evergreen with a large and prospective land holding
within the Dundas mineral field.
The Kenny Lithium Project lies at the southern end of the
Norseman-Wiluna Granite Greenstone Belt within the Archaean Yilgarn
Craton. This is a well-known lithium-producing region/mineral field
and is host to the significant Mount Marion, Bald Hill and Baldania
mines, respectively, which are close to the Company's Kenny Lithium
Project.
Initial field mapping on the Kenny Lithium Project has confirmed
the presence of substantial outcropping pegmatites, whereby an
approximate 10km zone of pegmatite outcropping has been confirmed
in the North-Eastern section of the Kenny Lithium Project, which
significantly exceeds what has already been identified by the
Government Survey of Western Australia (GSWA).
Evergreen's goal is to explore and discover an economic lithium
resource for subsequent development. As with the Company's Bynoe
Lithium Project, minimal geochemical work has been undertaken
within the tenure; however, historical results have proven
encouraging. Evergreen has recently completed a comprehensive auger
program, drilling 1,731 holes. Evergreen expects the results to be
available following the listing. After that, the Company will
design a drill program to drill test any targets identified to be
prospective for lithium mineralisation and test the economic
potential.
Fortune Lithium Project
The Fortune Lithium Project (EL31828) is located in the Northern
Territory and is currently in its application phase and undergoing
Native Title procedures. Evergreen Fortune Lithium Project is
784.71km(2) and is located 150km northeast of Alice Springs, in the
Arunta region. The tenement itself has not been historically
explored for lithium.
The Fortune Lithium Project lies in the Mesoproterozoic Aileron
Province of the Arunta Region. The Arunta Region comprises a
sequence of Proterozoic rocks known to host tin-tantalum-tungsten
pegmatites. Historic pegmatite-hosted workings targeting
tin-tantalum and mica are recorded in the vicinity of the Fortune
Lithium Project area. There has been no exploration activity on the
Fortune Lithium Project tenement specifically. The Fortune Lithium
Project is currently in the application phase and is, therefore not
granted tenure.
For further information
contact:
Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD
& Broker) +44 (0) 207 220 1666
James Joyce
Darshan Patel
- Ends -
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to
be forward-looking statements. Forward-looking statements are
identi ed 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 re ect
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.
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
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END
UPDEAPFKAALDEEA
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January 26, 2023 03:26 ET (08:26 GMT)
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