Update - Auroch Minerals

RNS Number : 2458F

Cadence Minerals PLC

11 July 2019

 

Cadence Minerals Plc

("Cadence Minerals", "Cadence" or "the Company")

Auroch Minerals (ASX: AOU) - Acquisition of High-Grade Western Australian Nickel Projects.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement today from Auroch Minerals Limited (ASX: AOU) ("Auroch") that further to its market announcement on 28th May 2019 it has entered into a formal Share Sale Agreement with Minotaur Exploration Ltd (ASX:MEP, "Minotaur") to acquire 100% of the tenements known as the Saints Nickel Project (Saints) and the Leinster Nickel Project ("Leinster").

Key Commercials:

·      Auroch will acquire 100% of Saints and 100% of Leinster via the acquisition of certain wholly owned subsidiaries of Minotaur who hold the projects.

·    Completion of the acquisitions is conditional on the satisfaction or waiver of various conditions precedent including the parties obtaining all necessary shareholder approvals and obtaining any regulatory or other third-party approvals. Legal due diligence has now been completed by the parties.

·      Auroch and Minotaur mutually agreed to change the number of consideration shares to be issued on completion. The total consideration for the acquisition is 18,333,333 Auroch shares (which will result in Minotaur having a 15.2% undiluted ownership in Auroch).

·      The above consideration shares are subject to a voluntary escrow period of 12 months.

·    At completion, Minotaur may appoint one director to Auroch's board. This right will lapse if Minotaur's shareholding in Auroch is less than 4.9%.

·      Contemporaneous with the acquisition, Auroch has agreed to issue 1,833,333 ordinary shares to the party that introduced the acquisition.

·      A notice of meeting containing further details in relation to the acquisitions will be dispatched to shareholders shortly.

Cadence currently owns approximately 6.5% of the equity in Auroch Minerals, which is an exploration company targeting principally zinc, cobalt and lithium.

The full release can be found at: https://www.investi.com.au/api/announcements/aou/474bda8b-5a8.pdf

Cadence Minerals CEO Kiran Morzaria commented: "The acquisition of Saints and Leinster Nickel projects represents an excellent addition to Auroch's existing portfolio of projects. We look forward to subsequent developments."

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For further information:

Cadence Minerals plc	[phone]
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)	[phone]
James Joyce
James Sinclair-Ford
Novum Securities Limited (Joint Broker)	[phone]
Jon Belliss

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 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 reflect 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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