Update - Bacanora Lithium

RNS Number : 1785Q

Cadence Minerals PLC

04 June 2018

 

4 June 2018

Cadence Minerals Plc

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

Bacanora Lithium Update

 Positive Progress at Sonora Project in Mexico

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) reports that Bacanora Lithium plc (the "Company" or "Bacanora") (AIM: BCN), the London-listed lithium company, has provided a positive update on the development of its Sonora Lithium Project in Mexico ('Sonora' or the 'Project') as it prepares to commence construction of a fully integrated lithium carbonate operation, beginning with Stage 1 construction of a 17,500 tpa plant before upgrading to 35,000 tpa via a planned Stage 2 expansion project. 

Highlights:

·     State Governor Claudia Pavlovich hosted the official Project Commencement ceremony in Hermosillo, Mexico  

·     Hanwa Corporation ('Hanwa') of Japan has agreed in principle to extend their initial lithium off-take partnership for a further 5 years at a rate of 17,500 tpa of lithium carbonate, on the same commercial terms as the initial 5 year off-take

·     Front End Engineering Design (FEED) ongoing and scheduled to have final designs, cost estimates and process guarantee scopes substantially completed by end Q2 2018

·     Continued pilot plant operations for operator training and production of battery grade lithium samples for delivery to selected customers

·     Current timetable is to commission the plant within 20 months subject to project financing

Bacanora is a lithium exploration and development company. Cadence has an approximately 8% of Bacanora's equity and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the Sonora Lithium Project in Northern Mexico.

The full release can be found at: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13665220.html

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For further information, please contact.
Cadence Minerals plc	[phone]
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)	[phone]
James Joyce James Sinclair-Ford
Hannam & Partners LLP (Joint Broker)	[phone]
Neil Passmore
Giles Fitzpatrick
Square1 Consulting	[phone]
David Bick

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.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale - upcoming supersized passenger vehicles, lorries and buses - require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over GBP20 million vested in key assets globally, Cadence is helping us reach tomorrow, today.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral's goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

 

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