Bacanora Minerals Update

RNS Number : 8724D

Cadence Minerals PLC

02 May 2017

 

Cadence Minerals Plc

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

Bacanora Minerals Completes Hanwa Equity Placing

Cadence (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that Bacanora Minerals Plc ("Bacanora") has announced the issue of 12,333,261 new common shares of no par value ('New Common Shares') to Hanwa Co., LTD ('Hanwa'), a leading Japan-based global trading company and one of the larger traders of battery chemicals in the Asian region. The New Common Shares represent 10.0% of the enlarged issued share capital of Bacanora and are being issued at a price of 82.5 pence per share to raise approximately £10,175,000 for Bacanora pursuant to the its offtake agreement with Hanwa for battery grade lithium carbonate at its Sonora lithium project in Mexico (for details regarding the offtake agreement, please refer to the Bacanora's news release dated 10 April 2017).

The full Bacanora release is available at: http://www.investegate.co.uk/bacanora-minerals-ld--bcn-/rns/completion-of-hanwa-equity-placing/201705020700167897D/ .

Cadence holds an interest in the Project in Mexico through its 17.18% holding in Bacanora and the joint venture interests of 30% in each of Megalit S.A. de CV and Mexalit S.A. de CV as fully described below.

The Sonora Lithium Project and Details of Cadence's ownership:

Cadence owns a direct interest of 17.18% of Bacanora. The Sonora Lithium Project is comprised of the following lithium properties:

- La Ventana, La Ventana 1, and Megalit concessions, which are 100 percent owned by Minera Sonora Borax S.A. de C.V.("MSB"), a wholly-owned subsidiary of Bacanora; Cadence, through its direct interest of 17.18% of Bacanora, has an indirect interest in these concessions of 17.18%.

- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"). Cadence has a 43% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with Cadence's direct interest of 17.18% in Bacanora, has a total economic interest in Mexalit of 43%.

- The Buenavista, and San Gabriel concessions, which are held by Megalit S.A de C.V ("Megalit"). Cadence has a 30% direct interest in Megalit through its Joint Venture with Bacanora, and when combined with Cadence's direct interest of 17.18% in Bacanora, has a total economic interest in Megalit of 43%.

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).

For further information please contact
Cadence Minerals plc	[phone]
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)	[phone]
James Joyce
James Bavister
Square1 Consulting	[phone]
David Bick
Brian Alexander

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 £35 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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