Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that
The placement's net proceeds will be used to advance development of the
Relevance to
Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the
The definitive feasibility study published in 2017, modelled two production scenarios the second of which had included within it 808,000 tonnes of plant feed from one of our joint venture areas (Yangibana) in year 6. This production target and additional production target from the definitive feasibility study indicates that 11% of the plant feed will come from our joint venture area[1].
The funding announced by Hastings represents the large majority of the equity component required to commence the development of the
The economic model contemplated by Hastings[2] assumes Cadence through its subsidiary will participate in the and mining of the deposits held 70% by Hastings and 30% by Cadence. Assuming there is a development of the mine by the joint venture a new Mining Joint Venture Agreement will need to be agreed and put in place to replace the existing joint venture documentation and regulate the arrangements between the participants for the mine development. No costs or revenue ascribed to 30% interest in the deposits held by Cadence were reported in the financial modelling published by Hastings.
Upon settlement of both tranches of the Placement, the Company will have a cash balance of approximately
As previously announced to the ASX, the equity component of the
The full HAS release can be found at: https://investi.com.au/api/announcements/has/8a07d081-700.pdf
The current mine plan anticipates production to start from our joint venture area (Yangibana) in year 6. The production target and additional production target from the definitive feasibility study (
Cadence CEO
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 identied 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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