DJ Cadence Minerals PLC Update - Yangibana - Hastings Technology Metals
RNS Number : 7979B
Cadence Minerals PLC
11 June 2019
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Yangibana Rare Earth Joint Venture Partner signs Second Offtake MOU Agreement with Schaeffler AG
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce Hastings Technology Metals (ASX:HAS) ("Hastings"), Cadence's joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia ("Yangibana Project"), has signed a Second Offtake MOU Agreement with Schaeffler AG ("Schaeffler").
Cadence owns 30% of the Yangibana North., Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North Rare Earth Deposit which form part of the Yangibana Rare Earth Deposit. Probable Ore Reserves of some 2.1 million tonnes at 1.66% total rare earth elements are contained within 30% owned joint venture tenements. Further details of these reserves and pre-feasibility study can be found at: http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2688632
Hastings Announcement Highlights:
-- Hastings announces its second German offtake MOU and investment with Schaeffler for the future supply of Mixed Rare Earth Carbonate (MREC) from the Yangibana Project.
-- Schaeffler supported Hastings in its eligibility for the Euler Hermes German Government UFK loan scheme.
Schaeffler is a global automotive and industrial supplier of high-precision components and systems in engine, transmission, and chassis applications, as well as rolling and plain bearing solutions for a large number of industrial applications, primarily focussed on the automotive industry. In 2018 it generated sales of approximately Euro 14.2 billion with around 92,500 employees, Schaeffler is one of the world's largest family companies and, with approximately 170 locations in over 50 countries, has a worldwide network of manufacturing locations, research and development facilities, and sales offices.
Under the MOU, the parties have outlined their intent to enter into a binding commercial offtake agreement within the next 6 months for the sale and purchase of MREC, which will be produced from Yangibana, Western Australia. The framework for the commercial offtake agreement is set out in the MOU, and the final terms and conditions will be formalised in a contract. Schaeffler's intention in entering into an offtake agreement is to ensure reliable supplies of rare earth material in the future.
The Parties have undertaken to negotiate in good faith to reach agreement for a 10 year commercial offtake contract to supply MREC which contains the critical raw materials of neodymium (Nd) and praseodymium (Pr). NdPr is a critical raw material used in the manufacture of permanent magnets, the key component in electric motors.
Schaeffler is also supporting Hastings in its eligibility for the German government's untied loan guarantee scheme (known as UFK) in its project financing for the construction of its mine and processing plant in the Upper Gascoyne of Western Australia.
The full release can be found at: https://www.asx.com.au/asxpdf/20190611/pdf/445qzvlt14cb9w.pdf
Cadence Minerals CEO Kiran Morzaria commented: "This second offtake agreement announced with Schaeffler provides further validation of the Yangibana Project potential and our joint venture strategy with Hastings Technology Metals. We look forward to further developments."
- Ends -
For further information:
Cadence Minerals plc +44 (0) 207 440 0647 Andrew Suckling Kiran Morzaria WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666 James Joyce James Sinclair-Ford Novum Securities Limited (Joint Broker) +44 (0) 207 399 9400 Jon Belliss
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.
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.
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(END) Dow Jones Newswires
June 11, 2019 03:09 ET (07:09 GMT)