DJ Cadence Minerals PLC Macarthur Minerals - Lake Giles Developments
RNS Number : 2705R
Cadence Minerals PLC
26 June 2020
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Macarthur Minerals (TSX-V: MMS) - Arrow Land Tenure Agreement and Applications Lodged for Haul Road and Rail Siding for Lake Giles Iron Project.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (TSX-V: MMS) ("Macarthur") has announced the completion of an agreement with Arrow Minerals Limited (ASX: AMD) ("Arrow"), for the grant of rights to apply for tenements which will support the development of infrastructure associated with a proposed magnetite processing circuit at Lake Giles.
Cadence also notes that on 25 June 2020, Macarthur lodged applications with the Department of Mines, Industry, Regulation and Safety ("DMIRS") to develop a 93km haul road from its Lake Giles Iron Project to a proposed rail siding adjacent to the Perth to Kalgoorlie rail line in the Yilgarn region of Western Australia
Arrow Land Tenure Agreement
Pursuant to the Agreement, originally entered into in December 2019, ("Agreement"), Arrow will permit Macarthur to apply for and obtain a general purpose lease and a miscellaneous licence over a site within the boundary of Arrow's exploration licences E30/393 and E30/394, to support the development of infrastructure associated with its planned magnetite processing circuit for its Lake Giles Iron Project ("Project"). The substantial package of land covers approximately 4,950ha and is adjacent to the Moonshine magnetite deposit. The tenure will be used for constructing supporting infrastructure for the mine including a processing plant, camp, airstrip, tailings storage facility and waste rocks dumps.
The terms upon which Arrow agreed to permit Macarthur's application included a cash payment of A$250,000 (paid in December 2019) ("Cash Payment") and a share payment comprising the issue of Macarthur shares to Arrow to the value of A$250,000 (exclusive of GST) at an issue price per share equivalent to a 20% discount to the average VWAP of the shares trading on ASX for the 5 trading days preceding the issue date, and on which trades for the shares were recorded ("Share Payment"). Macarthur made the Share Payment on 23 June 2020, resulting in the issue of 1,702,997 shares at an issue price of A$0.1468 per share.
The full Arrow Land Tenure release can be found at: https://web.tmxmoney.com/article.php?newsid=6417845063071316&qm_symbol=MMS
Road and Rail Links
Subject to obtaining required approvals and completion of construction, the proposed haul road and rail siding will provide optionality for the transport of iron ore by rail to either Esperance Port or the Port of Kwinana.
This key infrastructure is intended to support the development of Macarthur's flagship Moonshine magnetite deposits at Lake Giles, targeting a +65% Fe beneficiated magnetite concentrate, and opens up the opportunity to exploit Direct Shipping Ore ("DSO") from the Ularring hematite deposits.
In 2012, the Company completed a Pre-Feasibility Study for the mining of iron ore from its Ularring hematite deposits targeting a +60% Fe beneficiated fines sinter product. Given the current robust iron ore market, the Company is currently examining the opportunity to accelerate operations for the mining of DSO (as Stage 1) from its Ularring hematite deposits with the objective of generating early revenue flows. The development of new road and rail siding infrastructure has the potential to facilitate this, in addition to supporting the development of the Company's flagship Moonshine magnetite resource (Stage 2) following completion of a successful Feasibility Study for the Lake Giles Iron Project which is currently being progressed.
The full Haul Road and Rail Siding Application release can be found at: https://web.tmxmoney.com/article.php?newsid=7029129052456326&qm_symbol=MMS
Macarthur President and Executive Chairman Cameron McCall commented: "The completion of the agreement with Arrow has secured the rights necessary to enable the design and location of critical inf rastructure associated with the magnetite processing plant which will be finalised as part of the Feasibility Study for the Lake Giles Iron Project."
"Defining route-to-market infrastructure has been the core focus for the Company throughout 2020. Completion of the Lake Giles Iron Project Feasibility Study will require Macarthur to have engineering designs and tenure for a haul road from the Lake Giles Iron Project to a rail siding with access to the existing rail network. The proposed haul road and rail siding also creates the opportunity to support Stage 1 hematite mining operations at Lake Giles ahead of the commencement of Stage 2 commercial magnetite mining operations. The Board considers that advancing early-revenue generating operations would support re-rating of Macarthur as a producer and will complement the announced pathway for the development of its flagship high-grade Moonshine magnetite resource at Lake Giles."
Cadence CEO Kiran Morzaria commented: "We are pleased to note that Macarthur is steadily advancing the Lake Giles Iron Project, and backed by a robust iron ore market is looking to accelerate operations for the mining of DSO. In our results announcement earlier today, our Chairman noted our 'timely focus' on iron ore opportunities. Certainly the developments announced today further validates our investment strategy, both in regard to a potential re-rating of Macarthur as a producer and into our own efforts in developing the Amapá iron ore project."
Cadence Minerals Holding in Macarthur
Cadence holds approximately 3% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.
This news release is not for distribution to United States Services or for Dissemination in the United States.
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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 26, 2020 10:23 ET (14:23 GMT)