Cadence Minerals (NEX/LON:KDNC; OTC: KDNCY) has provided an update on the progress of three of its investments. The latest presentation is available on the Cadence website.

Hastings Technology Metals (ASX: HAS) (“Hastings”)

On 25 January 2023, Cadence completed the sale of its 30% stake in several mineral concessions forming part of the Yangibana Rare Earths project for a consideration of 2.45 million Hastings shares, equating to approximately 1.9% Hastings issued share capital. This consideration was a premium over the Net Present Value (“NPV”) of the Cadence portion of the mineable material, based on the definitive feasibility (“DFS”) updated by Hastings on 21 February 2022.

Hastings recently published an update on the Yangibana Rare Earth Project, highlights of which are as follows:

Ø Significant progress during the last two months on enabling construction and ordering long lead critical items.

Ø A total of $146 million in contractual commitments has been made to date, demonstrating the high degree of confidence by the Hastings Board in the future of the Yangibana project.

Ø Ore Reserves increased 25% to 20.93Mt at 0.90% Total Rare Earth Oxide (TREO) grade, increasing mine life to 17 years.

Ø Senior management appointments in the last two months include Rudolph van Niekerk as COO, Robert Klug as General Counsel, and Tim Gilbert as General Manager of Operations. Recruitment is underway for Project Director and the CFO position following the recent career move by Matthew Allen.

Ø Cost and schedule review identified potential areas for construction contracting model restructuring, optimisation and de-risking.

Ø The recent engagement of Boston Consulting Group (BGC) to assist in further investigating the merits of an integrated mine-to-magnets strategy and exploration of partnership opportunities.

The full announcement concerning the Yangibana sale is available 

Cadence Minerals CEO Kiran Morzaria, commented: “As is the nature of any investment company, our value is driven by the sum of our parts. With the recent reduction in Hastings share price our portfolio valuation has also reduced. However, we see no fundamental reason for this price volatility given the substantial progress. Hastings is making in the construction of the Yangibana rare earth project and we look forward to them advancing to project towards production in 2024.”

“Cadence’s current public and private investments have continued to perform delivering a unrealised return of approximately 172% and our listed investments have delivered a total return (realised and unrealised) of 328%.”

“Our confidence in Amapa continues to grow thanks to a potential further increase in the overall iron ore resource, improvements to the port and prospects for restarting iron ore shipments in the coming months. I look forward to providing further updates.”