Cadence Minerals plc (LON:KDNC) has noted that Hastings Technology Metals (ASX:HAS), Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia, has received commitments to raise $100.7 million through an equity placement. The placement’s net proceeds will be used to advance development of the Yangibana Project in the Gascoyne region of Western Australia.
Relevance to Cadence Minerals Holdings in the Yangibana Project:
Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Project, Hastings holds owns 70% of these leases and licenses.
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 Yangibana Project, which includes the mining and of our joint venture areas.
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.
Further details of our ownership the mineral resources and reserves on our jointly held leases can be found at:
Yangibana Rare Earth Project
Highlights:
· Hastings has received commitments to raise $100.7 million (before costs) through a two-tranche placement priced at $0.19 per share.
· Placement funds will be used to advance development of the world-class Yangibana Rare Earths Project.
· Strong institutional demand reinforces confidence that Yangibana will become Australia’s next rare earths producer.
Upon settlement of both tranches of the Placement, the Company will have a cash balance of approximately $120 million (before costs).
As previously announced to the ASX, the equity component of the Yangibana Project’s capital cost is $124 million.
The full HAS release can be found at: https://investi.com.au/api/announcements/has/8a07d081-700.pdf
Cadence Minerals Yangibana Holding:
Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the remaining 70% (“Hastings”). Further details of our ownership of the mineral resources and reserves on our jointly held leases can be found at:
Yangibana Rare Earth Project
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 (November 2017) indicates that 11% of the plant feed will come from the joint venture area license of Yangibana.
Cadence Minerals CEO Kiran Morzaria commented: “We are delighted to see the strong financial support shown by institutional, sophisticated and professional investors in the Hastings placing. This development will accelerate project construction and provides a positive read-over into the value and future potential of two of the Cadence joint venture area of Yangibana and Yangibana North”
