Cadence Minerals PLC - Austrian Cobalt Project - Update London Stock Exchange
RNS Number : 8905J
Cadence Minerals PLC
03 July 2017
 

 Cadence Minerals Plc

("Cadence" or the "Company")

 Austrian Cobalt Project - Update

 

Further to the announcement on the 15 June in which Cadence Minerals Plc (AIM/NEX: KDNC; OTC: KDNCY), signed a binding Memorandum of Understanding ("MOU") with Australian listed Clancy Exploration Limited ("Clancy" ASX: CLY), Cadence advises that it has completed its due diligence and has elected to acquire an initial 10% direct interest in the historically high grade Leogang Cobalt-Nickel Sulphide Project in Austria (the "Leogang Project").

Along with an initial site visit, Cadence engaged an independent technical consulting firm to review the exploration potential of the area.

This initial review identified that the area has good exploration potential in terms of depth extensions and strike extensions of the known historical mines and further potential in the wider license area which covers favourable outcropping geology, notably, the dolomite-schist contact, which hosts the mineralisation in the historic mines.

6 early stage exploration targets have now been identified around the Nokelberg and Schwarzleo historical mining centres. Over the coming weeks we will working alongside Clancy to develop a detailed exploration programme

Details of the Transaction:

Cadence has elected acquire a 10% direct interest in the Leogang Project by issuing Clancy 73,750,000 new ordinary shares in Cadence (the "New Ordinary Shares"). Cadence has a six-month exclusive option to acquire a further 10% interest in the Leogang Project by paying Clancy a further A$1 million that can either be paid in cash or Cadence shares at the time of exercising its option, or a combination of at Cadence's election.

Application will be made for these New Ordinary Shares to be admitted to trading on AIM and it is anticipated that trading in such shares will commence on or around 7 July 2017.

Following Admission, the Company's enlarged issued share capital will comprise 7,851,440,338 ordinary shares. The Company does not hold any shares in treasury. This figure of 7,851,440,3389 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Kiran Morzaria, CEO of Cadence Mineral's commented:

 

"Our initial review of the Leogang Project has been very encouraging. There is good exploration potential for Cobalt, Nickel, Copper and other precious metals around the historical mines and the potential of much more extensive exploration targets over the dolomite-schist contact which the licenses cover. I look forward to working with the Clancy team to progress the exploration of these assets over the coming months. Our particular focus will be in the identification and definition of high-grade Cobalt mineralised areas, which we hope will become part of the supply chain in the heart of Europe's new battery manufacturing region."

 

About the Leogang Cobalt-Nickel Sulphide Project:

Clancy has been granted exploration licences covering approximately 80km2 in the Salzburg and Kitzbuhel regions of western Austria incorporating the historic and highly prospective Leogang Cobalt-Nickel Sulphide Project.

This acquisition delivers an exciting land position (80km2) in the prospective dolomite belt in western Austria, with exploration targets generated on several historical cobalt-nickel mines.

 

·      Nickel and cobalt were mined in the region from the mid-16th century when Leogang was famed for the richness of its cobalt and nickel mineralisation;

·      Mining peaked in the late 1700's but the market fell away after the Napoleonic Wars;

·      Licences have been targeted to cover each historical mine and further extensions of the host dolomitic mineralisation

 

The historical Leogang cobalt-nickel mines are located within the mining friendly but environmentally sensitive jurisdiction of Austria in central Europe where infrastructure is particularly well established. These polymetallic mines were in operation mainly in the 16th and 17th centuries, and occasionally until the first half of the 20th century. At the end of the 16th century, they were famous in Europe for their production of cobalt.

Mineralisation:

The mineralisation is hosted almost exclusively by dolomite, and is often associated with over thrusting where the dolomite failed during faulting promoting the circulation of hydrothermal fluids. The mineralisation is of three main types:

·      Quite intense and strong when overthrust related.

·      Rather low when associated with shear zones.

·      Rather low when related to small faults or stratification.

Mineralisation was mined in three main areas: Inschlagalm, Nockelberg and Schwarzleo

Historical Production:

Past production records for the area are scarce.  Those that have been obtained from the Schwarzleo mining museum are shown as follows:

 

Historical Mine

Easting UTM

Northing UTM

Production Period

Production

Nockelberg

324,875

 

5,255,750

1872-1877

60 tonnes of ingot at 22.2% Ni, 11.0% Co, 3% Cu

1871-1872

650 tonnes of ore at 3-6% Ni-Co.

Note: Coordinates provided are in UTM WGS84 Projection.

High grade rock chip samples reported include (Haditsch & Mostler, 1970):

Mine

Easting UTM

Northing

UTM

Sample

Co%

Ni%

Cu%

Reference

Nockelberg

324,875

5,255,750

1

3.9

1.55

2.19

Haditsch & Mostler, 1970

2

3.6

-

4.38

3

1.95

2.35

3.59

4

2.75

2.36

3.19

5

4.65

3.14

12.7

Schwarzleo

324,800

5,254,950

6

11.67

6.52

3.82

Haditsch & Mostler, 1970

7

15.76

8.12

4.91

Note: Coordinates provided are in UTM WGS84 Projection.

 

- Ends -

For further information please contact




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 Bavister




Square1 Consulting

+44 (0) 207 929 5599

David Bick


Brian Alexander


 

Qualified Person

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.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale - upcoming supersized passenger vehicles, lorries and buses - require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £35 million vested in key assets globally, Cadence is helping us reach tomorrow, today.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral's goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.


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