Cadence Minerals PLC - Update - Macarthur Minerals London Stock Exchange
RNS Number : 7829T
Cadence Minerals PLC
22 March 2019
 

Cadence Minerals Plc

("Cadence Minerals", "Cadence" or "the Company")

 

Macarthur Minerals (TSX-V: MMS) Clarifying Announcement

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) notes the announcement made by Macarthur Minerals (TSX-V: MMS) ("Macarthur") clarifying its announcement of 21/03/2019 as outlined below.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=8899606909574587&qm_symbol=MMS

As a result of a review by the Investment Industry Regulatory Organization of Canada, Macarthur issues this news release to clarify certain statements in the its news release dated March 21, 2019 entitled "Macarthur Minerals Signs 10 Year Iron Ore Off-Take Agreement for the Lake Giles Iron Project in Australia With Glencore International A.G." (the "March 21 News Release").

In addition to the retractions and clarifications contained in the news release, Macarthur would like to clarify its intention in issuing the March 21 News Release which was to immediately disclose the entering into a material contract with Glencore International A.G., as required by Policy 3.3 - Timely Disclosure of the TSX Venture Exchange Corporate Finance Manual (the "TSX-V Manual").  Macarthur regrets any confusion to the shareholders of the Company that may have resulted from the March 21 News Release.

The disclosure in the March 21 News Release relating to the gross value of the iron ore off-take agreement, projected revenue to Macarthur, projected spot price for iron ore during the term of the off-take agreement and the resource estimates and economic forecast of the combined Moonshine Magnetite and Ularring Hematite operation (collectively, the "Disclosure") is inconsistent with:

section 2.1 (Requirements Applicable to All Disclosure) of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") because the March 21 News Release did not contain the required statements that the scientific and technical information contained in the March 21 News Release has been approved by a "qualified person" under NI 43-101;

section 2.3 (Restricted Disclosure), subsections (1)(b) and (1)(c), of NI 43-101 because the Disclosure discloses the results of economic analyses that includes or is based on inferred mineral resource and the gross value of metal or mineral in a deposit;

section 2.3 (Restricted Disclosure), subsection (3), and section 3.4(e) of NI 43-101 because the March 21 News Release did not contain the required cautionary language, including the qualifications and assumptions made by a "qualified person" under NI 43-101;

section 4.2(6) (Production Decision) of Companion Policy 43-101CP to NI 43-101 because the March 21 News Release did not contain the required cautionary language that Macarthur has not filed a technical report to support a production decision; and

section 8.1 (Content of News Releases) of Policy 3.3 - Timely Disclosure of the TSX-V Manual because the March 21 News Release only discloses the projected "revenue" of the Life-of-Mine Off-Take Agreement.

In addition, the preliminary assessment titled "The Technical Report on the Moonshine and Moonshine North Prospects, Lake Giles Project Western Australia" dated March 25, 2011 (the "2011 Technical Report") prepared for Macarthur is not a current NI 43-101 technical report prepared in respect of the combined Moonshine Magnetite and Ularring Hematite operation and does not reflect the economic forecast of the combined Moonshine Magnetite and Ularring Hematite operation.

The portions of the following statements from the March 21 News Release in quotations, italicized and underlined are hereby retracted for the foregoing reasons:

Securing this approximately "US$4 billion purchase arrangement ensures consistent long-term revenue to the Company.";

Macarthur's management is pursuing debt financing discussion with European banks and international financial institutions. "Achieving this key milestone is the beginning for Macarthur to transition into a large scale global resource production company.";

 "The Agreement is currently valued at approximately US$4 billion in revenue over the first 10-year term ensuring Macarthur long term revenue and consistent sales per year.";

Metallurgical test work on the Lake Giles's Moonshine Magnetite Project indicates that an export product of high margin +65% Fe can be achieved. "Current market price for 65% Fe product is quoted at US$98/tonne (A$140 per tonne). (1 - Custeel Iron Ore Price Index) The value of the initial 10-year Glencore off-take at current market price for Moonshine iron ore would be ~US$4 billion."; and

"The Capex for a combined Moonshine Magnetite and Ularring Hematite operation is now estimated to be US$335 million. Magnetite Opex costs are estimated to be A$55/tonne free on board ("FOB") and Opex costs of A$42/tonne FOB for hematite."

This news release is not for distribution to United States Services or for Dissemination in the United States

 

- 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




Hannam & Partners LLP (Joint Broker)

                                +44 (0) 207 907 8500

Neil Passmore


Giles Fitzpatrick




Novum Securities Limited (Joint Broker)

                                +44 (0) 207 399 9400

Jon Belliss


 

 

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.

  

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified 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 reflect 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.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
MSCGMGZFVZRGLZM ]]>