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Cadence Minerals to acquire six prospective hard rock lithium assets in Argentina in start of “strategic shift”

Last updated: 03:50 11 Dec 2017 GMT, First published: 08:30 11 Dec 2017 GMT

Lithium
It said an initial site visit and reviews by Cadence have confirmed multiple pegmatite outcrops across the six claims

Cadence Minerals Plc (LON:KDNC) (OTC: KDNCY) saw its shares rise today on news it is to acquire up to 100% of six prospective hard rock lithium assets in Argentina from Lithium Technologies Pty Ltd and Lithium Supplies Pty Ltd, the start of a “strategic shift” in its investing.

In a statement, Cadence said it is shifting to early stage lithium assets in well-known lithium jurisdictions where it sees “the potential to deliver shareholder value by investing in projects that have shorter development timeline to cashflow than a typical lithium carbonate producer.”

In early afternoon trading, Cadence Minerals shares were 3.9%, or 0.01p higher at 0.27p.

READ: Cadence Minerals making progress as it targets earn-in deals for two early-stage lithium assets

The AIM-listed firm noted that the vendor firms have claims over 55,773 hectares for six exploration permits within the known spodumene bearing pegmatite fields in San Luis Province, Central Argentina.

It said an initial site visit and reviews by Cadence have confirmed multiple pegmatite outcrops across the six claims.

The group pointed out that the pegmatite fields of San Luis have an important past record of producing mica, beryl, spodumene, tantalite (tantalum oxide), columbite (niobium oxide), and recently potassium feldspar, albite and quartz.

It added that the properties have good access and infrastructure support for exploration activities on a year-round basis.

New assets tick all the boxes

Kiran Morzaria, Cadence’s chief executive officer, commented: "These assets tick all the boxes that we were looking for: located in a well-known lithium producing country and in a large pegmatite field with known lithium compound production; potential to deliver quicker and cheaper development timelines and produce lithium oxide concentrate; near-term value triggers in the form of sampling and drilling and low cost in terms of the acquisition itself and the mineral exploration."

On grant of the exploration permits Cadence said it will acquire up to 49% by spending £1.1mln on exploration and drilling, and by issuing £0.4mln of new ordinary shares in Cadence to the vendors.

Cadence said it has an option to acquire up to 100% of the properties by issuing a further £1.75mln of new ordinary shares in Cadence.

READ: Cadence Minerals says investee company Macarthur Minerals has been granted all necessary licences for Hillside Gold Project

Andrew Suckling, Cadence’s executive chairman, added: "After an extensive review of opportunities, this acquisition enables us to deliver on our strategic objectives.

“It also provides us with an excellent platform to investigate building a larger portfolio of interests in a country with an established lithium industry, good infrastructure and supportive regulatory and fiscal regimes.“

He concluded: “The next year promises to be an exciting period for Cadence, and, we look forward to providing further updates on our progress in due course."

 -- Adds share price --

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