The deal will see Cadence shares to Clancy for a 10% direct interest in Leogang with the option for the further 10% exercisable in A$1mln cash or shares or mixture at Cadence's election.
It has 14 days to complete the necessary due diligence and obtain the necessary board and regulatory approvals.
Andrew Suckling, Cadence's executive chairman said: "Cobalt, lithium and Rare Earth Elements, have been identified as key strategic minerals in the rapidly expanding electric vehicle market with cobalt in particular facing the challenge of limited current reserves.
"UBS estimated that in a 100% EV world there would be a 1,928% incremental demand in cobalt, which is second only to a 2,898% incremental demand in lithium.
"In Europe, the electric vehicle market is forecast reach penetration rates of around 30% by 2025. Cobalt and lithium are critical to current battery chemistry and supply will have to increase substantially over the coming years.
"Cadence believes that, like the Cinovec lithium project, in which we have a 21% interest, the Leogang Project is a potentially important and strategic source of Cobalt in the heart of Europe's new battery manufacturing region."
Clancy has been granted exploration licences covering approximately 80 sqkm2 in the Salzburg and Kitzbuhel regions of western Austria, which incorporates the historic Leogang cobalt-nickel sulphide project.
Macarthur Minerals expands lithium brine project portfolio
Ina separate stock exchange announcement this afternoon, Cadence told investors that Macarthur Minerals (CVE:MMS) – in which Cadence holds a 20.3% stake – has expanded its lithium brine project portfolio.
Macarthur has staked 210 new mining claims at the Reynolds Spring lithium brine project in Nevada, where it has located lithium at surface of up to 300 parts per million.
“The new claims forming the Reynolds Spring Project are located on the Railroad Valley playa, which historically records the largest lithium soil anomaly in the State of Nevada,” said Macarthur Minerals president and chief executive David Taplin.
Reynolds Spring is only 100 or so miles away from Stonewall, Macarthur’s other lithium project in Nevada.
Cadence shares were unchanged at 0.39p shortly before close.
--Updates for share price and Macarthur Minerals announcement--