Cadence Minerals PLC (LON:KDNC) (OTC:KDNCY) said it has been issued shares in Australian-listed Clancy Exploration Limited (ASX:CLY) as compensation for the discovery of third party priority over overlapping licences in Austria.
In a statement, the AIM-listed firm said that, following discussions, Clancy has considered it appropriate to issue Cadence with 140,000,000 fully paid ordinary shares at a deemed price of A$0.003 each. Once these shares are issued, Cadence said it will own approximately 4% of Clancy.
As previously announced in September 2017, Clancy's investigations into its ground tenures at the Leogang Cobalt-Nickel Sulphide Project in Austria determined that there were 28 overlapping licences out of Clancy's 200 licences that were preceding priority claimants.
The preceding claims cover a total area of approximately 12 square kilometres and included the historical Nockelberg and Leogang mines.
Prior to the investigations, Cadence acquired a 10% interest in all 200 licences held by Clancy, and the parties entered into a joint venture.
Cadence was subsequently made aware of the licensing situation and agreed with Clancy to continue to evaluate the remaining licences, in which Cadence holds 10%.
Clancy continues to have priority over the balance of the project area, being 172 licences covering approximately 68 square kilometres.
In late afternoon trading, Cadence shares were steady at 0.24p.