Aussie-listed Auroch said it fulfilled all obligations required by the agreement but delays in renewing the prospecting licence, the application for which was submitted on time, means it has chosen to terminate the agreement.
As part of the arrangement, Auroch is entitled to the remaining cash in the bank plus anything raised through the sale of the joint venture’s assets.
Bolt – the name of the JV company – will also grant Auroch a royalty of 1% of the net smelter return of any minerals mined under the licence up until the point where the total royalty payments equal €1mln.
“With the licence renewal not yet being granted, Auroch has elected to terminate the JV Agreement,” said chairman Glenn Whiddon.
“The company is now focussed on the recently acquired Arden and Bonventura Base-metals projects located in the world class mining region of South Australia.”
Shares in Cadence, which has a 7.7% stake in the zinc, cobalt and lithium explorer, fell 2.1% to 0.23p in mid-morning trade in London.