Cadence Minerals (LSE:KDNC)
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RNS Number : 4651C

Cadence Minerals PLC

17 June 2019

Cadence Minerals Plc

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

European Metals (AIM: EMH) PFS Update Confirms Potential of Low Cost Lithium Hydroxide Production at Cinovec.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the results published today by European Metals Holdings Limited ("European Metals" or "EMH") from the successful update of the process flowsheet previously developed to enable the production of lithium hydroxide (LiOH.H(2) O). This work has been completed in conjunction with test-work confirming the production of battery grade lithium hydroxide from Cinovec ore. EMH states that the results significantly enhance the forecast economics of the Cinovec Project.

Highlights:

   --    Net estimated overall cost of production post credits:  $3,435 / tonne LiOH.H(2) O 
   --    Project Net Present Value ("NPV") increases 105% to:  $1.108B (post tax, 8%) 
   --    Internal Rate of Return ("IRR") increased 37% to 28.8% (post tax) 
   --    Total Capital Cost:  $482.6M 
   --    Annual production of Battery Grade Lithium Hydroxide: 25,267 tonnes 

-- Studies are based on only 9.3% of reported Indicated Mineral Resource and a mine life of 21 years processing an average of 1.68 Mtpa ore

-- The process used to produce lithium hydroxide allows for the staging of lithium carbonate and then lithium hydroxide production to minimize capital and startup risk and enables the production of either battery grade lithium hydroxide or carbonate as markets demand

Cadence holds approximately 19.1 percent of the equity in European Metals, which, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over Cinovec.

The full release can be found at:

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/EMH/14112338.html

Cadence Minerals CEO Kiran Morzaria commented: "Great work from Keith Coughlan and the EMH team. This important update to the PFS has increased the project NPV and once again highlighted the strategic importance of the Cinovec project for the European lithium market."

- 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 
 
 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 identi ed 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 re ect 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.

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UPDLIFSTRAIDLIA

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June 17, 2019 04:53 ET (08:53 GMT)