Corporate Update - Hastings Technology Metals
Cadence Minerals Plc
("Cadence Minerals", "Cadence", or "the Company")
Corporate Update - Hastings Technology Metals
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement by Hastings Technology Metals (ASX: HAS) ("Hastings") that it has executed the Engineering, Procurement and Construction (EPC) contract with West Australian company GR Engineering Services Limited ("GRES") (ASX: GNG) for delivery of the Yangibana beneficiation plant and associated infrastructure.
The contract has no material departures from the binding terms sheet that both parties signed in May 2023, including the contract value of $210 million. It includes a process guarantee which aligns with the current planned ramp up of the beneficiation plant and supported by all process test work completed to date
· Long form EPC contract signed with GR Engineering Services (GRES) for delivery of the beneficiation plant and associated infrastructure for the Yangibana Rare Earths Project.
· Fixed price contract award for $210 million in line with the staged development strategy endorsed by the Board in May 2023:
o Fixed price component of $180 million for the beneficiation plant.
o Provisional component of $30 million mainly for the plant and TSF earthworks.
· EPC contract minimises risk of capital cost increases and provides guarantees on project
schedule, product throughput and plant recovery.
· GRES continuing to work with Hastings on engineering and procurement under an early works agreement until mobilisation to site in Q4 2023 following satisfaction of conditions precedent including finalisation of project funding as standard for an EPC contract.
· Construction planned to be complete in Q1 2025 with first concentrate on truck in Q2 2025 Hastings
Link here to view the full Hastings announcement
Hastings Executive Chairman Charles Lew commented: "The signing of the EPC contract with GR Engineering for the delivery of the beneficiation plant at Yangibana is another important milestone in our development plan for bringing this world-class project into production. The fixed price contract and strong credentials of GR Engineering gives us a high level of confidence in the delivery of this critical infrastructure ahead of first rare earth concentrate production in Q2 2025."
GR Engineering Services Managing Director, Mr Tony Patrizi, said: "GR Engineering is pleased to be working on this world-class rare earths project in the Gascoyne region of Western Australia. The fact that Hastings has recognised the high level of expertise and experience within the GRES process team and broader business is extremely satisfying. We look forward to engaging closely with the Hastings team to deliver safe and successful outcomes for this important project in the critical minerals sector."
Cadence shareholding in Hastings
On 25 January 2023, Cadence completed the sale of its 30% stake in several mineral concessions forming part of the Yangibana Rare Earths project for a consideration of 2.45 million Hastings shares, equating to approximately 1.9% Hastings issued share capital. This consideration was a premium over the Net Present Value ("NPV") of the Cadence portion of the mineable material, based on the definitive feasibility ("DFS") updated by Hastings on 21 February 2022.
The full announcement concerning the Yangibana sale is available here.
For further information contact:
Cadence Minerals plc
+44 (0) 20 3582 6636
WH Ireland Limited (NOMAD & Broker)
+44 (0) 207 220 1666
+44 (0) 7976 431608
Public & Investor Relations
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.
Cautionary and Forward-Looking Statements
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identied 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 reect 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.
The information contained within this announcement is deemed by the company to constitute Inside Information as stipulated under the Market Abuse Regulation (E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via a regulatory information service, this information is considered to be in the public domain.