Cadence Minerals investee partner funded for Hillside exploration
Cadence Minerals announced on Friday that a joint venture partner of its investee Macarthur Minerals, Fe, has completed of the sale of its Evanston royalty interest over a portion of the wider Koolyanobbing iron ore mine, in the Southern Yilgarn region of Western Australia.
The AIM-traded firm, which holds around 3% of Macarthur Minerals, said TRR Services Australia - a wholly-owned subsidiary of Trident Resources - has purchased the royalty for $7m.
Fe received the first payment of $3.5m, with a further instalment of $3m payable in 12 months.
Cadence said Fe now had cash at bank of $5.2m, and was fully-funded to begin exploration work at the Hillside Copper and Gold Project in the Pilbara region of Western Australia.
Fe was currently finalising plans to conduct a fixed loop electromagnetic ground survey at the Hillside project.
The survey would cover a section of the previously-identified gossan line, as well as a series of individual fixed loop electromagnetic surveys over previously-identified high priority electromagnetic targets across the wider project area.
Results were expected to better indicate any massive sulphide mineralisation which could exist, to assist in targeting the next drilling campaign later in the year.
“We are excited by the news that Fe is adding $7m to its bank balance and will be fully funded for further exploration activities on Macarthur's Pilbara tenements encompassing the Hillside, Panorama, and Strelley projects,” said Macarthur president and executive chairman Cameron McCall.
“All results so far have been very encouraging.”
At 1333 BST, shares in Cadence Minerals were down 11.12% at 9.96p.