Cadence Minerals PLC Update - Macarthur Minerals (7829T)
March 22 2019 - 11:12AM
UK Regulatory
TIDMKDNC
RNS Number : 7829T
Cadence Minerals PLC
22 March 2019
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Macarthur Minerals (TSX-V: MMS) Clarifying Announcement
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) notes the
announcement made by Macarthur Minerals (TSX-V: MMS) ("Macarthur")
clarifying its announcement of 21/03/2019 as outlined below.
The full release can be found at:
https://web.tmxmoney.com/article.php?newsid=8899606909574587&qm_symbol=MMS
As a result of a review by the Investment Industry Regulatory
Organization of Canada, Macarthur issues this news release to
clarify certain statements in the its news release dated March 21,
2019 entitled "Macarthur Minerals Signs 10 Year Iron Ore Off-Take
Agreement for the Lake Giles Iron Project in Australia With
Glencore International A.G." (the "March 21 News Release").
In addition to the retractions and clarifications contained in
the news release, Macarthur would like to clarify its intention in
issuing the March 21 News Release which was to immediately disclose
the entering into a material contract with Glencore International
A.G., as required by Policy 3.3 - Timely Disclosure of the TSX
Venture Exchange Corporate Finance Manual (the "TSX-V Manual").
Macarthur regrets any confusion to the shareholders of the Company
that may have resulted from the March 21 News Release.
The disclosure in the March 21 News Release relating to the
gross value of the iron ore off-take agreement, projected revenue
to Macarthur, projected spot price for iron ore during the term of
the off-take agreement and the resource estimates and economic
forecast of the combined Moonshine Magnetite and Ularring Hematite
operation (collectively, the "Disclosure") is inconsistent
with:
section 2.1 (Requirements Applicable to All Disclosure) of
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101") because the March 21 News Release did not
contain the required statements that the scientific and technical
information contained in the March 21 News Release has been
approved by a "qualified person" under NI 43-101;
section 2.3 (Restricted Disclosure), subsections (1)(b) and
(1)(c), of NI 43-101 because the Disclosure discloses the results
of economic analyses that includes or is based on inferred mineral
resource and the gross value of metal or mineral in a deposit;
section 2.3 (Restricted Disclosure), subsection (3), and section
3.4(e) of NI 43-101 because the March 21 News Release did not
contain the required cautionary language, including the
qualifications and assumptions made by a "qualified person" under
NI 43-101;
section 4.2(6) (Production Decision) of Companion Policy
43-101CP to NI 43-101 because the March 21 News Release did not
contain the required cautionary language that Macarthur has not
filed a technical report to support a production decision; and
section 8.1 (Content of News Releases) of Policy 3.3 - Timely
Disclosure of the TSX-V Manual because the March 21 News Release
only discloses the projected "revenue" of the Life-of-Mine Off-Take
Agreement.
In addition, the preliminary assessment titled "The Technical
Report on the Moonshine and Moonshine North Prospects, Lake Giles
Project Western Australia" dated March 25, 2011 (the "2011
Technical Report") prepared for Macarthur is not a current NI
43-101 technical report prepared in respect of the combined
Moonshine Magnetite and Ularring Hematite operation and does not
reflect the economic forecast of the combined Moonshine Magnetite
and Ularring Hematite operation.
The portions of the following statements from the March 21 News
Release in quotations, italicized and underlined are hereby
retracted for the foregoing reasons:
Securing this approximately "US$4 billion purchase arrangement
ensures consistent long-term revenue to the Company.";
Macarthur's management is pursuing debt financing discussion
with European banks and international financial institutions.
"Achieving this key milestone is the beginning for Macarthur to
transition into a large scale global resource production
company.";
"The Agreement is currently valued at approximately US$4 billion
in revenue over the first 10-year term ensuring Macarthur long term
revenue and consistent sales per year.";
Metallurgical test work on the Lake Giles's Moonshine Magnetite
Project indicates that an export product of high margin +65% Fe can
be achieved. "Current market price for 65% Fe product is quoted at
US$98/tonne (A$140 per tonne). (1 - Custeel Iron Ore Price Index)
The value of the initial 10-year Glencore off-take at current
market price for Moonshine iron ore would be US$4 billion.";
and
"The Capex for a combined Moonshine Magnetite and Ularring
Hematite operation is now estimated to be US$335 million. Magnetite
Opex costs are estimated to be A$55/tonne free on board ("FOB") and
Opex costs of A$42/tonne FOB for hematite."
This news release is not for distribution to United States
Services or for Dissemination in the United States.
- 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
Hannam & Partners LLP (Joint
Broker) +44 (0) 207 907 8500
Neil Passmore
Giles Fitzpatrick
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.
END
MSCGMGZFVZRGLZM
(END) Dow Jones Newswires
March 22, 2019 12:12 ET (16:12 GMT)