Business
Conditional Sale Agreement of its Stake in LT & LS
Conditional Sale Agreement of its Stake in LT & LS.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5570G\n Cadence Minerals PLC\n 30 March 2022\n \n \n \n \n Cadence Minerals Plc\n \n \n \n \n \n (\"Cadence Minerals\", \"Cadence\" or \"the Company\")\n \n \n \n \n \n Cadence enters into a Conditional Sale Agreement of its 31.5% Equity Stake in Lithium Technologies and Lithium Supplies\n \n \n \n \n \n Cadence is pleased to announce that along with all the Lithium Technologies and Lithium Supplies (\"LT and LS\") shareholders; we have reached an agreement to sell 100% of the equity of LT and LS.\n \n \n \n \n \n \n Highlights\n \n :\n \n \n • \n Cadence and all LT and LS shareholders have entered into a conditional agreement to sell 100% of LT and LS for up to A$21.05 million (£11.82 million)\n \n \n • \n Cadence owns 31.5% of LT and LS and would receive up to A$6.63 million (£3.72 million)\n \n \n • \n The consideration payable to LT and LS shareholders will be via a mixture of cash and shares\n \n \n • \n The Buyer will spend a minimum of A$4 million over three years from the completion of the sale on the exploration of the Litchfield lithium prospect (\"Litchfield\") in Northern Australia.\n \n \n \n \n \n \n Cadence CEO Kiran Morzaria commented:\n \n \n \"On behalf of the Cadence board and the other LT and LS shareholders, we are pleased to report that we have reached a conditional agreement with a public, unlisted Australian company to sell LT and LS.\"\n \n \n \n \n \n \n \"Recent exploration and sampling work at the Litchfield project and the project's proximity to Core Lithium's assets have led us to believe that Litchfield has considerable potential to host lithium mineralisation. In addtion to this the other lithium assets held by LT and LS provides the Buyer with several attractive targets to explore and develop.\"\n \n \n \n \n \n \"For Cadence, this transaction is, we believe, an excellent balance of risk and reward. Firstly it provides an initial consideration that more than covers our book investment. Secondly, by partly paying the consideration in shares in the buyer and cash payment on milestones we are exposed the the exploration upside. Lastly, given the commitment of at least A$ 4 million to explore the primary assets, this mitigates dilution to Cadence shareholders.\"\n \n \n \n \n \n \"Moreover, this transaction will also allow...