Business
Heads of Terms Signed - Premier African Minerals
Heads of Terms Signed - Premier African Minerals.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 6816S Cadence Minerals PLC 27 June 2018 \n\nCadence Minerals Plc\n \n(\"Cadence Minerals\", \"Cadence\" or \"the Company\")\n \nHeads of Terms Signed to Earn In up to 30% of a Significant DFS Ready Lithium Project\n \nCadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that it has entered into a conditional Heads of Terms with Premier African Minerals Limited (Premier) to earn up to 30% directly into the Zulu Lithium and Tantalum Project (\"Zulu\" or \"Zulu Project\") in Zimbabwe by investing up to US$5.1M. This investment will fully fund the Definitive Feasibility Study (\"DFS\") of the Zulu Project, which in November 2017 reported a scoping study with a lithium concentrate net present value (\"NPV\") of US$127M and a lithium carbonate NPV of US$718M. \n \nPROJECT HIGHLIGHTS\n· Scoping Study reported target annual production of 84,000 tonnes of spodumene concentrate and 32,500 tonnes of petalite with gross revenues of US$ 1 billion\n· Pre‐tax Net Present Value (\"NPV\") of US$127 million (10% discount rate) and Internal Rate of Return (\"IRR\") of 86%\n· Mineral Resource Estimate of 20 million tonnes (\"Mt\") at 1.06% Lithium Oxide (\"Li2O\") containing 526,000 tonnes of Lithium Carbonate Equivalent (\"LCE\")\n· Initial Capital Cost of US$64 million, direct operating cost of US$486 per tonne of concentrate\n· Initial 15+ year mine life at an average strip ratio of 5.5:1\n· Significant potential for additional mineralisation with a 120 to 160 Mt exploration target over the Zulu Project\n \nINVESTMENT HIGHLIGHTS\n· Up to US$5.1 million investment into Zulu Project to earn 30% through a five stage investment programme against project deliverables - fully funding DFS\n· On completion of the fifth stage of the investment\n§ Cadence will be granted a right of first refusal to increase its stake to 49% of the project\n§ Cadence will be awarded exclusive marketing rights on the sale of all mineral products\n· Cadence will have the right on the completion of the first stage of investment to...