Business
Partial sale of stake in Bacanora Minerals
Partial sale of stake in Bacanora Minerals.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 1375Q Cadence Minerals PLC 07 September 2017 \n\nCadence Minerals Plc\n(\"Cadence Minerals\", \"Cadence\" or \"the Company\")\nCadence Minerals delivers a £2.7 million profit on the partial sale of its equity stake in Bacanora Minerals Ltd.\nCadence Minerals is pleased to announce that it has sold approximately 8.90 million shares representing 42% of its equity stake in Bacanora Minerals Ltd (\"Bacanora\") for gross proceeds of £6.23 million. Cadence purchased these shares between June 2013 and September 2014 for £3.56 million. The realised gross profit from this sale is £2.67 million, or a 75% realised a return on our equity investment. \nAs announced in the cleansing statement on the 21 August 2017, Cadence Minerals was approached by a single strategic investor who was interested in taking a material portion of the total equity stake owned by Cadence in Bacanora. Subsequent to this, and after further negotiations, management determined that Cadence should re-engage with institutional investors to complete the sale. As such Cadence has sold approximately 8.9 million shares to several institutional investors, and it has for the time being ceased discussions with the strategic investor.\nCadence Minerals continues to have great confidence in Bacanora Minerals and its management team, and we look forward to being a supportive shareholder and joint venture partner in the development of the Sonora Lithium Project. We continue to believe that the Sonora Lithium Project has the potential to be a significant producer of battery grade lithium carbonate and will form an important part of the global lithium compound supply chain in the coming years.\nNonetheless given that Cadence is an Investment company, Cadence has taken this decision to realise some of the profits from this investment for two principal reasons. \nFirst, it is important of itself that we realise investment profits in a timely fashion for the benefit of the Company. \nSecond, this is also a strategic decision to redeploy some of the sale proceeds for reinvestment in other early stage mineral exploration companies where we can both hold larger stakes and add our considerable mining and financial management expertise to achieve returns of a similarly high level to those made on our Bacanora investment to date.\nThe board and its strateg...