Cadence Minerals grabs three highly prospective Aussie assets

Cadence Minerals has agreed to acquire three highly prospective assets in Australia across regions with proven high-grade lithium mineralisation.

The AIM-listed outfit acquired the properties via binding investment agreements it has had in place with Lithium Technologies and Lithium Supplies since 11 December 2017 to acquire up to 100% of six prospective hard rock lithium assets in Argentina.

Cadence will immediately start developing the Picasso, Litchfield and Alcoota projects in Western Australia and the Northern Territory, while still retaining its exposure to the six assets in Argentina.

In order to fund the acquisition, Cadence will issue 373.54m ordinary shares, valued at £400,000, to Lithium Technologies and Lithium Supplies to acquire a further 20% stake and assist its partners in the acquisition of Synergy Prospecting, which owns the three lithium projects in Australia. Cadence will also invest £300,000 to earn an incremental 7.5% stake.

Chief executive Kiran Morzaria said: "The board is delighted with this variation agreement since it will enable the exploration team in Australia to commence work immediately on developing prime lithium assets, starting with the Picasso project in Western Australia.

As of 0830 GMT, Cadence shares had collected 2.34% to 0.10p.