Announcement
Cadence Minerals PLC : Contract Awarded for Yangibana Processing Plant
RNS Number : 5567Q
Cadence Minerals PLC
21 October 2019
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Hastings Technology Metals (ASX:HAS) - DRA Pacific Awarded EPCM Contract Yangibana Processing Plant.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce Hastings Technology Metals (ASX:HAS) ("Hastings"), Cadence's joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia ("Yangibana Project"), has announced that it has awarded the Engineering, Procurement, Construction and Management (EPCM) contract for its rare earths processing plant and the associated infrastructure for the Yangibana process plant in the Gascoyne Region of Western Australia to DRA Pacific Pty Ltd ("DRA Pacific"), a diversified global engineering, project delivery and operations management. The appointment of DRA Pacific as the EPCM contractor for the Yangibana Project was preceded by a series of value engineering studies and the Front-End-Engineering-Design ("FEED") completed by DRA Pacific during 2018 and 2019. DRA Pacific's EPCM contract will cover all aspects of the design and construction of the processing facility and associated non-process infrastructure capable of producing 15,000 tonnes of Mixed Rare Earths Carbonate (MREC) per year.
Cadence Minerals Yangibana Holding:
Cadence owns 30% of the Yangibana North, Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North Rare Earth Deposit, which form part of the Yangibana Rare Earth Deposit. Probable Ore Reserves of some 2.1 million tonnes at 1.66% total rare earth elements are contained within 30% owned joint venture tenements. Further details of these reserves and pre-feasibility study can be found at: http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2688632.
Highlights:
· DRA Pacific Pty Ltd awarded the Engineering, Procurement and Contract Management (EPCM) Contract for the Yangibana Rare Earths Processing Plant.
· The scope of works under the DRA Pacific Pty Ltd EPCM agreement has an estimated capital value of circa A$350m.
· DRA Pacific's parent DRA Global Ltd have extensive experience in designing and building mineral processing facilities worldwide and their personnel have previously delivered rare earth plants in Western Australia.
· The key component of the contract terms is the comprehensive performance guarantee linked to ore throughput for the entire process flow sheet.
The EPCM contract is the single largest dollar value contract associated with the Yangibana Project. It is also a fundamental requirement of Hastings' debt providers and hence is pivotal to the project financing process. Works directed under the EPCM Contract have an estimated value of approximately A$350M.
The key component of the contract terms is the comprehensive performance guarantee linked to ore throughput for the entire process flow sheet.
The appointment of DRA Pacific as the EPCM contractor for Hastings represents another critical milestone for the Project, reinforcing that Yangibana is execution ready.
Choosing DRA Pacific was the logical choice given the already close working relationship built up over the last 15 months, and the experience in rare earths processing plant design that DRA Pacific bring to the table.
The full release can be found at: https://www.asx.com.au/asxpdf/20191021/pdf/449nzf57qlq659.pdf
Hastings Executive Chairman Charles Lew said: "We are pleased to have DRA involved in the construction of the Yangibana processing plant. Their knowledge and experience in developing successful minerals processing projects makes them the ideal candidate to manage the construction of our project. The award of the EPCM contract moves the Yangibana Rare Earths Project firmly into development phase to commence project execution and progress to production of our mixed rare earth carbonate by 2022."
Cadence CEO Kiran Morzaria commented: "The appointment of DRA Pacific represents a key step for Yangibana. Not only is it key to the project funding going forward, the EPCM contract terms include a comprehensive performance guarantee linked to ore throughput. Today's announcement provides further validation for our investment strategy into the Yangibana joint venture with Hastings."
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For further information:
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Cadence Minerals plc |
+44 (0) 207 440 0647 |
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Andrew Suckling |
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Kiran Morzaria |
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WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
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James Joyce |
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James Sinclair-Ford |
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Novum Securities Limited (Joint Broker) |
+44 (0) 207 399 9400 |
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Jon Belliss |
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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 identified 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 reflect 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.
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