Cadence Minerals plc said it had sold its interests in the Yangibana rare earth elements (REE) project in Gascoyne, Western Australia for A$9 million (£5.1m) to joint venture partner Hastings Technology Metals.
TRANSACTION
The company added that its 30% working interest in the tenements covered a small portion of Yangibana and potentially represented one year of the 16-year mine life.
Cadence entered a binding agreement to sell its interest to the operator and owner by the issue of fully paid ordinary Hastings shares, providing equity exposure to 100% of the project.
The NPV of the Yangibana project is currently AS$1 billion.
YANGIBANA
Cadence said that the Yangibana was a “significant Australian rare earths project, containing substantial neodymium and praseodymium resources”.
The project currently covers 650km2 containing some nine mining leases, two prospecting licences and 19 exploration licences.
Cadence holds a 30% interest in three mining leases and six exploration licences.
Hastings has started site construction and plans commissioning of the beneficiation plant to begin in late 2023.
INVESTMENT
“The sale of our 30% interest in a part of the Yangibana rare earths project provides Cadence with an excellent return on its initial investment and equity exposure to the entire project,” said chief executive Kiran Morzaria.
“Yangibana’s importance as a key REE resource today cannot be overstated.”