4th Mar 2019 12:24
LONDON (Alliance News) - Cadence Minerals PLC on Monday said it agreed to acquire three "highly prospective assets" in Australia located in regions with proven high-grade lithium mineralisation.
The acquisition covers the Picasso, Litchfield and Alcoota projects. The company will have the opportunity to start developing the three assets immediately.
Cadence agreed a variation to agreements previously entered with Lithium Technologies Pty Ltd and Lithium Supplies Pty Ltd by which Cadence was given the option to acquire a 100% stake in both.
Now, Lithium Technologies and Lithium Supplies will between them acquire 100% of Synergy Prospecting Ltd, which owns the three lithium projects in Australia.
Cadence has agreed to move forward with increasing is ownership in Lithium Technologies and Lithium Supplies to 31.5 from 4.0% via the issue of 373.5 million Cadence shares valued at GBP400,000 to acquire a further 20% stake.
It also will invest GBP300,000 cash to earn an incremental 7.5% stake, with the funds earmarked to commence developing Synergy's lithium assets in Australia.
Cadence shares were trading up 4.2% at 0.11 pence each.
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