14th May 2019 16:46
LONDON (Alliance News) - Cadence Minerals PLC said Tuesday it was pleased with Macarthur Minerals' new option agreement with Fe Ltd covering 19 tenements in Australia.
Cadnce owns a 10% stake in Macarthur, which has entered an exclusive option agreement with Fe, under which Fe can acquire an up to 75% interest in the tenements. The 19 tenements are "highly prospective for gold, copper, and lithium".
Macarthur granted a 45-day option so that Fe can conduct due diligence and obtain necessary funding. Cadence will pay a non-refundable option fee to Macarthur totalling AUD100,000, or GBP53,779.
If Fe does choose to exercise the option within those 45 days then AUD400,000 will be payable to Macarthur. Once it pays the exercise fee, Fe will then have the right to earn its up to 75% interest.
Macarthur will be joint venture manager and receive a 10% project management fee on the tenements, which is excluded from earn-in expenditure. Fe can withdraw from the earn-in at any point and will not have to pay a penalty.
Cadence Chief Executive Kiran Morzaria said: "As stated by Macarthur Executive Chair Cameron McCall, this transaction will allow the company to focus its efforts towards bringing Macarthur's Moonshine magnetite iron ore projects into production. We at Cadence fully support this strategy given the current environment for the global iron ore market."
Shares in Cadence closed flat at 0.14 pence on Tuesday.
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