Cadence signs MoU to earn 10% of Austria cobalt mine
Aim-listed Cadence Minerals has signed a binding memorandum of understanding with ASX-listed Clancy Exploration to earn an initial 10% interest in the high-grade Leogang cobalt-nickel sulphide project, near Salzburg, in Austria, through the issue of 73.7-million shares.
Under the terms of the MoU, Cadence has 14 days to complete the necessary due diligence and obtain board and regulatory approvals.
Cadence also has a six-month exclusive option to acquire a further 10% interest in Leogang by paying Clancy an additional A$1-million, either in cash or Cadence shares, or a combination of cash and shares, at the time of exercising its option.
“Cobalt, lithium and rare-earth elements, have been identified as key strategic minerals in the rapidly expanding electric vehicle market, with cobalt, in particular, facing the challenge of limited current reserves,” Cadence chairperson Andrew Suckling noted.
He added that financial services provider UBS estimated that in a 100% EV world, there would be a 1.928% incremental demand in cobalt, which is second only to a 2.898% incremental demand in lithium.
“In Europe, the EV market is forecast to reach penetration rates of around 30% by 2025. Cobalt and lithium are critical to current battery chemistry and supply will have to increase substantially over the coming years.
“Cadence believes that, like the Cinovec lithium project, in which we have a 21% interest, Leogang is a potentially important and strategic source of cobalt in the heart of Europe’s new battery manufacturing region,” said Suckling.
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