Cadence Minerals - Sonora project update
Cadence Minerals has provided an update on the status of the Sonora lithium project in Mexico. The company holds a 30% interest in seven project concessions through the JV entities Mexilit and Megalit, which are majority controlled by Ganfeng. Following the amendments to the Mexican mining law introduced in April and May 2023, the General Directorate of Mines (DGM) issued a formal notice indicating that all lithium concessions underpinning the Sonora project were cancelled, citing a lack of sufficient disclosure regarding the minimum investment obligations. Both Ganfeng and Cadence believe that the required obligations were met in full and sufficient evidence was provided to the Mexican authorities. The decision is not final and is subject to ongoing appeals. While the news is somewhat disappointing, we note that Sonora represents a relatively small part of our valuation of Cadence, which is driven by the Amapá iron ore project.Cadence Minerals is engaged in identification, investment and development of Lithium and rare earth assets. Co. is also exploring other mining related opportunities.
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