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Cadence boosted as investee zeros in on double zinc project purchase
Cadence Minerals received a boost on Tuesday after its investee company Auroch Minerals announced its intentions to acquire two zinc projects in South Australia.
Subject to shareholder approval, Auroch will acquire 100% of the Bonaventura Zinc Project 1, which covers highly prospective geology and historic mines, and 90% of the Arden Zinc Project, which has the potential to host large scale zinc, lead, copper and cobalt deposits.
Previous drilling at the Bonaventura project hit high grade zinc intersections and samples from the site's historic Kohinoor gold mine returned grades up to 28 g/t.
Meanwhile, the Arden Project has yielded up to 2.5% water in recent sampling at the Kanyaka site and is supported by "excellent infrastructure," according to Cadence.
Cadence currently owns a 7.7% equity stake in zinc, cobalt and lithium exploration company Auroch Minerals.
Kiran Morzaria, chief executive of Cadence, said: "We are pleased to see Auroch Minerals pursue acquisitions which are in historical mine areas and contain multiple highly prospective targets."
As of 1553 GMT, Cadence Minerals' shares were up 4.35% at 0.24p.