Welcome to Cradle Resources Limited
Cradle Resources Limited (ASX: CXX) has been transformed into an international niobium development company through its ownership of a 49% interest in the Panda Hill Niobium Project in Tanzania, with the rights to acquire the balance. The acquisition makes CXX one of the few niobium developers in the world with the market tightly controlled by three large producers and 90% of the supply coming from Brazil.
Recently Cradle has executed a binding agreement with Tremont Investments Limited (Tremont) to provide up to US$20 million (A$21.5 million) to earn up to 50% of the Panda Hill Niobium Project in Tanzania. Tremont is an African focussed mining platform backed by Denham Capital, a leading energy and resources global private equity firm. Pangea Exploration, advisors to Tremont, is based in South Africa and led by Rob Still. It is anticipated that the Definitive Feasibility Study for Panda Hill will be completed upon expenditure of about US$15 million, with any additional subscription going towards project development.
Cradle's managing Director, Grant Davey said in respect of the transaction:
"Cradle is very excited to introduce an investor of the calibre of Tremont to assist in the development of the world class Panda Hill Niobium Project. Having spent the 4 months conducting extensive due diligence, Tremont’s US$20 million commitment is a positive reinforcement of the quality of the Project. Cradle is now in the enviable position of having an experienced partner with the financial, commercial and technical strength to help drive the Panda Hill project into production."
The Panda Hill Niobium Project is located in the Mbeya region, near the borders with Zambia and Malawi, approximately 650km west of the capital Dar es Salaam. The industrial city of Mbeya is situated only 35km from the Project area and will be a significant service and logistics center for the Project. Mbeya has a population of approximately 280,000 people, located on the main highway and railway to the capital Dar es Salaam.
A significant historical technical database on the Project has been acquired by Panda Hill, including drill core, mapping and assay data from campaigns undertaken in the 1950-1980s.