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Cradle Resources Receives Notice Of Initial Substantial Holder

Cradle Resources (ASX:CXX) has received a notice of initial substantial holder, which shows that Tremont Investments Limited now holds over 8.3 million shares, or a 6.49% stake.

Tremont Investments is an African focused mining platform backed by Denham Capital.

Cradle currently owns 50% of the Panda Hill Project with an option to purchase the balance for US$14 million.

Tremont Investments is farming in to earn 50% of Cradle's interest in the project.

Tremont Investments

Tremont Investments recently exercised its right to acquire a further 12.5% of the Panda Hill Niobium Project in Tanzania for a further US$5 million (AUD$6.25M) investment, taking it to 37.5% in total.

To date Tremont has invested US$10 million in two separate tranches.

Panda Hill is the most viable development project in niobium in four decades.

There are only three niobium producers globally, with no new producers since 1976.

Panda Hill

The Panda Hill project is located in Tanzania, and hosts a JORC Resource of 178 million tonnes at 0.50% Nb2O5 (above a 0.3% Nb2O5 lower cutoff).

The gold equivalent is 15 million ounces at 2.6g/t gold.

Cradle's plan at Panda Hill

DFS complete 4th quarter 2015 (US$5 million):

- Engineering designs based on a 1Mtpa plant ramping up to 2Mtpa after payback period.
- Pilot plant testing (milling, flotation and leach) - May to August 2015.
- Cost estimates - November 2015.
- Environmental certification - July 2015.
- Off-take negotiations - March to Sept 2015.

2015/2016 - development of Project (50/50 funding with Tremont):

- Estimated US$15M initial Capex (includes working capital and pre-production costs for 1Mtpa).
- Estimated 50% debt / 50% equity (Tremont experienced with African project financing and coordinating process).

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