Progress with Secured Bank Creditors
Since our last update in early August, DEV Mineração S.A’s Cadence and Indo Sino Pty Ltd have continued a constructive dialogue with the secured bank creditors and the parties are currently negotiating the settlement terms as proposed by the Bank Creditors.
As mentioned in previous announcements, the remaining major precondition for Cadence to make its initial investment in the Amapa Project requires DEV to reach a settlement agreement with the Bank Creditors. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapa Iron Ore Project via our joint venture company which will own 99.9% of DEV Mineração S.A’s.
Further details about Cadence’s rights, potential investment, and the Judicial Restructuring Plan in relation to the Amapa Project are presented in our annual accounts published at the end of June and the announcements of the 30 August 2019 and 7 August 2019.
Commercial Court of São Paulo
On the 28 July, the Court, responding to an appeal by the Bank Creditors, reaffirmed its decision of April this year allowing DEV to commence shipping iron ore from the stockpiles situated at DEV’s wholly-owned port in Santana, Amapa. Cadence Minerals has been informed that the Bank Creditors have now filed an appeal to a higher court, none the less the original ruling still remains in force.