Cadence Minerals update on Investment in the Amapa Iron Ore Project, Brazil

Iron Ore

Cadence Minerals plc (LON/NEX: KDNC; OTC: KDNCY) has provided an update on its investment in the Amapa Iron Ore Project, Brazil.

Progress with Secured Bank Creditors

Since our last update in early July, DEV Mineração S.A’s (“DEV”) Cadence and Indo Sino Pty Ltd have continued a constructive dialogue with the secured bank creditors. The Bank Creditors have proposed settlement terms, and DEV and the Investors have agreed in principle (subject to contract) to key terms and have proposed some amendments. We will update the market once further progress has been made.

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 (“DEV”).

Further details about Cadence’s rights, potential investment, and the Judicial Restructuring Plan in relation to the Amapa Project are presented in 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 allowing DEV to commence shipping iron from the stockpiles situated at DEV’s wholly-owned port in Santana, Amapa.

Operational Update

Companhia Docas de Santana, a public (municipal) company and the port operator has asked for some additional non-statutory contractual requirements and undertakings; DEV has provided the requested documentation, and it is liaising with The State of Amapa whom will provide the necessary documents to CDSA. Cadence will provide an update once the first shipment is underway.

Cadence Minerals CEO Kiran Morzaria commented: “Our team have worked tirelessly to complete the final stages of our investment into the Amapá project. I am pleased that we have progressed our discussions with the Bank Creditors and we move ever closer to what will be a historic milestone for our company. The COVID-19 crisis has impacted Brazil and the state of Amapa, and as such, the safety of our staff, colleagues and their families remains a top priority.”

About the Amapá Project

The Amapá Project was owned by Anglo American plc and Cliffs Natural Resources and consists of a large-scale iron ore mine, beneficiation plant, railway, and private port.  In 2012 the operation produced 6.1 Mt of iron ore concentrate and reported operating profits from their 70% ownership in the Amapá Project of US$120 million (100% – US$171 million). Before its sale in 2012, Anglo American valued its 70% stake at US$462m in its 2012 Annual Report (100% – US$600m).

As previously announced, the total historical mineral resource contains an estimated 348 Mt of ore @ 38.9% iron content (“Fe”). The ore is beneficiated at the mine to 65% Fe Pellet Feed and 62% Fe Spiral Concentrate. Based on available historic mine plans and an independent consultant review, it is expected that at full production the Amapá Project has a mine life of 14 years and at full capacity is targeting to produce up to 5.3 Mt of iron ore per annum.

Find more news, interviews, share price & company profile here for:
Cadence Minerals plc

Good news travels fast (but only if you make that happen):

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook
Share on email
Email
Share on whatsapp
WhatsApp
Find more news, interviews, share price & company profile here for:
Cadence Minerals plc

AIM All Share Index