(Alliance News) - Cadence Minerals PLC announced on Thursday that it increased its investment in the Amapa iron ore project in Brazil.
The London-based mineral resource investor's total investment in the project at the end of September 2023 stood at approximately USD12.1 million, with an equity stake of 33%.
As of March 28 the company has invested a further USD1.1 million and its stake now stands at 34%.
Chief Executive Officer Kiran Morzaria said: "As our involvement and commitment to the Amapa project increases, we're ever more excited and enthused by the potential and promise that the newly recommissioned mine and infrastructure is set to deliver. With robust mineral resources and ore reserves, coupled with solid financial projections, we stand poised to unlock substantial value, and our increased equity stake reflects our confidence in the project's potential."
The project is about to undergo an amended economic assessment at a pre-feasibility study level based on the positive results from studies released earlier this month.
This study will include lower capital expenditure, higher production rate and a possible reduction in mining costs.
The Amapa project is committed to having a 67% iron ore product flow sheet and is anticipated to have a production rate of 5.5 million tonnes per annum.
Cadence Minerals shares were down 1.7% to 5.16pence each in London on Thursday afternoon.
By Elijah Dale, Alliance News reporter
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Cadence Mineral (KDNC)