Cadence Minerals PLC - UK-based mineral resources investor - Notes that DEV Mineracao SA has started the shipment of iron ore stockpiles from Santana in Amapa, Brazil, after it was approved by the Upper Court of Brazil.
The first shipment of 45,000 tonnes of iron from the Amapa iron ore project has started, with the vessel due to sail this week. The shipment will allow DEV to realise a USD10 million profit.
In September, Cadence announce that the company itself, as well as DEV Mineracao SA and Indo Sino Pty Ltd, had agreed in principle to settlement terms proposed by secured bank creditors. Detailed talks and legal document drafting continue and an update will be published once binding documents are executed.
Such an agreement with bank creditors would satisfy the remaining major precondition for Cadence's initial 20% investment in the Amapa iron ore project in Brazil. On completion of conditions and release of Cadence escrow monies, the company will become a 20% shareholder in Amapa via its joint venture company, which will own a 99.9% stake in DEV.
"The first iron ore shipment from Amapa since 2015 and the resultant earnings represent a milestone of huge significance, both for our board and team who have worked so hard to bring the project back to life and for the potential opportunities and benefits it will bring to the wider Amapa community," says Chief Executive Officer Kiran Morzaria.
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By Dayo Laniyan; dayolaniyan@alliancenews.com
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Cadence Mineral (KDNC)