Local news12 Oct 2021 23:01
Dev Mineração receives approval to take over Zamin's operations in Amapá
The group of bank creditors from the former Zamin approved the company's proposal for judicial recovery, as informed by Cadence Minerals in a statement released this Monday (11).
The decision, according to the British company, paves the way for the joint venture formed by Cadence and Indo Sino to definitively assume the iron ore operation in Amapá through Dev Mineração.
In the statement, Cadence noted that approval by bank creditors' credit committees is still subject to "finalization of documentation" regarding the deal proposed in September last year.
But the UK miner noted that the decision helps "pave the way for Cadence to invest its initial 20% indirect stake in the Ferro Amapá Project," consisting of an integrated iron ore mine, processing plant, railroad and port. private.
The agreement with Indo Sino provides for the acquisition of 27% of the joint venture Pedra Branca Alliance which, with the settlement of the judicial reorganization process, will assume the equity of Dev Mineração, which will hold 99.9% of the Amapá iron ore operation. .
For this, Cadence will invest US$ 6 million in two stages, the first being US$ 2.5 million, corresponding to 20% of the JV, with a disbursement of US$ 3.5 million for the remaining 7%. The agreement allows Indo Sino to seek other partners in the business, but with preference for Cadence to acquire up to 49% stake.
“Cadence's investment is subject to several material pre-conditions, which include the granting of major licenses and the release of bank bonds on the asset,” noted the miner.
In mid-2020, the São Paulo Court authorized Dev to ship iron ore stocks up to a total of US$ 10 million to pay off part of Zamin's debts.
After two shipments of a total of 1.4 million tons of the input with a 32.12% iron content stored at the Port of Santana, in Amapá, the Court allowed the expansion of exports by another US$ 10 million with the aim of pay for the studies for the commissioning of the operation.
“After a long and drawn-out process, I am very happy to announce that we have now received approval from the credit committee for bank creditors to sign the settlement agreement”, celebrated Cadence's executive director, Kiran Morzaria, noting that, “in practical terms” means that the company “has a clear path and process to get Amapá recommissioned, licensed and back to production”.
Operation
Last year, Cadence updated the estimate of Amapá's mineral resources. According to the November 2, 2020 report, the operation contains an indicated resource of 176.7 million tonnes with an average grade of 39.7% Fe and an inferred resource of 8.7Mt to 36.9% Fe, an increase of 21 %.
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