RE: Amapa IRR8 Sep 2019 17:49
For me, this is a key point:
"Union Jack Oil, Cadence Minerals, Chris Bailey, Russ Mould and Glen Goodman" (30 Aug)
https://audioboom.com/posts/7355653-union-jack-oil-cadence-minerals-chris-bailey-russ-mould-and-glen-goodman
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...now the way that we structured our investments, our first investment only occurs after ... the railway concessions are granted, and then our next investment, $3.5m, only occurs when every single operational and environmental licence is granted.
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I'm wondering if we'll raise the $3.5m (from what we've got in the bank, from new debt/CLN's, issuing new equity, selling assets, other?) before or after "every single operational and environmental licence is granted". If it's before, I presume it will be because we have to make the funds available before the licences are granted, in the same way we did for the $2.5m now waiting on the railway licences to be granted, before it is released. However, if it is after all lights are green and the project is a go, then if it is equity based we really should be able to raise at a significantly greater share price than today's given the value unlocked by the further $3.5m (according to my estimates perhaps an NPV of £100-250m to KDNC!) - all things being equal of course.
What @Kiran says in the interview is summarised here:
"Approval of Judicial Restructuring Plan Paves the way for the Restart of the Amapá Iron Ore Project." (30 August 2019)
http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2887382
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Cadence Amapá Project stake
Once the preconditions relating to the railway licenses and bank creditor arrangements have been met, the US$2.5 million investment placed in the judicial trust account will be released, and Cadence will own 20% of the Amapá iron ore project. Cadence's next stage of investment will be a further investment of US$3.5 million on the grant of all operational and environmental licenses for the Amapá Project, at which point Cadence will own 27%. Cadence also has first right of refusal to increase its stake to 49% in the Amapá Project.
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Ob.
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