Member Info for tomcat-14

Security being the stockpiles… defaults being cash payments or pba shares transfer to kdnc…

In a) it was by assigning the $50m credit… in b) it is a commitment to assign that $50m credit… with the security and defaults if they don’t…

And with a pfs valuation of $2bn… surely this is now our sell target… which they now need to deliver… with the 84.2% pfs discount suitably adjusted to account for the inherent value we have in the project… it being a brownfield development with significant existing infrastructure and $50m credit…

Why would we carry on funding amapa for another 3-months if that were the case… kdnc=35% by then… at a project valuation $110m - $190m…

Not talking about the conditions… this thread is about the money… there’s indo sino’s $50m de-risked credit… that looks to have been deferred from a) and replaced with the security and default clauses included in b)…

the $50m is yet to be assigned to pba… or kdnc receive cash and/or additional shares in pba…

Sorry… sidetracked… the clever bit…

a) Cadence's investment is conditional on several material pre-conditions, which include the grant of key operating licences, and On completion of Cadence's investment (not including the first right of refusal) our joint venture partner IndoSino will own 73% of JV Co by assigning its registered creditor rights and pledge over three iron ore stockpiles it holds in the Amapá Project to PBA. There are conditions precedent to Cadence's investment which mirror the conditions set out in the JRP this ensures that its investment risk is substantially mitigated…

b) Cadence's investment is conditional on several material pre-conditions, which include the grant of key operating licences and the release of bank securities over the asset. On completion of Cadence's investment (not including the first right of refusal) our joint venture partner Indo Sino will own 73% of JV Co. The Agreement also contains security and default clauses which if triggered causes an upwards adjustment mechanism to allow Cadence to either receive cash from JV Co or receive additional shares in JV Co. In the latter case Cadence's shareholding in the JV Co will not go above 49.9%.

the value of indo sino’s stockpiles is $50m…

Jimb… google ‘municipal clearance requirements’… not too far off i think…

I am struggling to believe that such a basic requirement with such huge significance and consequences could have been overlooked until now… unless either done vindictively or cunningly planned in the first place…

Here’s a thought… 💭

if you have a conditional agreement that goes unconditional on the granting of the licenses… but you’re not quite ready for that deal to go unconditional… could you introduce a zero risk last minute delay on the granting of the licenses… whilst at the same time putting the control of obtaining said clearances needed to allow the licenses to be granted… into your own hands…

It’s not gone anywhere… but we have shipped some of it already… and paid the bank creditors some of it… the value of what remains (x) less the value we’ve agreed to pay the bank creditors (y) will leave a surplus value of the stockpiles (z)…

x-y=z…

now the clever bit…

Not sure about that… it is quite explicit in respect to actually operating the railway…

Details of Railway Concession

The reinstatement of the Concessions were agreed between Cadence, Indo Sino Pte. Ltd. ("Indo Sino"), and the government of Amapá, including the state secretary of transport, state secretary of planning, state secretary of the environment, attorney generals office and the office of the Governor of Amapá.

The Concessions are in force for the life of the mine and allows DEV's 100% owned subsidiary to operate the railway, for the primary purpose of the transport of iron ore over 180 km from the mine to the it's port in Santana. The railway will be maintained and improved to an initial capacity of approximately 5.5 million tonnes of iron ore per annum and will provide a passenger and good service. The Concessions also allows DEV to expand the capacity of the railway to transport other goods, should there be commercial demand.

Difficult to say… but surely they have already got government and local authority clearances when they originally reinstated the rail concessions… for an extended period… https://www.lse.co.uk/rns/KDNC/reinstatement-of-railway-concessions-at-amap225-mwx7s7pw5st4ftd.html …

Another 30% amapa handed out to their complicit ii’s… wonder if they again remain anonymous… 🥸 🥸 🥸… these ones being plural…

Quick correction to the % in my earlier post which included 15m for the dfs…

We don’t…

pfs $1.977bn - 84.2% discount = $312m… (trade sale - no dfs)…

dfs** $1.977bn - 55% discount = $890m… (jv)…

the premium far outweighs the 2.5% or so dilution to fund a dfs…

Interesting to see if the licenses were granted on time… sweet dreams…

No 🧠er if you had the means… and a potential buyer that would pay the $600m premium… hence the disparity… and a seemingly concerted effort to get you to sell…

About $600m…

An how much value would 7m add to amapa…

How much will it cost for the dfs…

The common denominator…