Last checked at 2 Sep 2020 12:09
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Amapa Iron Ore Project - Cadence Agrees In Principle To Settlement Terms Proposed By Amapa Bank Creditors.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on its investment in the Amapa Iron Ore Project ("Amapa Project"), Brazil.
DEV Mineração S.A's ("DEV"), Cadence and Indo Sino Pty Ltd ("the Investors") have agreed in principle to the settlement terms proposed by the secured bank creditors ("Bank Creditors"), and the administrator appointed to the Judicial Recovery Process ("JRP") has asked the parties to prepare and submit the final contract so that the JRP parties can be informed.
Once a final contract has been finalised and executed, this will represent satisfaction of the remaining major precondition for Cadence to make its initial 20% investment in the Amapa Project. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapa Project via our joint venture company which will own 99.9% of DEV.
In addition to the above, and while the settlement contract is finalised, DEV and Investors have requested that the Bank Creditors and DEV submit a joint petition to the higher court to remove the Bank Creditors appeal and the subsequent interim order. As a result, operations at Amapa, including the shipping of iron ore stockpiles will be temporarily suspended while the petition is agreed, filed and approved.
Details of the settlement agreement will be disclosed once final contracts are executed.
Cadence CEO Kiran Morzaria commented: "On behalf of the Cadence board, I am delighted to confirm that our board has agreed in principle to a settlement proposed by the secured bank creditors of Amapa. We look forward to preparing and finalising the settlement contract for submission to the JRP administrator. While the resulting delay in operations at Amapa is frustrating, it is a necessary part of the legal process that once finalised, will see Cadence complete the first phase of our investment. This will mark an historic milestone for our company, the Amapa project and region. I look forward to updating the market on our progress in the coming weeks."
"I would also like to put on record my sincere thanks to our people, who have worked tirelessly to bring us to this point amidst the unprecedented disruption created by COVID-19. We remain vigilant in ensuring that our employees, shareholders, contractors and their families continue to remain safe and secure."
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Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.