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Pin to quick picksCadence Mineral Regulatory News (KDNC)

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Update on Amapa Iron Ore Project Investment

12 Mar 2020 11:11

RNS Number : 9245F
Cadence Minerals PLC
12 March 2020
 

Cadence Minerals Plc

 

("Cadence Minerals", "Cadence" or "the Company")

 

Update on Investment in the Amapá Iron Ore Project, Brazil.

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on its investment in the Amapá Iron Ore Project, Brazil.

The Amapá Project

The Amapá Project was owned by Anglo American plc and Cliffs Natural Resources and consists of a large-scale iron ore mine, beneficiation plant, railway and private port. Before its sale in 2012, Anglo American valued its 70% stake at US $462m in its 2012 Annual Report (100% US $600m). The Amapá Project is 99.9% owned by DEV Mineração S.A. ("DEV").

Successful Reinstatement of Railway Concession

Following the approval of the judicial restructuring plan ("JRP") announced on August 30th, 2019, Cadence along with its partners successfully negotiated the reinstatement of a life of mine railway concession. The grant of this railway concession was announced on December 9th, 2019.

Satisfaction of Final Precondition

Currently, there remains only one major precondition for Cadence to make its investment in the Amapá Project, the sum of US$2.5 million currently held in escrow in a judicial trust account ("Escrow Monies").

This precondition requires DEV Mineração S.A. ("Dev") to reach a settlement agreement with the secured bank creditors. Since our last update, Cadence and our joint venture partners Indo Sino Pte. Ltd. ("Indo Sino") have been in negotiations with the secured bank creditors, and we have offered a settlement involving a discount on the amounts owned by Dev.

This settlement is intended to be paid from part of the proceeds from the sale of the iron ore stockpile currently held at Dev's 100% owned port facility in Santana, Amapá. Alongside our partners, we continue to negotiate with the secured bank creditors, and we will update the market once a binding agreement is reached.

On satisfaction of the preconditions and the release of the Escrow monies, Cadence will become a shareholder in the Amapá Project via our joint venture company which will own 99.9% of Dev. The Escrow Monies will then be used for the payment of former employees and small trade creditors. Once Cadence becomes a shareholder in the Amapá Project, the Government of Amapá will permit Dev to start operations on the asset including the shipment of iron ore from the port.

Cadence Non-Executive Chairman Andrew Suckling commented; "The remarkable progress made by Cadence management, Indo Sino and the Governor of Amapá and his team in bringing the Amapá Project back to life continues. We are moving ever closer to commencing the process of turning Amapá, and its dormant potential into a key contributor to the regional economy, with all the employment, health and educational benefits that will bring to this part of Brazil."

Cadence CEO Kiran Morzaria commented; "Since securing the Railway concessions last December, we have worked tirelessly to settle with Dev's secured bank creditors. It is my belief, that assuming that we are able to satisfy this final precondition, Cadence is on the cusp of a company changing event, one that will create a long-lasting store of value for our Company and shareholders, as well as returning some prosperity to the Amapá region.

- Ends -

For further information:

Cadence Minerals plc

+44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

+44 (0) 207 220 1666

James Joyce

James Sinclair-Ford

Novum Securities Limited (Joint Broker)

+44 (0) 207 399 9400

Jon Belliss

 

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
UPDSFWFFEESSESD
Date   Source Headline
28th Mar 20249:59 amRNSUpdate on Amapá Project investment & Equity Stake
27th Mar 202410:25 amRNSEuropean Metals Holdings - Cinovec Project Update
22nd Mar 20247:00 amRNSOptimisation Study Delivers Savings at Amapá
14th Mar 20249:18 amRNSCorporate Update - Evergreen Lithium
7th Mar 20247:00 amRNSProgress at the Amapá Project & Corporate Update
29th Jan 202410:05 amRNSCorporate Update
29th Jan 20249:53 amRNSEMH - Cinovec Exploration Licenses
22nd Jan 20248:56 amRNSCorporate Update - Evergreen Lithium (ASX: EG1)
22nd Dec 20238:15 amRNSCorporate Update – European Metals Holdings
30th Nov 20239:06 amRNSCorporate Update - Evergreen Lithium
22nd Nov 202311:39 amRNSCorporate Update - Hastings Technology Metals
16th Nov 20237:00 amRNSSonora Lithium Investment Update
9th Nov 20239:12 amRNSCorporate Update - European Metals Holdings
31st Oct 20237:00 amRNSDirector Share Purchases
30th Oct 20237:00 amRNSStrategic Development and Financing
29th Sep 20239:53 amRNSInterim Results
18th Sep 20238:43 amRNSCorporate Update - Evergreen Lithium
12th Sep 20239:10 amRNSCorporate Update - Hastings Technology Metals
11th Sep 20239:44 amRNSAmapá Iron Ore Project Update
31st Aug 20237:52 amRNSSonora Lithium Investment Update
16th Aug 202311:52 amRNSResult of AGM
4th Aug 20238:55 amRNSCorporate Update - Hastings Technology Metals
25th Jul 202312:25 pmRNSNotice of AGM
21st Jul 202310:12 amRNSCorporate Update – European Metals Holdings
28th Jun 20239:11 amRNSCorporate Update - Evergreen Lithium ANT Analysis
27th Jun 20237:00 amRNSAnnual Results for the year ended 31 December 2022
13th Jun 20239:49 amRNSCorporate Update - Hastings Technology Metals
9th Jun 202311:46 amRNSUpdate EMH Land secured for Cinovec lithium plant
1st Jun 20239:01 amRNSCorporate Update - Evergreen Lithium
31st May 202312:52 pmRNSCorporate Update - Hastings Technology Metals
26th May 20232:48 pmRNSAmapa Project Update & Loan Financing
25th May 20231:43 pmRNSCorporate Update - Evergreen Lithium (ASX: EG1)
25th May 20238:42 amRNSEMH Announcement: Outstanding Lithium Recoveries
10th May 202312:12 pmRNSCorporate Update - Evergreen Lithium (ASX: EG1)
3rd May 20235:17 pmRNSCorporate Update - Hastings Technology Metals
13th Apr 20238:56 amRNSNotice of Substantial Shareholder in Evergreen
1st Mar 20237:00 amRNSCorporate Update
30th Jan 202311:47 amRNSEuropean Metals Announcement: Just Transition Fund
26th Jan 20238:26 amRNSListing of Evergreen Lithium on the ASX
25th Jan 20238:35 amRNSCompletion of Sale of Yangibana JV Interest
10th Jan 20232:05 pmRNSSecond Price Monitoring Extn
10th Jan 20232:00 pmRNSPrice Monitoring Extension
6th Jan 20237:00 amRNSDirector Share Purchases
3rd Jan 20237:00 amRNSCompletion of PFS on Amapá Iron Ore Project
30th Dec 20227:00 amRNSCorporate Update
31st Oct 20229:00 amRNSInvestment Update
7th Oct 20227:00 amRNSMineral Resource Increase & Upgrade Amapá Project
28th Sep 20227:00 amRNSInterim Results for six months ended 30 June 2022
10th Aug 20223:50 pmRNSResult of AGM
12th Jul 20227:00 amRNSDirector Share Purchases

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