Cadence Minerals PLC Amapa Update (7610V)
August 11 2020 - 2:00AM
UK Regulatory
TIDMKDNC
RNS Number : 7610V
Cadence Minerals PLC
11 August 2020
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Update on Investment in the Amapa Iron Ore Project, Brazil.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
provide an update on its investment in the Amapa Iron Ore Project,
Brazil.
Progress with Secured Bank Creditors
Since our last update in early July, DEV Mineração S.A's ("DEV")
Cadence and Indo Sino Pty Ltd ("the Investors") have continued a
constructive dialogue with the secured bank creditors ("Bank
Creditors"). The Bank Creditors have proposed settlement terms, and
DEV and the Investors have agreed in principle (subject to
contract) to key terms and have proposed some amendments. We will
update the market once further progress has been made.
As mentioned in previous announcements, the remaining major
precondition for Cadence to make its initial investment in the
Amapa Project requires DEV to reach a settlement agreement with the
Bank Creditors. On completion of the conditions and the release of
the Cadence escrow monies, Cadence will become a 20% shareholder in
the Amapa Iron Ore Project via our joint venture company which will
own 99.9% of DEV Mineração S.A's ("DEV").
Further details about Cadence's rights, potential investment,
and the Judicial Restructuring Plan in relation to the Amapa
Project are presented in the announcements of the 30 August 2019
and 7 August 2019.
Commercial Court of São Paulo ("the Court")
On the 28 July, the Court, responding to an appeal by the Bank
Creditors, reaffirmed its decision allowing DEV to commence
shipping iron from the stockpiles situated at DEV's wholly-owned
port in Santana, Amapa.
Operational Update
Companhia Docas de Santana ("CDSA"), a public (municipal)
company and the port operator has asked for some additional
non-statutory contractual requirements and undertakings; DEV has
provided the requested documentation, and it is liaising with The
State of Amapa whom will provide the necessary documents to CDSA.
Cadence will provide an update once the first shipment is
underway.
Cadence CEO Kiran Morzaria commented: "Our team have worked
tirelessly to complete the final stages of our investment into the
Amapá project. I am pleased that we have progressed our discussions
with the Bank Creditors and we move ever closer to what will be a
historic milestone for our company. The COVID-19 crisis has
impacted Brazil and the state of Amapa, and as such, the safety of
our staff, colleagues and their families remains a top
priority."
About 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. In 2012 the
operation produced 6.1 Mt of iron ore concentrate and reported
operating profits from their 70% ownership in the Amapá Project of
US$120 million (100% - US$171 million). Before its sale in 2012,
Anglo American valued its 70% stake at US$462m in its 2012 Annual
Report (100% - US$600m).
As previously announced, the total historical mineral resource
contains an estimated 348 Mt of ore @ 38.9% iron content ("Fe").
The ore is beneficiated at the mine to 65% Fe Pellet Feed and 62%
Fe Spiral Concentrate. Based on available historic mine plans and
an independent consultant review, it is expected that at full
production the Amapá Project has a mine life of 14 years and at
full capacity is targeting to produce up to 5.3 Mt of iron ore per
annum.
- Ends -
For further information:
Cadence Minerals plc +44 (0) 7879 584153
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
identi ed 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 re ect
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
MSCKKDBNPBKKBFD
(END) Dow Jones Newswires
August 11, 2020 02:00 ET (06:00 GMT)
Cadence Minerals (LSE:KDNC)
Historical Stock Chart
From May 2024 to Jun 2024
Cadence Minerals (LSE:KDNC)
Historical Stock Chart
From Jun 2023 to Jun 2024