Cadence Minerals PLC Corporate Update (5655F)
July 15 2019 - 8:05AM
UK Regulatory
TIDMKDNC
RNS Number : 5655F
Cadence Minerals PLC
15 July 2019
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Corporate Update
Cadence Minerals (AIM/NEX: KDNC) is pleased to provide a
corporate update covering the development on the Amapá Iron Ore
Project and a restructuring of the Company's loan notes.
Amapá Iron Ore Project Update
Cadence announced on the 7 June that it had entered into a
binding investment agreement with Indo Sino Pte. Ltd. ("Indo Sino")
to invest in and acquire up to a 27% interest in the former Anglo
American plc and Cliffs Natural Resource Amapá iron ore mine,
beneficiation plant, railway and private port ("Amapá Project")
owned by DEV Mineração S.A. ("Amapá").
As previously announced Cadence's investment is conditional,
amongst other matters, on the approval of a judicial restructuring
plan ("JRP") submitted by Cadence and Indo Sino to the Sao Paulo
Commercial Court in Brazil and the transfer of 99.9% of the issued
share capital of Amapá to the Cadence and Indo Sino joint venture
company ("JVCo").
Cadence is pleased to confirm that it has placed US$2.5 million
into a judicial trust account of the commercial court of São Paulo.
These funds will be held in escrow until the preconditions of the
JRP are met, which include the approval of the JRP at a creditors
meeting, and the grant of key operational licenses. We currently
anticipate that the creditors meeting will occur at the end of
August.
Once all the JRP preconditions are met (which mirror the
preconditions in our investment agreement with Indo Sino) the
US$2.5 million will be released and Cadence will own 20% of the
Amapá Project.
In anticipation of the approval of the JRP and completion of the
preconditions the JVCo is starting several key workstreams,
including updating the mineral resource to current standards,
beneficiation plant and mine plan reviews and a preliminary
economic study amongst others. We look forward to reporting on
these over the coming months.
Further information on the project is available in the Company's
announcement on 21 May 2019
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/KDNC/14082106.html
Further information on the binding investment agreement is
available in the Company's announcement on the 7 June 2019
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/KDNC/14102294.html
Restructuring of Loan Notes
Cadence announced on the 24 November 2018 that it had refinanced
its outstanding loan notes by entering into a US$4.87 million
amortising loan note with a consortium of institutional lenders,
which was due to be fully repaid on the 1 December 2019
("Amortising Loan Note"). At the date of publication, the
outstanding principle balance of the Amortising Loan Note is
US$2.23 million.
Cadence has completed the restructure of two of the three
outstanding loan notes with the same consortium of institutional
lenders. The two new loan notes will repay US$ 1.19 million of the
Amortising Loan Note and have been restructured as a convertible
loan note with an exercise price of 0.12 pence and will attract an
effective annual interest rate of 7.9% ("Convertible Loan
Note")
Cadence will initially only pay the interest on the Convertible
Loan Note until the 1 January 2020, after which 50% of the
outstanding balance will be paid back over 8 months (1 August
2020). The outstanding 50% will be paid back on 1 September
2020.
In addition, and to, in part, fund the working capital
requirements of the Amapá Project, as outlined above, Cadence has
drawn down a further US$ 1.25 million of the Convertible Loan Note
under the same terms. After this draw down the outstanding balance
on the Convertible Loan Note US$2.44 million. The note is secured
over the Company's assets.
The Company is finalising terms to fund the balance of the
Amortising Loan Note, which is anticipated to be on the same terms
of the Convertible Loan Note announced today.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
- 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
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END
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