Cadence Minerals PLC Update on Amapa Iron Ore Project Investment (9245F)
March 12 2020 - 7:11AM
UK Regulatory
TIDMKDNC
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
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
UPDSFWFFEESSESD
(END) Dow Jones Newswires
March 12, 2020 07:11 ET (11:11 GMT)
Cadence Minerals (LSE:KDNC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cadence Minerals (LSE:KDNC)
Historical Stock Chart
From Jul 2023 to Jul 2024