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RNS Number : 9016D
Cadence Minerals PLC
02 November 2020
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Amapa Iron Ore Project - Update on Bank Creditor Settlement and
Operational Progress
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
provide an update on its investment in the Amapá Iron Ore Project
("Amapá Project"), Brazil.
Settlement of Bank Creditors
In early September this year, we announced that DEV Mineração
S.A's ("DEV"), Cadence and Indo Sino Pty Ltd ("the Investors")
agreed in principle to the settlement terms proposed by the secured
bank creditors ("Bank Creditors"). The legal drafting of the
settlement agreement and supporting documents continues, and we
look forward to updating the market once these documents are
executed.
The execution of a settlement agreement with the Bank Creditors
would represent the satisfaction of the remaining major
precondition for Cadence to make its initial 20% investment in the
Amapá Project. On completion of the conditions and the release of
the Cadence escrow monies, Cadence will become a 20% shareholder in
the Amapá Project via our joint venture company, which will own
99.9% of DEV.
Operations
While work on the settlement agreement has been ongoing,
operations have continued to progress at the Amapá Project. This
work includes updating the assessment of mineral resources,
advancing the scoping study, updating its mining rights and
investigating the installation of an interim shipment facility
outside the public port to increase the capacity associated with
the shipment of the iron ore stockpiles.
As previously announced, there was a historic mineral resource
published by Anglo American in 2012 which was prepared under the
Australasian Code for Reporting of Exploration Resources and Ore
Reserves 2004 edition; however, given the passage of time, the
investors needed to update the assessment of the mineral
resources.
We are pleased to report that despite the constraints of
COVID-19, the Investors have been able to update the mineral
resource under NI 43-101 a national instrument for the Standards of
Disclosure for Mineral Projects within Canada [1] . A summary of
the mineral resource is being announced today immediately after
this announcement. The mineral resource will be utilised to
generate an optimised pit and mine schedule, which will form part
of the scoping study.
The scoping study continues to advance. Alongside the
preparation of the mine schedule, we will be preparing a condition
and engineering study on the beneficiation plant and a review of
the tailings storage facilities. The Investors have appointed
Wardell Armstrong LLP ("Wardell Armstong") to supervise and prepare
the scoping study. We anticipate, subject to travel restrictions
associated with COVID-19, to have the scoping study completed after
we execute our final settlement with the Bank Creditors.
DEV has also continued to make progress with the Amapá Project.
In particular, DEV is liaising with Agência Nacional de Mineração
("ANM") in Brazil, to start updating its mining licenses, which is
one of the precursors to obtaining the operational permits to begin
mining and processing. Additionally, DEV is investigating
installation of an interim shipment facility for shipment of iron
ore from the stockpiles to compliment the planned shipments from
the public port. If successful, and once shipments have commenced
this will allow DEV to increase the rate of iron ore stockpile
shipments, providing a temporary solution while DEV's private port
is fully refurbished as part of the Amapá Project recommissioning
process.
Non-Executive Chairman Andrew Suckling commented:
"On behalf of our board, I am delighted to report progress with
the legal drafting of the settlement agreement with the Amapá bank
creditors. Bringing Amapá out of administration and into the
recommissioning phase is a complex and detailed process, and I
would like to thank all those involved for their tireless efforts
in making this happen, despite the severe restrictions imposed by
COVID-19."
"The excellent developments on the operational front move us
ever closer to bringing Amapá back to life, and along with the
updated mineral resource statement, we see the value, both in the
project and also on a macro level, the potential for prosperity and
employment in the Amapá region, increase exponentially."
Cadence CEO Kiran Morzaria commented:
"I have said on many occasions that putting together and
executing a transaction to bring Amapá out of administration is a
complex and protracted progress. Nonetheless, we have made
excellent progress in bringing this previously abandoned iron ore
mine back to life and towards completion of the first phase of our
investment. Once made, this investment will mark a historic
milestone for Cadence, and as our Chairman has pointed out, it will
potentially transform the prospects for employment and prosperity
in the region of Amapá. I look forward to updating the market on
further progress."
"I would also like to put on record my sincere thanks to the
board and our team on the ground, who have worked tirelessly to
bring us to this point amidst the unprecedented disruption created
by COVID-19."
- 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.
About Wardell Armstrong
Wardell Armstrong is a full-service technical mining consultancy
with global expertise in the whole mine life cycle. Wardell
Armstrong has professionally qualified and experienced industry
specialists including mineral resources, mining engineering,
metallurgy and mineral processing, financial evaluation, and
environmental and social experts with a proven record of delivering
scoping, Preliminary Economic Assessments and feasibility level
studies.
Wardell Armstrong has been involved in multiple LSE main board
and AIM listings as well as NI 43-101 Technical Reports in line
with the TSX and Competent Person's Reports in line with the ASX.
Wardell Armstrong has acted on behalf of numerous precious and base
metal companies, as well as ferrous exploration and producing
companies in West and Southern Africa, Russia and the CIS, South
America and Greenland.
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.
[1] National Instrument 43-101, Standards of Disclosure for
Mineral Projects, together with Companion Policy 43-101CP and Form
43-101F1, was developed and released by the Canadian Securities
Administrators (CSA) in 2001. National Instruments have legal
status, an important point for companies also listed in the United
States. Each of Canada's 13 provincial/territorial securities
regulators has adopted NI 43-101 and enforces compliance. Stock
exchange listing rules require listed companies to comply with both
listing rules and National Instruments. Market Regulation Services
is a separate regulator in Canada, created when TSX became listed
on its own stock exchange.
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END
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