Cadence Minerals PLC Update on the Amapa Iron Ore Project (5867O)
February 10 2021 - 2:00AM
UK Regulatory
TIDMKDNC
RNS Number : 5867O
Cadence Minerals PLC
10 February 2021
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Update on the Amapa Iron Ore Project
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
provide an update on its investment in the Amapa Iron Ore Project
("Amapa Project"), Brazil.
Settlement of Bank Creditors
In early September 2020, 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"). Detailed discussions and drafting of
the legal documents continue, and we look forward to updating the
market once binding documents are executed.
The execution of a settlement agreement with the Bank Creditors
would represent the satisfaction of Cadence's remaining major
precondition to make its initial 20% investment in the Amapa
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.
Update on Court Petition to Commence Iron Ore Shipments
In April 2020 Commercial Court of São Paulo ("the Court") ruled
that DEV., owner of the Amapa Project could commence the shipment
of the iron ore stockpiles situated at DEV's wholly owned port in
Santana, Amapa, Brazil.
After this and as announced in August and September 2020, the
Bank Creditors filed and had an interim order approved by the State
of São Paulo Upper Court ("Upper Court"). Yesterday the Upper Court
rejected the Bank Creditors appeal ("the Ruling"), and once the
Ruling is effective (up to one week from the date of publication),
the interim order is annulled, and DEV's original petition is
valid. This will allow the recommencement of port operations and
the shipment of iron ore stockpiles.
Details of Approved DEV Court Petition
DEV is permitted to export sufficient iron ore to realise a
US$10 million profit from the Amapa stockpiles at the port (after
the deductions of all logistical, regulatory, shipping and sale
costs).
The first portion of the net revenues shall be used to pay
historic small and employee creditors (US$2.5 million) after which
approximately US$ 6 million of the net revenues will be used to
begin recommissioning studies on the Amapa Project and to start
maintenance and monitoring of the current tailing dam facilities.
The remaining net revenues with be used to provide working capital
for the operations and for a payment against the outstanding amount
due to the Bank Creditors.
A certified translation of the Upper Court ruling is available
here .
Further announcements will be made concerning both the
Settlement Agreement and the outcomes from the Ruling once
available.
- 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.
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