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Cadence Minerals #KDNC formally completes Phase Two to vest its 27% in the Amapa Iron Ore Project
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to report that further to the announcement of February 7th 2022 (link here), all of the required contractual documentation has been completed, and Cadence now has vested its 27% of the Amapa Iron Ore Project (“Amapa Project” or “Amapa”).
This second stage of investment was to acquire a further 7% (US$3.5 million) of Pedra Branca Alliance (“PBA”), the Cadence and IndoSino joint venture company which owns 100% of the equity of DEV Mineraço S.A. (“DEV”). DEV is the owner of the large-scale Amapa Project. This second stage investment was conditional on several preconditions, which have now been satisfied, and consequently Cadence has now vested a further 7%.
Anglo American, a previous owner and 70% shareholder, (with Cliffs owning the remaining 30%), valued the entire Amapa Project at US$ 1.2 billion. In its 2012 Annual Accounts, Anglo American impaired the entire Amapa project value to US$ 660 million.
Cadence CEO, Kiran Morzaria, commented: “I am pleased to report that following the recent oversubscribed fundraising, we have formally completed phase two of our investment into Amapa to acquire 27%. I know our new and longstanding shareholders share our vision for Amapa, and I am pleased to report that the mine rehabilitation plan is progressing on schedule.”
“I look forward to reporting back to you on further operational progress in the coming weeks.”
About the Amapa Project
The Amapa Project commenced operations in December 2007 with the first production of iron ore concentrate product of 712 kt in 2008. In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapa Project in 2008 as part of a larger package of mining assets in Brazil.
Production steadily increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012. During this period, Anglo American reported operating profits from its 70% ownership in the Amapa Project of US$ 120 million (100% US$ 171 million) and US$ 54 million (100% US$ 77 million). Before its sale in 2012, Anglo American valued its 70% stake in the Amapa Project at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million.
Cadence updated the Mineral Resource Estimate on November 2nd 2020, increasing the MRE by 21%. The current MRE contains a Mineral Resource of 176.7 million tonnes grading 39.7% Fe in the Indicated category and Mineral Resource of 8.7Mt at 36.9% in the Inferred category, both reported within an optimised pit shell and using a cut-off grade of 25% Fe.
Details of Ownership and Joint Venture Agreement
Cadence owns 27% of the Amapa Project with our joint venture partner, Indo Sino Pty Ltd (“Indo Sino”) owning the remaining 73%. The ownership of Amapa is via a joint venture company, Pedra Branca Alliance Pte. Ltd. (“JV Co”) which owns 100% of the equity of DEV Mineraço S.A. (“DEV”). Should Indo Sino seek further investors or an investment in the JV Co, the Agreement also provides Cadence with a first right of refusal to increase its stake to 49% in the JV Co.
To acquire its 27% interest Cadence has invested US$6 million over two stages. If Cadence is not able to exercise its right of first refusal under the terms of the Agreement, Indo Sino will have a twelve-month option to buy the shares in JV Co held by Cadence for 1.5 times the price paid by Cadence for such shares.
The Agreement also contains security and default clauses which if triggered causes an upwards adjustment mechanism to allow Cadence to either receive cash from JV Co or receive additional shares in JV Co. In the latter case, Cadence’s shareholding in the JV Co will not go above 49.9%.
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For further information:
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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 identified 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 Cadence Minerals Plc’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 reflect 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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.
Cadence Minerals #KDNC formally completes Phase One to vest its 20% in the Amapa Iron Ore Project
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that further to the announcement of December 29th 2021 (link here), all of the required contractual and regulatory documentation has been completed and filed and Cadence now owns 20% of the Amapa Iron Ore Project.
On the 24th December 2021, the Company alongside Indo Sino entered into a Settlement Agreement with DEV Mineração S.A. (“DEV”) and the Secured Bank Creditors, which to become effective required some additional contractual and regulatory documentation to be completed and filed. As this work has now been completed, Pedra Brance Alliance (“PBA”), the Cadence and IndoSino joint venture company now owns 100% of the equity of DEV, which owns the large-scale Amapa iron ore mine, beneficiation plant, railway and private port (“Amapa Project”, “Amapa”), and consequently Cadence is a 20% owner of PBA.
Anglo American, a previous owner, valued 100 percent in the Amapa Project at US$ 1.2 billion. It impaired the asset in its 2012 Annual Accounts to US$ 660 million for 100 percent.
The second stage of investment is for a further 7% of PBA for a consideration of US$3.5 million. This second stage investment was conditional on several material preconditions, which have now been satisfied. Cadence will now vest its next 7% which will be funded from its recent equity raise. If Cadence does not complete the investment, Indo Sino will have a twelve-month option to buy the shares in PBA held by Cadence for 1.5 (1 ½) times the price paid by Cadence for the shares.
Cadence CEO, Kiran Morzaria, commented: “I am pleased to report that we have formally completed phase one of our investment into Amapa to acquire our initial 20 percent. Furthermore, our board are delighted that the recent fundraise to fund the second investment phase was oversubscribed. It is clear that our vision for Amapa is shared by new and existing shareholders alike given the high level of interest and participation in the fundraising.”
“I look forward to reporting back to you on progress in the coming weeks.”
About the Amapa Project
The Amapa Project commenced operations in December 2007 with the first production of iron ore concentrate product of 712 kt in 2008. In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapa Project in 2008 as part of a larger package of mining assets in Brazil.
Production steadily increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012. During this period, Anglo American reported operating profits from its 70% ownership in the Amapa Project of US$ 120 million (100% US$ 171 million) and US$ 54 million (100% US$ 77 million). Before its sale in 2012, Anglo American valued its 70% stake in the Amapa Project at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million.
Cadence updated the Mineral Resource Estimate on 2 November 2020, increasing the MRE by 21%. The current MRE contains an Mineral Resource of 176.7 million tonnes grading 39.7% Fe in the Indicated category and Mineral Resource of 8.7Mt at 36.9% in the Inferred category, both reported within an optimised pit shell and using a cut-off grade of 25% Fe.
Details of the Joint Venture Agreement
The agreement with our joint venture partner, Indo Sino Pty Ltd, is to invest in and acquire up to 27% of the joint venture company Pedra Branca Alliance Pte. Ltd. (“JV Co”). On completion and registration of the Settlement Agreement the equity of DEV Mineração S.A. (“DEV”) will be transferred to the JV Co, at which point it will own 99.9% of the Amapa Project. Should Indo Sino seek further investors or an investment in the JV Co, the agreement also provides Cadence with a first right of refusal to increase its stake to 49% in the JV Co.
To acquire its 27% interest Cadence will invest US$ 6 million over two stages in JV Co. The first stage is for 20% of the JV Co the consideration for which is US$2.5 million. The second stage of investment is for a further 7% of JV Co for a consideration of US$3.5 million. If Cadence is unable to complete the second stage of the investment or not exercise its right of first refusal under the terms of the Agreement, Indo Sino will have a twelve-month option to buy the shares in JV Co held by Cadence for 1.5 (1 ½) times the price paid by Cadence for such shares.
Cadence’s investment was conditional on several material preconditions, which as of the date of this announcement have been satisfied. On completion of Cadence’s investment (not including the first right of refusal), our joint venture partner Indo Sino will own 73% of JV Co. The Agreement also contains security and default clauses which if triggered causes an upwards adjustment mechanism to allow Cadence to either receive cash from JV Co or receive additional shares in JV Co. In the latter case, Cadence’s shareholding in the JV Co will not go above 49.9%.
On completion of the US$ 6 million investment, Cadence will have the right to appoint two members to a five-member board, with the remaining three comprising of one member jointly appointed by Cadence and Indo Sino and two appointed by Indo Sino.
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For further information:
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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 identified 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 Cadence Minerals Plc’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 reflect 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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.
Cadence Minerals #KDNC – Execution of Settlement Agreement and Vesting of Initial US$2.5m for 20% of the Amapa Iron Ore Project
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that it has entered into a binding settlement agreement (“Settlement Agreement”) with the secured bank creditors of DEV Mineração S.A. (“DEV”), the owner of the Amapa iron ore project in Brazil.
The execution of the Settlement Agreement represents the last major precondition for Cadence to vest its initial US$2.5m for 20% of the large-scale Amapa iron ore mine, beneficiation plant, railway and private port (“Amapa Project”, “Amapa”) . Anglo American, a previous owner had valued its 70% stake in the Amapa Project in [date]at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million).
Highlights:
- Execution of the Settlement Agreement with the Secured Bank Creditors of the Amapa Project allows Cadence’s (20%) and Indo Sino’s (80%) joint venture to secure 100% ownership of the Amapa Project.
- The restructuring of the secured and unsecured creditors achieved by this Settlement Agreement and the Judicial Restructuring Process (“JRP”) has more than halved registered creditors balances.
- Cadence has already commenced its next stage of investment in the Amapa Project to increase its stake to 27%.
- Pre-feasibilty studies are ongoing on the project
Next Steps
The parties to the agreement are now completing and filing the required contractual and regulatory documentation which will crystallise the Cadence and Indo Sino Trade Pte. Ltd. (“Indo Sino”) joint venture company’s 100% ownership of DEV and the Amapa Project.
Cadence has already begun work on the next investment phase to earn an additional 7% of Amapa for US$3.5 million. These funds will be primarily used to progress the pre-feasibility studies on the asset.
Details of the Settlement Agreement
Cadence alongside Indo Sino entered into a Settlement Agreement with DEV and the Secured Bank Creditors on 24 December 2021.
The original credit facility provided to DEV has a principle amount outstanding of US$135 million (“Credit Facility”). The Settlement Agreement settles all of the principle amount plus all interest, default interest, outstanding costs and fees (“Settlement Amount”). The Credit Facility is secured over all of DEV’s equity and assets.
As a result of the Settlement Agreement and the JRP approved in August 2019, the total principle amounts owed to the secured and unsecured creditors in classes I to IV of DEV have been reduced from approximately US$231 million to approximately US$103 million or approximately 45% of the original value.
The Settlement Amount will be paid over two years from the effective date of the Settlement Agreement, and It is to be be satisfied by the net profits from the sale of DEV’s iron ore stockpiles. As agreed in the JRP in August 2019 the unsecured creditors will be paid from DEV’s free cash flow over a period of nine years.
Under the Settlement Agreement, DEV remains the obligor with the Secured Creditors having no recourse of repayment of the Settlement Amount to either Cadence or Indo Sino. The Settlement Agreement will remain secured over all of DEV’s equity and assets.
Cadence CEO, Kiran Morzaria, commented: “When Cadence first announced Heads of Terms for Amapa back in May 2019, we knew that while a tremendous amount of work lay ahead, the investment and terms, if secured would represent our greatest achievement to date as a mining investment company.”
“That we are at this point today is entirely due to the team at Cadence, Indo Sino and DEV sharing a common vision and working together to achieve it. I am proud that together we have overcome some considerable challenges, including the impact of COVID on the Amapa region, to reach this moment.”
“We have already embarked on Phase 2, where Cadence will vest an additional US$3.5m to take our holding to 27%. Given the rate of progessthat I saw on visiting Amapa in October, I have every confidence that the day when our newly recommissioned mine re-commences production will come, at which point the nascent value in the project will be realised for the benefit of all our investors and shareholders.”
Cadence Non-Executive Chairman, Andrew Suckling, commented; “This is indeed a momentous day for Cadence, Indo Sino, DEV, the Government of Amapa, the legal teams and bank committees and administrators who have worked tirelessly, COVID notwithstanding, to finalise the final and perhaps the most lengthy part of the judicial restructuring plan agreed back in 2019.”
“I would also like to put on record my heartfelt thanks to everyone involved in making this happen, and in particular to Kiran and the team for realising what is an absolutely transformational transaction for Cadence and its shareholders.”
“Having achieved what we set out to do, the work really starts in earnest. Bringing Amapa back to life has created a raft of new opportunities for the region and its community, with improved prospects for employment, health and education. The opportunity is simply huge: Amapa was once owned Anglo American, and we fully intend to restore the mine and infrastructure to its former glory, and more besides given that we intend to produce a higher quality product mix. Even now, the value of this transaction is only starting to register with the markets, something I truly believe will change dramatically in the coming years.”
About the Amapa Project
The Amapa Project commenced operations in December 2007 with the first production of iron ore concentrate product of 712 kt in 2008. In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapa Project in 2008 as part of a larger package of mining assets in Brazil.
Production steadily increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012. During this period, Anglo American reported operating profits from its 70% ownership in the Amapa Project of US$ 120 million (100% US$ 171 million) and US$ 54 million (100% US$ 77 million). Before its sale in 2012, Anglo American valued its 70% stake in the Amapa Project at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million.
DEV filed for judicial protection in August 2015 in Brazil, and mining ceased at the Amapa Project. A judicial order in early 2019 offered investors and creditors the opportunity to file a revised JRP. Cadence and Indo Sino filed a conditional JRP, which creditors approved in August 2019. Cadence, Indo Sino and DEV have continued to develop the Amapa Project and satisfy the conditions of the JRP.
Cadence updated the Mineral Resource Estimate on 2 November 2020, increasing the MRE by 21%. The current MRE contains an Mineral Resource of 176.7 million tonnes grading 39.7% Fe in the Indicated category and Mineral Resource of 8.7Mt at 36.9% in the Inferred category, both reported within an optimised pit shell and using a cut-off grade of 25% Fe.
Details of the Joint Venture Agreement
The agreement with our joint venture partner, Indo Sino Pty Ltd, is to invest in and acquire up to a 27% of a joint venture company Pedra Branca Alliance Pte. Ltd. (“JV Co”). On Completion and registration of the Settlement Agreement the equity of DEV Mineração S.A. (“DEV”) will be transferred to the JV Co, at which point it will own 99.9% of the Amapa Project. Should Indo Sino seek further investors or an investment in the JV Co, the agreement also provides Cadence with a first right of refusal to increase its stake to 49% in the JV Co.
To acquire its 27% interest Cadence will invest US$ 6 million over two stages in JV Co. The first stage is for 20% of the JV Co the consideration for which is US$2.5 million. The second stage of investment is for a further 7% of JV Co for a consideration of US$3.5 million. If Cadence is unable to complete the second stage of the investment or not exercise its right of first refusal under the terms of the Agreement, Indo Sino will have a twelve-month option to buy the shares in JV Co held by Cadence for 1.5 (1 ½) times the price paid by Cadence for such shares.
Cadence’s investment was conditional on several material preconditions, which as of the date of this announcement have been satisfied. On completion of Cadence’s investment (not including the first right of refusal), our joint venture partner Indo Sino will own 73% of JV Co. The Agreement also contains security and default clauses which if triggered causes an upwards adjustment mechanism to allow Cadence to either receive cash from JV Co or receive additional shares in JV Co. In the latter case, Cadence’s shareholding in the JV Co will not go above 49.9%.
On completion of the US$ 6 million investment, Cadence will have the right to appoint two members to a five-member board, with the remaining three comprising of one member jointly appointed by Cadence and Indo Sino and two appointed by Indo Sino.
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For further information:
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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 identified 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 Cadence Minerals Plc’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 reflect 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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.
Cadence Minerals #KDNC -Port Concession Update, Amapa Project
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce the approval of the change of control request for the federal port concession owned by DEV Mineraço S.A.’s (“DEV”) (“Port Change of Control”).Alongside the reinstatement of the life of mine railway concession by the State of Amapa in December 2019, details of which can be found here. Both these approvals represent two essential regulatory requirements over the critical infrastructure to operate the integrated Amapa Iron Ore Mine (“Amapa Project”)
DEV, Cadence and Indo Sino Pte. Ltd. (“Indo Sino”) have been liaising with the Agencia Nacional De Transportes Aquaviarios (“ANTAQ”) to approve the Port Change of Control. The federal port concession is one of the licenses required to operate DEV’s privatley owned port in Santana, Amapa. The approved Port Change of Control will occur once Cadence’s and Indo Sino’s joint venture company Pedra Branca Alliance Pte. Ltd. (“JV Co”) is the 99.9% owner of DEV. As part of the Port Change of Control, ANTAQ has agreed to cease the recommended abrogation of the port concession. In addition, DEV has agreed to pay the outstanding fines of approximately US$267,000 to ANTAQ, 30 days after our JV Co takes control of DEV.
DEV ownership will pass to the JV Co once DEV, Cadence and Indo Sino have executed the settlement agreement with the secured bank creditors. Further details of the settlement agreement can be found here .
This approval represents a significant step forward in the licensing process to bring the Amapa project back into production. DEV continues to progress the licensing workstream across the multiple regulatory authorities, and we will update our shareholders as this progresses.
Cadence CEO, Kiran Morzaria, commented: “The Port Concession marks another significant step along the road to bring the Amapa Project back to life. Licensing and permitting often represent a substantial risk in the development of mineral projects, but thanks to the efforts of the team at DEV and its advisors, we have successfully secured two key concessions critical to the operational success of the Amapa project.”
“On my recent Amapa site visit, I was delighted to see the rapid progress on the ground, driven by a highly motivated local management team and staff. I look forward to reporting further progress.”
About the Amapa Project
The Amapa Project commenced operations in December 2007, with the first iron ore concentrate product of 712 kt shipped in 2008. In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapa Project as part of a larger package of mining assets in Brazil.
Cadence updated the Mineral Resource Estimate on 2 November 2020, increasing the MRE by 21%. The current MRE contains a Mineral Resource of 176.7 million tonnes grading 39.7% Fe in the Indicated category and Mineral Resource of 8.7Mt at 36.9% in the Inferred category, both reported within an optimised pit shell and using a cut-off grade of 25% Fe.
Production steadily increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012. During this period, Anglo American reported operating profits from their 70% ownership in the Amapa Project of USD 120 million (100% USD 171 million) and USD 54 million (100% USD 77 million).
Before its sale in 2012, Anglo American valued its 70% stake in Amapa Project at USD 866 million (100% 1.2 billion). It impaired the asset in its 2012 Annual Accounts to USD 462 million (100% USD 660 million.
DEV filed for judicial protection in August 2015 in Brazil, and mining ceased at the Amapa Project. A judicial order in early 2019 offered investors and creditors the opportunity to file a revised JRP. Cadence and Indo Sino filed a conditional JRP, which creditors approved in August 2019, and since that time, Cadence, Indo Sino and DEV have continued to develop the Amapa Project and satisfy the conditions of the JRP.
Details of the Joint Venture Agreement
The agreement with our joint venture partner, Indo Sino, is to invest in and acquire up to 27% of a (JV Co. On completion and registration of the settlement agreement with the bank creditors, the equity of DEV will be transferred to the JV Co, at which point it will own 99.9% of the Amapa Project. Should Indo Sino seek further investors or an investment in the JV Co, the agreement also provides Cadence with a first right of refusal to increase its stake to 49%.
To acquire its 27% interest, Cadence will invest US$ 6 million over two stages in JV Co. The first stage is for 20% of the JV Co’s consideration, which is US$2.5 million. The second stage of investment is for a further 7% of JV Co for a consideration of US$3.5 million. If Cadence is unable to complete the second stage of the investment or not exercise its right of first refusal under the terms of the Agreement, Indo Sino will have a twelve-month option to buy the shares in JV Co held by Cadence for 1.5 (1 ½) times the price paid by Cadence for such shares.
Cadence’s investment is conditional on several material preconditions, including the grant of key operating licences and the release of bank securities over the asset. Upon completing Cadence’s investment (not including the first right of refusal), our joint venture partner Indo Sino will own 73% of JV Co. The Agreement also contains security and default clauses which, if triggered, causes an upwards adjustment mechanism to allow Cadence to either receive cash from JV Co or receive additional shares in JV Co. In the latter case, Cadence’s shareholding in the JV Co will not go above 49.9%.
Upon completing the US$ 6 million investment, Cadence will have the right to appoint two members to a five-member board. The remaining three members will comprise one member jointly appointed by Cadence and Indo Sino and two appointed by Indo Sino.
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For further information:
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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 identified 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 Cadence Minerals Plc’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 reflect 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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.
Cadence Minerals #KDNC – Bank Credit Committee Approval for Amapa Project Settlement Agreement
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that it has received confirmation from the secured bank creditors that they have obtained approval from their credit committees with respect to the proposed terms of the settlement agreement (“Approval”).
Highlights:
- Bank credit committee approval for secured bank creditors assits in paving the way for Cadence to vest initial 20% in the Amapa Iron Ore Project
- On the effective date of the settlement agreement Cadence’s and Indo Sino’s joint venture company will own 99.9% of the Amapa Project
- The Amapa Iron Ore Project consists of an integrated mine, processing plant, railway, and privately owned port. It was previously owned by Anglo American and produced 6.1 million tonnes of iron ore per annum, and was valued at US$ 660 million.
- The current Mineral Resource of the Amapa Project consists of 7 million tonnes grading 39.7% Fe in the Indicated category and 8.7Mt at 36.9% Fe in the Inferred catergory
The Approval is subject to the completion of KYC (know your client) and the finalisation of the documentation reflecting the agreement in principle as announced on the 2 September 2020). The Approval assists in paving the way for Cadence to vest its initial 20% indirect interest in Amapa Iron Project (“The Amapa Project”). The Amapa Project consists of an integrated mine, processing plant, railway, and privately owned port. It was previously owned by Anglo American and produced 6.1 million tonnes of iron ore[1] per annum, and was valued by Anglo American at US$ 660 million[2].
While awaiting credit committee approval, the drafting of the final settlement documents have continued to progress. On the effective date of the Settlement Agreement and under the Judicial Restructuring Plan (“JRP”) Cadence and Indo Sino Trade Pte Ltd (Indo Sino), via their joint venture company, will own 99.9% of DEV Mineração S.A., the owner of the Amapa Project.
Cadence Non-Executive Chairman, Andrew Suckling, commented; “As I have said previously, in my time working with commodity projects around the world, I have rarely if ever seen a lapsed mining project with this sort of potential. Today’s announcement is a landmark for Amapa, both in terms of certainty for DEV employees, the wider Amapa community and for Cadence shareholders. I know how hard the team on the ground there have worked to make this happen, and on behalf of our board I would like to express our thanks and gratitude to DEV, the Government of Amapa, the team of local Government officers and bank committees and administrators for contributing to this momentous step in our history.”
“In its previous life, Amapá’s output contributed significantly to the regional economy. Once again it is set to create new opportunities for the community, and will help to improve prospects in employment, health and education for this region in Brazil as the world emerges from the COVID crisis.”
Cadence CEO, Kiran Morzaria, commented: “After a long and protracted process, I am delighted to be able to announce to you that we have now received Credit Committee Approval for the secured bank creditors to execute the Settlement Agreement. Cadence can then vest its initial 20% and eventually a further 7%, which in practical terms means we have a clear path and process to get Amapárecommissioned, licensed and back into production.”
“On my arrival at Amapá last week, I was deeply impressed by the rapid progress made by the DEV team, with reconstruction of some of the administrative and community infrastructure already well advanced. We look forward to working alongside both DEV and Indo Sino to continue to develop this asset, creating further opportunity and prosperity for the Amapa region, and of course delivering ongoing value for all stakeholders.”
About the Amapa Project
The Amapa Project commenced operations in December 2007 with the first production of iron ore concentrate product of 712 kt in 2008. In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapa Project in 2008 as part of a larger package of mining assets in Brazil.
Cadence updated the Mineral Resource Estimate on 2 November 2020. Increasing the MRE by 21%. The current MRE contains an Mineral Resource 176.7 million tonnes grading 39.7% Fe in the Indicated category and Mineral Resource of 8.7Mt at 36.9% in the Inferred category, both reported within an optimised pit shell and using a cut-off grade of 25% Fe.
Production steadily increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012. During this period, Anglo American reported operating profits from their 70% ownership in the Amapa Project of USD 120 million (100% USD 171 million) and USD 54 million (100% USD 77 million).
Before its sale in 2012, Anglo American valued its 70% stake in Amapa Project at USD 866 million (100% 1.2 billion). It impaired the asset in its 2012 Annual Accounts to USD 462 million (100% USD 660 million.
DEV filed for judicial protection in August 2015 in Brazil, and mining ceased at the Amapa Project. A judicial order in early 2019 offered investors and creditors the opportunity to file a revised JRP. Cadence and Indo Sino filed a conditional JRP, which creditors approved in August 2019. Cadence, Indo Sino and DEV have continued to develop the Amapa Project and satisfy the conditions of the JRP.
Details of the Joint Venture Agreement
The agreement with our joint venture partner, Indo Sino, is to invest in and acquire up to a 27% of a joint venture company Pedra Branca Alliance Pte. Ltd. (“JV Co”). On Completion and registration of the Settlement Agreement the equity of DEV Mineração S.A. (“DEV”) will be transferred to the JV Co, at which point it will own 99.9% of the Amapa Project. Should Indo Sino seek further investors or an investment in the JV Co the agreement also provides Cadence with a first right of refusal to increase its stake to 49% in the JV Co.
To acquire its 27% interest Cadence will invest US$ 6 million over two stages in JV Co. The first stage is for 20% of the JV Co the consideration for which is US$2.5 million. The second stage of investment is for a further 7% of JV Co for a consideration of US$3.5 million. If Cadence is unable to complete the second stage of the investment or not exercise its right of first refusal under the terms of the Agreement, Indo Sino will have a twelve-month option to buy the shares in JV Co held by Cadence for 1.5 (1 ½) times the price paid by Cadence for such shares.
Cadence’s investment is conditional on several material preconditions, which include the grant of key operating licences and the release of bank securities over the asset. On completion of Cadence’s investment (not including the first right of refusal), our joint venture partner Indo Sino will own 73% of JV Co. The Agreement also contains security and default clauses which if triggered causes an upwards adjustment mechanism to allow Cadence to either receive cash from JV Co or receive additional shares in JV Co. In the latter case, Cadence’s shareholding in the JV Co will not go above 49.9%.
On completion of the US$ 6 million investment, Cadence will have the right to appoint two members to a five-member board, with the remaining three comprising of one member jointly appointed by Cadence and Indo Sino and two appointed by Indo Sino.
– Ends –
For further information:
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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 identified 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 Cadence Minerals Plc’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 reflect 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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.
[1] Anglo American, Annual Report 2012, page 89, https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group/PLC/investors/annual-reporting/2013/annual-report2012.pdf
[2] Anglo American, Annual Report 2012, page 183, https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group/PLC/investors/annual-reporting/2013/annual-report2012.pdf
Cadence Minerals #KDNC – Positive Operational Progress at the Amapa Iron Ore Project
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that DEV Mineração S.A (“DEV”) has already delivered positive operational progress in the redevelopment of the Amapa Iron Ore Project (“Amapa”).
Highlights:
- Pre Feasibility Studies (“PFS”) have commenced on the rehabilitation of;
- The beneficiation and processing plant;
- The railway and associated infrastructure between Pedra Branca and DEV’s port at Santana;
- Working alongside Companhia Docas de Santana (“CDSA”), DEV has been able to load two vessels simultaneously with iron ore for the first time.
- The Jack-Up rig at the Santana port is currently being righted and recovered.
- Continued maintenance of the tailings dams, and the start of work required by the ANM (Agência Nacional de Mineração).
As previously announced on the 10 February 2021 and on the 27 July 2021, the Commercial Court of São Paulo (“the Court”) ruled that DEV could export sufficient iron ore to realise a total US$20 million profit from the Amapa stockpiles at the port (US$ 10 million was permitted on each occasion). A portion of these funds is being used to redevelop Amapa, including commissioning studies, capital projects and working capital.
DEV, working alongside Cadence and Indo Sino Pty Ltd (“the Investors), have been progressing the redevelopment of Amapa in several key areas.
Pre-Feasibility Studies
DEV has appointed IDG Engenharia E Consultoria LTDA (“IDG”) to carry out the engineering and conditioning study on the beneficiation and processing plant at the Amapa mine. IDG is a Brazilian ISO approved engineering and consulting company with a broad range of experience in the sector, having worked for Vale, Arcelor Mittal, Kinross, London Mining and Anglo American. They also have specific expertise at the Amapa mine, having consulted on the project previously.
In addition to the engineering and conditioning study, IDG will review the power supply options for the mine and plant, particularly the possibility of connecting to the grid network, enabling the mine and plant to be powered predominantly by lower-cost renewable energy.
DEV has appointed Technicontrol Consultoria E Etrinamento Empresarial Ltda (“Technicontrol”) to carry the PFS work on the railway. Technicontrol has mobilised to Amapa and will begin inspecting some 193km of rail and associated infrastructure, which transverses across the State of Amapa from Pedra Branca to the DEV’s port at Santana. Techincontrol will also review and cost the locomotive and rolling stock requirements for the mine. Technicontrol also has previous experience at the Amapa project.
Both of these studies, once complete, will form part of the PFS. In the coming months, we expect DEV to appoint a consulting and engineering firm to start work on the port studies and a geotechnical investigation of the mine.
Increased Iron Ore loading capacity at CDSA, Amapa
Working with CDSA, DEV has established and tested a process at CDSA’s port in Santana to simultaneously load two (45,000 ton) vessels with iron ore. This operation was carried out early last week when two vessels were loaded at piers 1 and 2 at CDSA with iron ore stockpiled at DEV’s port.
DEV carried out this trial operation by loading ore owned by a third party. The shipments of DEV’s own iron ore, (part of the judicial recovery process approved by the creditors in July 2019) were carried out at a commercial rate. With this increased capacity, DEV will ship its own stockpiles at a faster rate than previously expected.
DEV is scheduled to complete its fourth and last shipment under the court judgment granted earlier this year in August. The four shipments of 58% beneficiated iron ore has netted approximately US$10 million to DEV. After this fourth shipment, DEV will begin the shipments to fulfil the second court judgment announced on 26 July 2021.
Jack-Up Rig
As part of the port reconstruction carried out after the Amapa port collapse in 2013, a jack-up iron ore loading platform was partially installed. In subsequent years, the platform began to list and partially sank due to lack of funds and maintenance. DEV has however been committed to securing and recovering the jack-up platform, and to that end engaged a marine engineering firm that began work in July to refloat the platform.
Tailings Dams
As previously announced, DEV began tailing dam maintenance earlier in the year, engaging a civil engineer and two geotechnical consulting firms to advance the work programme to include monitoring, geotechnical stability testing and compliance with statutory reporting. The end goal is to ensure that the current dams will be suitable for future operations amid Brazil’s more stringent regulatory environment.
Cadence CEO Kiran Morzaria commented, “On behalf of the Cadence Board, I am pleased to report solid operational progress at Amapa in regard to recommissioning work at the mine, port and railway. The ongoing sales from our iron ore stockpiles are providing sufficient funding to complete the PFS, along with some of the work required to bring the complete operation back to life.”
“We remain enthused by the opportunities and possibilities that a fully recommissioned Amapa mine will deliver, and I am delighted to see local contractors and companies already engaged with us to make it happen .”
“I look forward to reporting further progress to you in the coming weeks and months”
Cadence Interest in the Amapa Iron Project
As previously announced, 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 Bank Creditors. The principal commercial terms agreed in 2020 have not varied materially, and at the time of writing, the final settlement is currently with the Bank Creditors for comment and/or approval.
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.
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For further information:
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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 identified 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 funding sources), competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions 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 in this announcement are based on what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
Cadence Minerals #KDNC – Approval of the Shipment of a further net US$10 million of Iron Ore from the Amapa Project.
Cadence Minerals AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that DEV Mineração S.A (“DEV”) has been permitted to export a further US$10 million (after the deductions of all logistical, regulatory, shipping and sale costs) of iron ore from its stockpiles situated at its port in Santana, Amapa, Brazil (“Second Permission”). This authority is in addition to the first permission granted to DEV on 10 February 2021, in which it was permitted to ship an initial US$10 million, net of costs, of iron ore (“First Permission”).
In August, DEV is scheduled to complete its fourth and last shipment under the First Permission; the four shipments of 58% beneficiated iron ore has netted approximately US$10 million to DEV. On completion, DEV will begin the shipments to fulfil the Second Permission.
The net profit from the sale of the iron ore will be used primarily for commissioning studies, capital projects and working capital. As per the First Permission, 10% of the net profits will be reserved for payment against the amounts owed to the secured bank lenders (“Bank Creditors”).
A separate update as to the operational progress will be published soon.
Cadence Interest in the Amapa Iron Project
As previously announced, 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 Bank Creditors. The principal commercial terms agreed in 2020 have not varied materially, and at the time of writing, the final settlement is currently with the Bank Creditors for comment and/or approval.
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.
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For further information:
|
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 identified 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 funding sources), competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions 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 in this announcement are based on what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
Cadence Minerals #KDNC – Second Iron Ore Shipment & Operational Update from the Amapa Project
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an operational update on the Amapa, Iron Ore Project, Brazil (“Amapa Project”).
Highlights:
- Shipping continues at pace – DEV Mineração S.A. (“DEV”) has shipped and sold the second batch of iron ore from the stockpiles.
- The loading of the 48,670 wet tonnes of iron ore sinter fines (approx. 58% Fe) at Companhia Docas de Santana (“CDSA”) was carried out in record time.
- R$7.5 million deposited into the judicial account, to be utilised to pay ex-employee and small creditors
- The remainder of the profit from the first shipment is being utilised as per the Approved Court Petition
- Key personnel have been engaged, including the head of shipping operations and the previous general manager of mine operations.
- Re-instatement of operating licenses is progressing with a focus on DEV’s private port concession.
Shipping
DEV has shipped and sold the second load of the iron ore stockpiles from Santana, Amapa, Brazil. The loading of the 48,670 of the iron ore sinter fines (approx. 58% Fe) at CDSA was completed in record time (60 hours), which bodes well for DEV’s plan to increase the frequency of shipping from CDSA over the coming months.
DEV worked with Indo Sino Pty Ltd (“Indo Sino”) and Cadence to carry out a competitive bid process for the cargo. The buyer is one of the world’s largest globally diversified natural resource companies and a major producer and marketer of commodities.
This shipment was approved via a court petition (“Approved Court Petition”), details of which can be found here, allowing DEV to export sufficient iron ore to realise a US$10 million profit.
Part Payment of Former Employees and Small Creditors
As part of the Approved Court Petition, DEV undertook that it would pay certain outstanding claims from former employees and small creditors from the net profit of the sale of the iron ore stockpile.
In this regard, DEV has transferred R$7.5 million to the judicial deposit account, representing some three-quarters of the amounts owed. KPMG Brasil will manage the payments to these creditors. Once fully paid, this will mark the completion of a crucial step in the Judicial Restructuring Plan (“JRP”) approved by the creditors on 29 August 2021.
The remainder of the profit from the first shipment of Iron Ore ( Sinter Fines 58% Fe) is being utilised as per the Approved Petition.
Operations
Operations have continued to progress in regard to the recommissioning of the Amapa Project,
Key personnel have been engaged. A new head of shipping operations is now responsible for the efficient and safe movement of the iron ore shipments.
In addition, DEV has engaged a former general manager of mine operations. With over 27 years of operational and managerial experience at various Brazilian iron ore and copper mines, including the Amapa Project, the manager will be responsible for day to day operations at the mine, and will oversee the recommissioning of the asset.
As the process for reinstatement of critical concessions and operational licenses progress, our current focus is on the reinstatement of DEV’s private port concession. In this regard, DEV, IndoSino and Cadence have engaged with the relevant authorities, highlighting the macroeconomics and the local and regional importance of the Amapa Project. To date, feedback has been positive, and we will update the market once further progress has been made.
Essential maintenance and security of the mine tailings dam continues, with cost-effective and incremental improvements ongoing. Having now engaged the previous general manager of mining, we expect this process to accelerate, along with the commencement of the plant engineering and conditioning study, which is an outstanding part of the scoping study on the Amapa Project.
As part of providing reliable iron ore stockpile data, SGS Brasil has been engaged to carry out a re-assay of DEV’s iron ore stockpiles. This, alongside a more accurate volumetric survey, will allow DEV to confidently market the material, and resolve any variations in historic assays results.
Cadence CEO Kiran Morzaria commented, “We are pleased and proud that the sale and shipment of the second batch of iron ore from Amapa has completed so quickly. That the customer is once again one of the world’s largest globally diversified natural resource companies is a clear signal that Amapa is very much back in business, with keen demand for its product.”
“On behalf of the Cadence board, our gratitude and appreciation goes out once again to the men and women working to bring Amapa back to life, and who have worked tirelessly to complete this second shipment in a safe and efficient manner. “
Although in line with the Approved Petition, it is nonetheless immensely gratifying to see a substantial amount of Amapa’s outstanding debts to former employees and creditors settled with the shipment sale profits, marking a small step along the road to improving prospects for employment and economic activity in the region.”
Cadence Interest in Amapa Project
In early September 2020, we announced that DEV, Indo Sino and Cadence had agreed in principle to the settlement terms proposed by the secured bank creditors (“Bank Creditors”). We understand that two of the three Bank Creditors are awaiting credit committee approval while one has already achieved this.
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. Upon completing the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapa Project via our joint venture company, which will own 99.9% of DEV.
After this, Cadence will invest a further US$3.5 million to increase its stake to 27% in the Amapa project. Cadence’s investment is conditional on several material pre-conditions, which include the grant of key operating licences.
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For further information:
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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 identified 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 reflect 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.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
Cadence Minerals #KDNC – First Amapa Iron Ore Shipment Completed and En Route
Further to the announcement made on the 29 March, Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that DEV Mineração S.A’s (“DEV”) has completed the sale and shipment of the first Iron Ore from the Amapa Iron Ore Project since 2015.
Loading of the ship was completed on the 30 March and she left the port of Santana yesterday, en route to the buyer. Operations continue at DEV to prepare for the next shipment, which, with all things being equal, we expect to be in four to five weeks.
Other Updates
Cadence is also pleased to announce that it has made the final repayment due under the convertible loans announced in 2019. There are not further convertible loan notes outstanding.
Webinar
Cadence will be presenting an investor webinar hosted by Vox Markets.The webinar will take place on 7th April 2021 at 5.30pm. Please register your interest and submit questions at: https://voxmarkets.brand.live/c/vox-markets-webinar-wednesday-april-7th
Cadence CEO Kiran Morzaria commented, “We are delighted to announce that the first Amapa iron ore shipment has completed and is now en route.”
“On behalf of the Cadence board, I would like to put on record our gratitude and appreciation of the tireless efforts of DEV, IndoSino and the port contractors to ensure the shipment completed on time and on schedule. This landmark first shipment from Amapa would not have been possible without the unwavering support of the local authorities and the state & federal agencies who have not only assisted us in completing our first shipment but have also made a material difference in our efforts to create new employment and economic activity in the region.”
“I look forward to updating you further in the upcoming webinar after Easter.”
Cadence Interest In the Amapa Iron Project
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.
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.
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For further information:
|
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 identified 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 reflect 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
Cadence Minerals #KDNC – Inaugural Shipment of Iron Ore from the Amapa Iron Ore Project, Brazil
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that DEV Mineração S.A’s (“DEV”) has commenced the shipment of the iron ore stockpiles from Santana, Amapa, Brazil. This shipment was approved via a court petition (details of which can be found here) and represents the first shipment of Iron Ore from this asset since its closure in 2015.
Highlights:
- The first shipment of 45,000 tonnes of iron ore from the Amapa Iron Ore Project has commenced
- The vessel is currently loading and is due to sail this week
- Iron Ore 62% Fe, CFR China at US$167.05 per tonne (26/02/2021)
- Approximately 1.39Mt of iron ore currently stockpiled as DEV’s wholly-owned port
- Operations are continuing in Brazil to prepare for the next shipment
On 19 February 2021, the State of São Paulo Upper Court published the ruling allowing DEV to export sufficient iron ore to realise a US$10 million profit. Soon after, operations restarted moving material from DEV’s wholly-owned port to Docas De Santana some 2 km away.
DEV worked with Indo Sino Pty Ltd (“Indo Sino”) and Cadence to start operations, charter a vessel and carry out a competitive bid process for the cargo. The buyer is one of the world’s largest globally diversified natural resource companies and a major producer and marketer of commodities.
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 Iron Ore Project. The remaining net revenues with be used to provide working capital for the operations and payment against the outstanding amount due to the Bank Creditors.
Operations continue at the port in preparation for the next shipment, and at the mine, security has been put in place and tailing dam maintenance has commenced.
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. Positive steps have been made, and we believe all parties are aligned to complete and execute this agreement.
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.
Further announcements will be made concerning the Settlement once available.
Cadence Chairman Andrew Suckling commented; “I would once again like to put on record my sincere thanks and gratitude for the tireless efforts by Cadence management, IndoSino and DEV and advisors to bring the project to fruition. This inaugural iron ore shipment brings Amapá back to life, and in time we expect the mine and infrastructure to play a key role in helping to regenerate the regional economy, with all the employment, health and educational benefits that will bring to this part of Brazil.”
“Despite the severe disruption created by COVID-19, management has remained focused on delivering the Amapa project as planned, all the while supported by a robust iron ore market that continues to justify the opportunity. Throughout, our primary concern has been to ensure the safety and wellbeing of all our staff, and we continue to maximise our efforts to ensure that employees, shareholders, contractors and their families continue to remain safe and secure through these challenging times.”
Cadence CEO Kiran Morzaria commented: “The first iron ore shipment from Amapa since 2015 and the resultant earnings represent a milestone of huge significance, both for our board and team who have worked tirelessly on bringing the project back to life and for the potential opportunities and benefits it will bring to the wider Amapa community.”
“As regards the secured bank creditors, we believe all parties are aligned to complete and execute the agreement which will see Cadence become a 20% shareholder in Amapa. I look forward to updating you on further developments as we move to complete the final stage of phase 1 of our Amapa investment plan.”
– Ends –
For further information:
|
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 identified 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 reflect 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.