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MetalNRG #MNRG – GoldRidge Gold Project Update
MetalNRG plc, (LON:MNRG), the natural resources and energy investment company, provides an update on progress made at its 100% owned GoldRidge Gold Project in Arizona following our announcement made on 19th May 2021 in which it explained that an initial programme of data compilation was essential to recover and assimilate the substantial number of maps and quantity of digital and paper files into a useable archive. This work has now been completed within budget and the timeframes set.
Following the completion of the Company’s Competent Persons Report updated by SRK USA, in May 2021, MetalNRG set out to further develop the GoldRidge property. The CPR pointed to larger than previously known opportunities at the project and specifically SRK believe that:
– Turn-key prospects to develop vein-hosted mineral resources from drilling are available
– That the project offers great opportunities to discover satellite gold deposits worth pursuing as the exploration is low cost
In June 2021, the Company’s Geologist, Bart Stryhas, Senior Geologist, PhD CPG, based in the USA and leading the project, set out to:
– Review all claims and ensure all property claims were up to date
– Consolidate all available historical information on the property into a detailed data room
– From the consolidation of the information, the Company developed detailed topography covering all claim areas in UTM NAD 83 datum
– Map underground geometries for all development and mining stopes at Gold Prince &
Dives Mines
– Integrate 446 historic Drillholes with Au and Ag analyses totaling 11km
– Locate 170 surface rock samples with Au analysis
– Compile 280 soil geochemical assays with multi elemental analysis
– Digitize all roads and trails about and internal to the claim area
– Locate claim corners
– Register several geologic maps at various scales
– A total 5,109 files have been reviewed and used as feed into our development approach
The work completed gives us a solid understanding of the history of the project, the potential it could offer and a clear pathway to add substantial value to the project. It has identified a number of areas that have shown, via our field work, that mineralisation is present but has never been explored in any detail.
Our findings have been summarised in a new GoldRidge Project presentation which can be viewed on our web site www.metalnrg.com.
Rolf Gerritsen, CEO MetalNRG Plc, commented “The GoldRidge Project appears to offer a considerable larger opportunity than previously anticipated and the work completed to date by Bart confirms that the area has been under explored and under developed with solid indicators of mineralisation throughout the property. Between now and November we will be on site and we will further validate our assumptions via detailed field work. We have the waste dumps and the remaining pillars that are available to us but going after them without a plan to capture the additional opportunities would not be right to ensure we maximise returns for our shareholders.”
For the purposes of UK MAR, the person responsible for arranging for the release of this announcement on behalf of the Company is Rolf Gerritsen, Chief Executive Officer.
Christian Schaffalitzky, FIMMM, PGeo, CEng, is a director of the Company. He has reviewed the update and consents to the inclusion of the exploration information in the form and context in which it appears here. He is a Competent Person for the purposes of the reporting of these results.
END
Contact details:
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MetalNRG PLC Rolf Gerritsen |
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Corporate Adviser |
+44 (0) 20 7469 0930 |
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Corporate Broker |
+44 (0) 1483 413500 |
Tertiary Minerals #TYM – Appointment of Non-Executive Director
Tertiary Minerals plc is pleased to announce that it has appointed Dr Mike Armitage as an independent non-executive director of the Company effective immediately following the Annual General Meeting to be held on 28th January 2021.
Dr Armitage is currently employed by SRK Consulting (UK) Ltd, part of the SRK Group, a leading global mining consultancy. He has over 35 years’ experience in the mining industry and at SRK has been responsible for managing feasibility studies and stock exchange Competent Persons Reports on behalf of mining and exploration companies, as well as audits and due diligence studies and independent valuations of exploration and mining assets on behalf of investment institutions or in support of mergers and acquisitions. During his time with SRK, Dr Armitage has been Managing Director and Chairman of the SRK’s UK practice, Director of several of SRK’s individual company practices, including SRK’s Exploration Services, and SRK Group Chairman.
He is currently Chair of the Applied Earth Science Division of the Institute of Materials, Minerals & Mining, Chair of the Geological Society Business Forum and Honorary Chair of the Critical Minerals Association.
Dr Armitage will also be appointed as Chairman of the Company’s Remuneration Committee and to the Company’s Audit and Nomination Committees. He will be offered for re-election at the AGM to be held in 2022 in accordance with the Company’s Articles.
Commenting today, Executive Chairman Patrick Cheetham said: “We have been looking for a high-calibre candidate for some time now and I am delighted that Mike has agreed to join us. His extensive experience and global contacts in the mining industry will be a valuable resource for the Company as we seek to advance our expanding portfolio of mineral projects.”
The following information regarding the appointment of Dr Michael Graham Armitage, aged 58, is disclosed under Schedule 2(g) of the AIM Rules for Companies:
| Current directorships and/or partnerships: | Former directorships and/or partnerships (within the last five years):
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| West Wales Gold Limited
SRK Consulting (Russia) Limited SRK Consulting (Russia) Nominee Company Limited SRK Exploration Services Limited
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Steffen, Robertson and Kirsten (Global) Trust Company Limited
SRK Consulting (UK) Trust Company Limited SRK Consulting (Europe) Limited SRK Consulting (Global) Limited SRK Consulting (Australasia) Pty Ltd |
Dr Armitage holds no shares in the Company and holds no warrants or options over the Company’s shares.
There are no further disclosures required under Schedule 2(g) of the AIM Rules for Companies.
For more information please contact:
| Tertiary Minerals plc: | ||
| Patrick Cheetham, Executive Chairman | +44 (0) 1625 838 679 | |
| SP Angel Corporate Finance LLP
Nominated Adviser and Broker |
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| Richard Morrison | +44 (0) 203 470 0470 | |
| Caroline Rowe | ||
| Peterhouse Capital Limited
Joint Broker |
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| Lucy Williams | + 44 (0) 207 469 0930 | |
| Duncan Vasey | ||
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Note to Editors:
Tertiary Minerals plc (ticker symbol ‘TYM’) is an AIM-traded mineral exploration and development company building a multi-commodity project portfolio.
Cadence Minerals #KDNC – Binding Investment to Acquire Interest in former Anglo American Iron Ore Mine, Amapá, NE Brazil
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that further to its announcement on the 21 May 2019 it has entered into a binding investment agreement (“the Agreement”) with Indo Sino Pte. Ltd. (“Indo Sino”) to invest in and acquire up to a 27% interest in the former Anglo American plc (“Anglo American”) and Cliffs Natural Resources (“Cliffs”) Amapá iron ore mine, beneficiation plant, railway and private port (“Amapá Project”) owned by DEV Mineração S.A. (“Amapá”).
Further information on the project is available in the Company’s announcement of the heads of terms in relation to the investment on 21 May 2019 and the terms of the binding investment agreement are consistent with the heads of terms.
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/KDNC/14082106.html
Details of the Agreement with Indo Sino
The Agreement with 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 approval of the Judicial Review Process (“JRP”) and the transfer of equity of Amapá to the JV Co the JV Co will own 99.9% of the Amapá 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$3.5 million. If Cadence is unable to complete the second stage of the investment or not exercise its right of first refusal under the terms of the Agreement, Indo Sino will have a twelve-month option to buy the shares in JV Co held by Cadence for 1.5 (1 ½) times the price paid by Cadence for such shares.
Cadence’s investment is conditional on several material pre-conditions, which include the grant of key operating licences and the release of bank securities over the asset. On completion of Cadence’s investment (not including the first right of refusal) our joint venture partner Indo Sino will own 73% of JV Co. The Agreement also contains security and default clauses which if triggered causes an upwards adjustment mechanism to allow Cadence to either receive cash from JV Co or receive additional shares in JV Co. In the latter case Cadence’s shareholding in the JV Co will not go above 49.9%.
On completion of the US$ 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 –
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
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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.
Cadence Minerals #KDNC announces Heads of Terms to Acquire Interest in former Anglo American Iron Ore Mine, Amapá, NE Brazil
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that it has entered into a non-binding Heads of Terms (“HOT”) with IndoSino Pte Ltd. (“IndoSino”) to invest in and acquire up to a 27% interest in the former Anglo American plc (“Anglo American”) and Cliffs Natural Resources (“Cliffs”) Amapá iron ore mine, beneficiation plant, railway and private port (“Amapá Project”) owned by DEV Mineração S.A. (“Amapá”).
The Amapá Project is a large-scale iron open pit ore mine with associated rail, port and beneficiation facilities and commenced operations in December 2007.Production increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012 respectively.
The HOT stipulates that Cadence, upon entering into a binding investment agreement, will have the right to acquire 27% of the Amapá Project by investing a total of US$6 million over two stages into a joint venture company, Pedra Branca Alliance Pte Ltd. (“PBA”). Cadence’s investment is conditional, amongst other matters, on the approval of a judicial restructuring plan (“JRP”) submitted by Cadence and IndoSino to the Sao Paulo Commercial Court in Brazil, the transfer of 99.9% of the issued share capital of Amapá to PBA and Cadence raising the required finance. Cadence is in discussions with potential strategic investors to fund all or part of this investment via equity.
Cadence is currently finalising the terms of the binding investment agreement, which is expected to be entered into shortly.
Highlights
- The Amapá Project is a large-scale open pit iron ore mine with associated rail, port and beneficiation facilities and is located in the Amapá state, north-east, Brazil.
- Prior to its sale in 2012 Anglo American valued its 70% stake in the Amapá Project at US$866 million (100% 1.2 billion) and after impairment valued it at US $462m in its 2012 Annual Report ( 100% US $600m) [1]
- During its operation the mine generated an annual operating profit of up to U$171 million (100%)[2].
- The total historic mineral resource contains an estimated 348 million tonnes (“Mt”) of ore @ 38.9% iron content (“Fe”)[3]
- The ore is beneficiated to 65% Fe Pellet Feed and 62% Fe Spiral Concentrate.
- Based on available historic mine plans and an independent consultant review it is expected that at full production the Amapá Project has a mine life of 14 years and at full capacity is targeting to produce up to 5.3 Mt of Iron Ore per annum.
- Initial revenue from the project is anticpated to start in Q4 2019 from the sale of the iron ore stockpile currently located at the Port of Santana , Brazil.
- Potential for the mine and existing infrastructure to be brought to market swiftly with mining and processing anticipated to restart in 2021 subject to the grant of the necessary permits, regulatory consents and project financing.
- Cadence is able to acquire a significant share of the mine (up to 27% of the issued share capital of PBA) for a staged equity investment of US$ 6 million and has a first right of refusal to acquire up to 49%.
- 65% Iron Ore (CFR) North China have increased from US$95.95 per dry metric tonne (“$/dmt”) to US$111.90 / dmt since early September 2018 to the middle of May 2019[4]
Cadence Minerals CEO Kiran Morzaria commented:
“It is rare in our industry to be presented with an opportunity to put forward a relatively modest investment to participate in such a project that we believe provides us with a potentially transformative asset for our Company. The Amapá Project gives Cadence the potential for an exceptional ROI in the run up to full production and an opportunity to become a significant shareholder in a mid tier iron ore producer. “
“Our participation in the project has been ongoing for some 9 months, involving an extensive and comprehensive due diligence process. Through this we have gained a thorough understanding of the judicial restructuring process, and along with IndoSino, we have submitted the Judicial Restructuring Plan to the courts in Brazil”
“Given the nature of the asset the capital costs are estimated to be substantially lower than would be normally associated with developing a similar sized project from scratch. As the project restarts operations, it is hoped it can move rapidly forward to revenue generation by Q4 2019, and to see the mine fully operational in 2021.”
“On behalf of myself and the Cadence team, we are wholly enthused by the opportunity the Amapá Project presents, and we are excited by the prospect of restarting mining operations.”
The Project
As part of its due diligence and assessment Cadence has carried out multiple site visits and commissioned SRK Consulting to provide it with a high-level review of the Amapá Project. This review was based on a site visit, historical analysis and the review of technical independent engineers reports published 2013 and 2015. It should be noted that this review provides a basis for a preliminary assessment of the project and its potential but further, more detailed reviews and analysis would be required to provide a Pre-Feasibility Study level report. This would include amongst other things, providing a current Mineral Resource Estimate and/or Ore Reserves, updated capital and operating costs and an independent assessment of key economic drivers and returns.
The Amapá Project consists of an open pit iron ore mine, railway and port facility and is located in Amapá State, northeast Brazil. The Amapá mine site, forming part of the Amapá Project, is located near the towns of Pedra Branca do Amapári, and Serra do Navio, approximately 200km northwest of Macapa.
The Amapá Project has minerals rights over 5,556 hectares comprising three separate mining licenses and an exploration permit. The historic Mineral Resource contained within the licenses is of some 348 Mt at 38.9% Fe. A summary of the historic Mineral Resources from 2012 is tabulated below.
| Classification | Tonnes (Mt) | Fe(%) |
| Measured | 62.9 | 39.7% |
| Indicated | 233.4 | 39.2% |
| Measured and Indicated | 296.3 | 39.2% |
| Inferred | 52.3 | 37.0% |
| Total | 348.6 | 38.9% |
Table 1 – 100 per cent. Amapá project historic resource table at 25% Fe(T) cut-off for December 2012 (Source Anglo American.)
It should be noted that the Minerals Resource was assessed by Anglo American as at the 31 December 2012 (Annual Report 2012, Anglo American, p.198) and was prepared under the Australasian Code for Reporting of Exploration Resources and Ore Reserves 2004 edition (“JORC”). Given the passage of time this assessment is not valid under JORC. Further work and assessment would need to be undertaken to assess and update any current Mineral Resource or Ore Reserve.
Based on available historic mine plans and the independent engineers review the JV partners current mine plan envisages a mine life of 14 years. Management estimate prior to the start of mining the Amapá Project will also ship the iron ore stockpiles held at the dock which is estimated to start in Q4 of this year and continue for two years . The mine is open pit and has a planned strip ratio of 0.9:1.
The beneficiation plant consists of a crushing circuit followed by screening, flotation, thickener and filtering to produce 65% Fe Pellet Feed in addition the plant produces a 62% Fe Spiral Concentrate. The current mine plan would mean that the Amapá Project would produce at steady state production an estimated 4.4 Mt of 65% Fe and 0.9 Mt of 62% Fe per annum.
The intention is that these products would then be transported from the mine to the railhead by on-highway trucks along an unpaved road, a road haul distance of 13km. From the railhead, the products would then be transported 180km by rail to the port facility at Santana. The products would then be stockpiled at the port facility and mechanically loaded onto “Handymax” vessels which navigate the Amazon River out to sea and then transported onto larger “Capesize” vessels before the products are sold to the market. The products produced by the Amapá Project are well known in the market, especially in China where most of the historic production was sold.
Operational Plan
On approval of the JRP by the creditors of the Amapá Project and the satisfaction of the conditions precedent, which includes the grant of operating licences and regulatory consents, shipping of the Iron Ore at stockpile will commence as soon as possible. Based on our current understandings of the JRP timings, it is anticipated this is targeted to commence in Q4 2019.
Cadence’s investment will provide the initial working capital and will be utilised to complete a detailed recommissioning study and pay some of the historic creditors. The recommissioning study will provide definitive operating and capital expenditure numbers and a timeline for recommissioning. The remainder of the required capital expenditure and working capital is expected to be raised predominantly from project debt. Full recommissioning is estimated to take 12-18 months with mining production targeted to start in 2021.
Details of the Heads of Terms with IndoSino
Cadence has agreed HOT with IndoSino to acquire up to 27% of the joint venture company that on approval of the JRP and transfer of equity to PBA will own 99.9% of the Amapá Project. Should IndoSino seek further investors or investment in PBA the agreement also provides Cadence with a first right of refusal to increase its stake to 49% in PBA. To acquire its 27% interest Cadence will invest US$ 6 million over two stages in the joint venture company, Pedra Branca Alliance Pty Ltd. (“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.
Cadence’s investment is conditional on several material pre-conditions, which include the grant of key operating licences, and On completion of Cadence’s investment (not including the first right of refusal) our joint venture partner IndoSino will own 73% of JV Co by assigning its registered creditor rights and pledge over three iron ore stockpiles it holds in the Amapá Project to PBA. There are conditions precedent to Cadence’s investment which mirror the conditions set out in the JRP this ensures that its investment risk is substantially mitigated.
Details of the JRP
In advance of entering into the investment agreement, Cadence has agreed that Amapa may make its original application to the court to commence the approval of the JRP. Notwithstanding the JRP naming Cadence within its application, Cadence is not directly a party to the JRP but is in regular consultation with Amapa.
Cadence and IndoSino have submitted a JRP to the Commercial Court of São Paulo. This plan sets out how and under what terms Cadence and IndoSino will invest via PBA in the Amapá Project and if approved by creditors will mean that PBA will own 99.9% of the Amapá Project. Given that there were no other valid plans submitted and the JRP was similar to a previously approved plan, the Directors believe that the JRP will be approved by the creditors.
The JRP is part of a regulated process under the laws of Brazil, in which the company under judicial review and investors can submit a recovery plan which will allow the company under judicial review, in this case the Amapá, to trade under a protected status while it recovers from its financial difficulties. The JRP provides a defined schedule of the payment of historic creditors. The JRP schedule contemplates the majority of the historic liabilities will be paid from free cash flow in years 7 to year 17 of operations which represents a discounted NPV10 debt value of approximately US$106 million.
The plan requires approval by a general meeting of the creditors and once approved the company can continue to operate and trade under the protection of the JRP. At this point in time this meeting is expected to occur by the end of June 2019.
History of the Amapá Project
The Amapá Project commenced operations in December 2007 with first production of iron ore concentrate product of 712 kt in 2008.
In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapá 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 respectively. During this period Anglo American report operating profits from their 70% ownership in the Amapá Project of US$120 million (100% US$171 million) and US$54 million (100% US$ 77 million)[5]
Prior to its sale in 2012 Anglo American valued it’s 70% stake in Amapá Project at US$866 million (100% 1.2 billion) it impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million[6]
In March 2013, before the acquisition was completed the port facility suffered a ground failure which interrupted production and mining subsequently ceased in March 2014. Anglo American completed the sale in November 2013[7]. During 2014, reconstruction work commenced at the port with some iron ore concentrate product being shipped during Dec 2013 and into 2014, via an interim barging solution The Amapá Project borrowed US$135 million senior debt from a banking group led by Intesa São Paulo and rebuilt 70% of the port.
Amapá filed for judicial protection in August 2015 in Brazil and mining ceased at the Amapá Project. In April 2017, a group agreed to invest via a creditor approved judicial review plan. However, the transaction was never completed, and Amapá was placed under judicial protection once again. A judicial order offered investors and creditors the opportunity to file a revised JRP. Cadence and IndoSino have taken the opportunity to file a revised JRP, as described above.