GCICadence Minerals says first Amapa iron ore shipment is completed and en route
(KDNC ) unveiled that DEV Mineração S.A's ("DEV") has now completed the sale and shipment of the first Iron Ore from the Amapa Iron Ore Project since 2015.
The mineral explorer told investors on Monday that DEV had commenced the shipment of 45,000 tonnes of iron ore stockpiles from the large-scale iron open pit ore mine in Brazil.
DEV, which owns the Amapa Project, said the shipment was approved via a previous court petition and represents the first shipment of Iron Ore from Amapa since its closure in 2015.
The company noted to investors that the loading of the ship was completed on Tuesday and left the port of Santana on Wednesday, en route to the buyer. Meanwhile, operations at the Amapa Iron Ore Project continue as DEV prepares for the next shipment of iron ore.
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 so hard to bring the project back to life and for the potential opportunities and benefits it will bring to the wider Amapa community,” said Cadence’s Chief Executive, Kiran Morzaria on Monday.
Today, he addressed investors again: “This landmark first shipment from Amapa would not have been possible without the support of the local authorities and the state 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."
Cadence said it remains focused on delivering the Amapa project as planned, a move supported by “a robust iron ore market that continues to justify the opportunity.”
Today’s news marks the first iron ore sale and shipment from Amapa since 2015. Both this and the resultant earnings represent “a milestone of huge significance”. Looking ahead, Cadence said it believes that all parties are aligned ‘to complete and execute’ the agreement which will see Cadence Minerals become a 20% shareholder in Amapa.
Shares in Cadence Minerals have increased by over 40% in value since the beginning of 2021. The stock opened 4.88% higher this morning at 21.5p following the announcement.
Reasons to Follow KDNC
In September 2020, DEV, Cadence and Indo Sino Pty ("the Investors") agreed in principle to the settlement terms proposed by the secured bank creditors ("Bank Creditors").
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 Amapa. On completion of the conditions and the release of the Cadence escrow monies, it will become a 20% shareholder in Amapa via its JV company, which will own 99.9% of DEV.
Amapá – 30% (once final agreement with bank creditors has been completed)
Candece plans to rehabilitate Amapá, including commissioning the studies required of bank finance, shipping of the iron ore from the stockpile and the restarting of full operations.
The historic mine plan would mean that Amapá would produce at steady-state production an estimated 4.4 Mt of 65% iron and 0.9 Mt of 62% iron per annum for approximately 14 years.
Cinovec – 16%
Cadence holds around 12% of the equity in European Metals, which, through its subsidiary, Geomet, controls the exploration licences awarded for the Czeach Cinovec Lithium Project.
Cinovec, which is the largest hard rock lithium deposit in Europe, is strategically located to produce lithium for Europe with the goal of contributing to a sustainable supply chain for a world leading centre for electric vehicle development and manufacture in Europe.
Diego Pavia, CEO of EIT InnoEnergy, said he views Cinovec as “critical” to the development of Europe's energy storage industry and in meeting the EU's climate goals of electrification of mobility and large-scale development of renewable energy storage.
Last week, the ongoing nineteen-hole resource drilling programme at the Cinovec Project returned strong drilling results. Cadence’s Chief Executive, Kiran Morzaria told investors that the encouraging results ‘serve to highlight the overall quality of the Cinovec project.’
Yangibana – 30%
Last year, Cadence unveiled ‘outstanding’ rare earth oxide grades in a report which highlighted positive drilling results at the Yangibana rare earth project in Australia, exceeding its expectations for its planned 20,000 metre 2020 exploration drill program.
Cadence, which owns 30% of three mining leases and six exploration licences which form part of the Yangibana Rare Earth Deposit, expects to advance the programme until Q420.
You can register for Cadence’s Investor Presentation which will take place on 7th April 2021 at 5.30pm here.
Follow News & Updates from here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.