Cadence Minerals sees progression at Amapá Project
The AIM-listed group said they are moving closer towards commencing the process of turning Amapá "into a key contributor to the regional economy, with all the employment, health and educational benefits that will bring to this part of Brazil."
The existing precondition includes the sum of $2.5 million currently held in escrow in a judicial trust account, this morning’s statement outlined.
This precondition requires DEV Mineração S.A., which owns 99.9% of the Amapá Project, to reach a settlement agreement with the secured bank creditors.
The settlement is intended to be paid from part of the proceeds from the sale of the iron ore stockpile currently held at Dev's 100% owned port facility in Santana, Amapá.
Cadences said negotiations with its partners were underway with the secured bank creditors as it continues to advance towards a binding agreement.
Shares in Cadence Minerals were trading 1.28% higher at 3.9p during Thursday trading.
On satisfaction of the preconditions and the release of the escrow monies, Cadence will become a shareholder in the Amapá Project, after which, the Government of Amapá will permit Dev to start operations on the asset including the shipment of iron ore from the port.
“The remarkable progress made by Cadence management, Indo Sino and the Governor of Amapá and his team in bringing the Amapá Project back to life continues,” said Andrew Suckling, Non-Executive Chairman of Cadence.
The Amapá Project was previously owned by Anglo American and Cliffs Natural Resources, and consists of a large-scale iron ore mine, beneficiation plant, railway and private port.
In December 2019, Cadence and its partners, alongside the State of Amapá, agreed to reinstate a life of mine railway concession between the Amapá iron ore mine and the port in Santana, State of Amapá, Brazil.
The Concessions allows DEV's 100% owned subsidiary to operate the railway, for the primary purpose of the transport of iron ore over 180 km from the mine to the it's port in Santana.
"Since securing the Railway concessions last December, we have worked tirelessly to settle with Dev's secured bank creditors,” said Kiran Morzaria, CEO of Cadence.
He added, “It is my belief, that assuming that we are able to satisfy this final precondition, Cadence is on the cusp of a company changing event, one that will create a long-lasting store of value for our Company and shareholders, as well as returning some prosperity to the Amapá region.”
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