Cadence Minerals updates on Amapa Iron Ore project

Cadence Minerals plc (LON:KDNC) has provide an update on its investment in the Amapa Iron Ore Project, Brazil.

Settlement of Bank Creditors

In early September 2020, we announced that DEV Mineração S.A’s (“DEV”), Cadence and Indo Sino Pty Ltd agreed in principle to the settlement terms proposed by the secured bank creditors. Detailed discussions and drafting of the legal documents continue, and we look forward to updating the market once binding documents are executed.

The execution of a settlement agreement with the Bank Creditors would represent the satisfaction of Cadence’s remaining major precondition to make its initial 20% investment in the Amapa Project. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapá Project via our joint venture company, which will own 99.9% of DEV.

Update on Court Petition to Commence Iron Ore Shipments

In April 2020 Commercial Court of São Paulo ruled that DEV., owner of the Amapa Project could commence the shipment of the iron ore stockpiles situated at DEV’s wholly owned port in Santana, Amapa, Brazil.

After this and as announced in August and September 2020, the Bank Creditors filed and had an interim order approved by the State of São Paulo Upper Court.  Yesterday the Upper Court rejected the Bank Creditors appeal, and once the Ruling is effective (up to one week from the date of publication), the interim order is annulled, and DEV’s original petition is valid. This will allow the recommencement of port operations and the shipment of iron ore stockpiles.

Details of Approved DEV Court Petition

DEV is permitted to export sufficient iron ore to realise a US$10 million profit from the Amapa stockpiles at the port (after the deductions of all logistical, regulatory, shipping and sale costs).

The first portion of the net revenues shall be used to pay historic small and employee creditors (~US$2.5 million) after which approximately US$ 6 million of the net revenues will be used to begin recommissioning studies on the Amapa Project and to start maintenance and monitoring of the current tailing dam facilities. The remaining net revenues with be used to provide working capital for the operations and for a payment against the outstanding amount due to the Bank Creditors.

Further announcements will be made concerning both the Settlement Agreement and the outcomes from the Ruling once available.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Cadence Minerals

More articles like this

Cadence Minerals

Iron ore to get to record $200

A surge in steel consumption as the world emerges from its pandemic-induced slump is set to drive iron ore to an unprecedented high as the biggest miners struggle to keep up with the frenzied pace of demand. Expectations

Cadence Minerals

Iron ore futures hit record highs

Chinese steel futures hit all-time highs on Monday, underpinned by robust demand and concerns over production curbs, while benchmark iron ore prices hit record highs, fuelled by structural supply shortage. The northwest Shaanxi province recently urged local departments,

Cadence Minerals

The only way is up

Four months ago, when iron ore prices were testing the $US150-a-tonne mark, alarm bells were warning that the forces that conspired to push the price to the stratosphere would abate. Roll the clock forward and prices are now

Cadence Minerals

Iron ore price jumps

Benchmark iron ore futures in China extended gains for a third straight session, closing at the highest price in five weeks, fuelled by falling supplies from major miners. Shipments from Australia and Brazil — China’s two major iron ore suppliers

Cadence Minerals

China’s record steel futures boost iron ore prices

Iron ore prices rose on Wednesday, as record steel prices in China prompted investors to make tentative bets, despite production cuts in the country’s steelmaking hub that have clouded the demand outlook for the raw material. According to Fastmarkets MB,