DJ Cadence Minerals PLC Amapá Operational Update
RNS Number : 0336Q
Cadence Minerals PLC
16 June 2020
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Amapá Operational Update
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that DEV Mineração S.A ("DEV"), owner of the Amapá iron ore project (Amapá Project) continues to hit its operation targets, with the movement of the stockpile to the public port scheduled commence this month and shipping to occur in early Q3 2020.
The shipment of the stockpile was approved by the commercial court of São Paulo and announced on 14 April 2020 and was supported by the judicial administrators and other creditors of DEV. The secured creditors have objected to the commercial court of São Paulo in relation to its decision and on 12 June 2020 after market hours filed a petition, none the less the original ruling still remains in force.
We have also been informed that due to court closures during the current COVID-19 outbreak in Brazil, a ruling in relation to DEV's petition to annul the secured creditors liens and charges over the Amapá Project is now scheduled for the end of June 2020.
Cadence Amapá Project stake
As mentioned in previous announcements there remains only one major precondition for Cadence to make its initial investment in the Amapá Project and release the sum currently held in escrow in a judicial trust account ("Escrow Monies").
This precondition requires DEV to reach a settlement agreement with the secured bank creditors. On satisfaction of the prerequisites and the release of the Escrow monies, Cadence will become a 20% shareholder in the Amapá Project via our joint venture company which will own 99.9% of Dev.
Cadence's rights over the Amapá Project have been formalised in the Judicial Restructuring Plan of DEV and ratified by the São Paulo Bankruptcy court. DEV officers have been appointed in the Judicial Restructuring Plan, with acceptance of creditors.
Further detail in relation to Cadence's rights, potential investment and the Judicial Restructuring Plan in relation to the Amapá Project are detailed in the announcements of the 30 August 2019 and 7 August 2019.
About the Project
The Amapá Project was owned by Anglo American plc and Cliffs Natural Resources and consists of a large-scale iron ore mine, beneficiation plant, railway and private port. In 2012 the operation produced 6.1 Mt of iron ore concentrate and reported operating profits from their 70% ownership in the Amapá Project of US$120 million (100% - US$171 million). Before its sale in 2012, Anglo American valued its 70% stake at US$462m in its 2012 Annual Report (100% - US$600m).
As previously announced, the total historical mineral resource contains an estimated 348 Mt of ore @ 38.9% iron content ("Fe"). The ore is beneficiated at the mine 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.
For further information:
Cadence Minerals plc +44 (0) 207 440 0647 Andrew Suckling Kiran Morzaria WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666 James Joyce / James Sinclair-Ford Novum Securities Limited (Joint Broker) +44 (0) 207 399 9400 Jon Belliss
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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(END) Dow Jones Newswires
June 16, 2020 02:00 ET (06:00 GMT)