Business
Amapa Project Update & Loan Financing
Amapa Project Update & Loan Financing.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n\nCadence Minerals Plc\n \n(\"Cadence Minerals\", \"Cadence\", or \"the Company\")\n \nAmapa Project Update & Loan Financing\n \nCadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce an update on the Amapá Iron Ore Project (\"Amapá\") and the completion of a Mezzanine Loan Facility (\"Loan Facility\"), which will be applied to the Amapá project.\n \nHighlights\n \nØ Savings of approximately US$28 million were identified on port refurbishment costs at Amapá.\n \nØ Cadence has agreed US$ 2 million Loan Facility (\"First Tranche\") that has been arranged by Riverfort Global Capital Ltd to be entered into by RiverFort Global Opportunities PCC Ltd and YA II PN, Ltd (the \"Investors\"). The Loan Facility allows a further US$ 8 million to be drawn down over the next three years, subject to agreement by the Investors.\n \nØ The net proceeds from Loan Facility will be used to continue the development of the Amapá Project, including optimisation studies on the processing route and environmental licensing.\n \nØ Continued investment into Amapá Project will increase the Company's stake to circa 33%.\n \nØ The term of the Loan Facility is two years, with a 6-month principal repayment holiday. The annual interest rate that Cadence will pay is 9.5%.\n \nØ The principal and interest of the Loan Facility are payable in cash. However, the Company can elect not to pay any outstanding principle or accrued interest of the Loan Facility in cash, granting the Investors the right to convert these outstanding amounts into ordinary shares.\n \nAmapá Project Port Studies\nOn 1 March, we announced that a scoping level study had been completed to improve the capital cost associated with the port refurbishment of the Amapá's wholly owned port. We have now reviewed how these changes can be integrated into the original Pre-Feasibility Study (\"PFS\"), published in January this year, and have identified that a potential net capital saving to the port refurbishment costs of US$28 million or circa 24% of the direct capital expenditure associated with the port refurbishment.\n \nThe savings were derived by moving the current rail loop, which is used for unloading iron ore at the port so that it is one hundred metres further inshore. The change in the location of the railway loop reduce...