Business
Binding Investment - Amapa
Binding Investment - Amapa.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 4430B Cadence Minerals PLC 07 June 2019 \n\nCadence Minerals Plc\n(\"Cadence Minerals\", \"Cadence\" or \"the Company\")\n \nBinding Investment to Acquire Interest in former Anglo American Iron Ore Mine, Amapá, NE Brazil\nCadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that further to its announcement on the 21 May 2019 it has entered into a binding investment agreement (\"the Agreement\") with Indo Sino Pte. Ltd. (\"Indo Sino\") to invest in and acquire up to a 27% interest in the former Anglo American plc (\"Anglo American\") and Cliffs Natural Resources (\"Cliffs\") Amapá iron ore mine, beneficiation plant, railway and private port (\"Amapá Project\") owned by DEV Mineração S.A. (\"Amapá\").\nFurther information on the project is available in the Company's announcement of the heads of terms in relation to the investment on 21 May 2019 and the terms of the binding investment agreement are consistent with the heads of terms.\nhttps://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/KDNC/14082106.html\nDetails of the Agreement with Indo Sino\nThe Agreement with Indo Sino is to invest in and acquire up to a 27% of a joint venture company Pedra Branca Alliance Pte. Ltd. (\"JV Co\"). On approval of the Judicial Review Process (\"JRP\") and the transfer of equity of Amapá to the JV Co the JV Co will own 99.9% of the Amapá Project. Should Indo Sino seek further investors or an investment in the JV Co the agreement also provides Cadence with a first right of refusal to increase its stake to 49% in the JV Co.\nTo acquire its 27% interest Cadence will invest US$ 6 million over two stages in JV Co. The first stage is for 20% of the JV Co the consideration for which is US$2.5 million. The second stage of investment is for a further 7% of JV Co for a consideration of US$3.5 million. If Cadence is unable to complete the second stage of the investment or not exercise its right of first refusal under the terms of the Agreement, Indo Sino will have a twelve-month option to buy the shares in JV Co held by Cadence for 1.5 (1 ½) times the price paid by Cadence for such shares. \nCadence's investment is conditional on several material pre-conditions, which include the grant of key operating licences and the release of bank securities over the asset. On compl...