Business
Heads of Terms - Iron Ore Mine, Amapá
Heads of Terms - Iron Ore Mine, Amapá.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 7234Z Cadence Minerals PLC 21 May 2019 \n\nCadence Minerals Plc\n(\"Cadence Minerals\", \"Cadence\" or \"the Company\")\n \n Heads of Terms 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 it has entered into a non-binding Heads of Terms (\"HOT\") with IndoSino Pte Ltd. (\"IndoSino\") 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\").\nThe Amapá Project is a large-scale iron open pit ore mine with associated rail, port and beneficiation facilities and commenced operations in December 2007.Production increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012 respectively.\nThe HOT stipulates that Cadence, upon entering into a binding investment agreement, will have the right to acquire 27% of the Amapá Project by investing a total of US$6 million over two stages into a joint venture company, Pedra Branca Alliance Pte Ltd. (\"PBA\"). Cadence's investment is conditional, amongst other matters, on the approval of a judicial restructuring plan (\"JRP\") submitted by Cadence and IndoSino to the Sao Paulo Commercial Court in Brazil, the transfer of 99.9% of the issued share capital of Amapá to PBA and Cadence raising the required finance. Cadence is in discussions with potential strategic investors to fund all or part of this investment via equity. \nCadence is currently finalising the terms of the binding investment agreement, which is expected to be entered into shortly.\nHighlights\n• The Amapá Project is a large-scale open pit iron ore mine with associated rail, port and beneficiation facilities and is located in the Amapá state, north-east, Brazil. \n• Prior to its sale in 2012 Anglo American valued its 70% stake in the Amapá Project at US$866 million (100% 1.2 billion) and after impairment valued it at US $462m in its 2012 Annual Report ( 100% US $600m) [1]\n• During its operation the mine generated an annual operating profit of up to U$171 million (100%)[2].\n•...