Business
Reinstatement of Railway Concessions at Amapá
Reinstatement of Railway Concessions at Amapá.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 1248W Cadence Minerals PLC 09 December 2019 \n\nCadence Minerals Plc\n \n(\"Cadence Minerals\", \"Cadence\" or \"the Company\")\n \nReinstatement of Critical Railway Concessions at the Amapá Iron Ore Project, Brazil.\nCadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that, following the approval of the judicial restructuring plan (\"JRP\") announced on August 30th 2019, along with its partners it has agreed with the State of Amapá the reinstatement of a life of mine railway concession (\"Concessions\") between the Amapá iron ore mine and the port in Santana, State of Amapá, Brazil.\n \nThe Amapá Project\nThe 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. Before its sale in 2012, Anglo American valued its 70% stake at US $462m in its 2012 Annual Report (100% US $600m). The Amapá Project is 100% owned by DEV Mineração S.A. (\"DEV\").\n \nDetails of Railway Concession\nThe reinstatement of the Concessions were agreed between Cadence, Indo Sino Pte. Ltd. (\"Indo Sino\"), and the government of Amapá, including the state secretary of transport, state secretary of planning, state secretary of the environment, attorney generals office and the office of the Governor of Amapá.\nThe Concessions are in force for the life of the mine and allows DEV's 100% owned subsidiary to operate the railway, for the primary purpose of the transport of iron ore over 180 km from the mine to the it's port in Santana. The railway will be maintained and improved to an initial capacity of approximately 5.5 million tonnes of iron ore per annum and will provide a passenger and good service. The Concessions also allows DEV to expand the capacity of the railway to transport other goods, should there be commercial demand.\n \nSatisfaction of Precondition \nThe reinstatement of the Concessions represents the satisfaction of one of the two principal preconditions for Cadence's investment in the Amapá Project and the release of US$2.5 million currently held in escrow in a judicial trust account (\"Escrow Monies\").\nThe second precondition is for us to reach a settlement agreement with the bank creditors in regards to the secured bank lending. Along with our partners, we continu...