Business
Update on Amapa Iron Ore Project Investment
Update on Amapa Iron Ore Project Investment.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n \n \n RNS Number : 9245F\n Cadence Minerals PLC\n 12 March 2020\n \n \n \n \n Cadence Minerals Plc\n \n \n \n \n \n (\"Cadence Minerals\", \"Cadence\" or \"the Company\")\n \n \n \n \n \n Update on Investment in the Amapá Iron Ore Project, Brazil.\n \n \n \n \n \n \n Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on its investment in the Amapá Iron Ore Project, Brazil.\n \n \n The Amapá Project\n \n \n 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. 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 99.9% owned by DEV Mineraço S.A. (\"DEV\").\n \n \n Successful Reinstatement of Railway Concession\n \n \n Following the approval of the judicial restructuring plan (\"JRP\") announced on August 30th, 2019, Cadence along with its partners successfully negotiated the reinstatement of a life of mine railway concession. The grant of this railway concession was announced on December 9th, 2019. \n \n \n Satisfaction of Final Precondition \n \n \n Currently, there remains only one major precondition for Cadence to make its investment in the Amapá Project, the sum of US$2.5 million currently held in escrow in a judicial trust account (\"Escrow Monies\").\n \n \n This precondition requires DEV Mineraço S.A. (\"Dev\") to reach a settlement agreement with the secured bank creditors. Since our last update, Cadence and our joint venture partners Indo Sino Pte. Ltd. (\"Indo Sino\") have been in negotiations with the secured bank creditors, and we have offered a settlement involving a discount on the amounts owned by Dev. \n \n \n This settlement is intended to be paid from part of the proceeds from the sale of the iron ore stockpile currently held at Dev's 100% owned port facility in Santana, Amapá. Alongside our partners, we continue to negotiate with the secured bank creditors, and we will update the market once a binding agreement is reached.\n \n \n On satisfaction of the preconditions and the release of the Escrow monies, Cadence will become a shareholder in the Amapá Project via our joint venture company which will own 99.9% of Dev. The Escrow Monies will then be used for the pay...