Last checked at 26 Aug 2020 07:00
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Update on Investment in the Amapa Iron Ore Project, Brazil.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on its investment in the Amapa Iron Ore Project, Brazil.
Progress with Secured Bank Creditors
Since our last update in early August, DEV Mineração S.A's ("DEV") Cadence and Indo Sino Pty Ltd ("the Investors") have continued a constructive dialogue with the secured bank creditors ("Bank Creditors") and the parties are currently negotiating the settlement terms as proposed by the Bank Creditors.
As mentioned in previous announcements, the remaining major precondition for Cadence to make its initial investment in the Amapa Project requires DEV to reach a settlement agreement with the Bank Creditors. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapa Iron Ore Project via our joint venture company which will own 99.9% of DEV Mineração S.A's ("DEV").
Further details about Cadence's rights, potential investment, and the Judicial Restructuring Plan in relation to the Amapa Project are presented in our annual accounts published at the end of June and the announcements of the 30 August 2019 and 7 August 2019.
Commercial Court of São Paulo ("the Court")
On the 28 July, the Court, responding to an appeal by the Bank Creditors, reaffirmed its decision of April this year allowing DEV to commence shipping iron ore from the stockpiles situated at DEV's wholly-owned port in Santana, Amapa. Cadence has been informed that the Bank Creditors have now filed an appeal to a higher court, none the less the original ruling still remains in force.
- Ends -
For further information:
|
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.