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Mining Journal – Iron ore price to incentivise swing production, says BMO

Current iron ore prices of US$100/tonne should be enough to spark activation of about 60 million tonnes of swing production to “balance the market”, according to BMO, with perhaps 40Mt of that coming from China.

BMO director, equity research, metals & mining – international, Edward Sterck, said a restart of Vale’s stalled 30Mtpa Brucutu mine in Brazil could restore 15Mt of production in the second half of this year. But there was no sign of a restart yet.

Global iron ore production has been impacted in the first half of 2019 by Vale’s dam failure at Brumadinho in Brazil, and the continuing legal issues around Brucutu, as well as weather and fire disruptions affecting Rio Tinto and BHP in Western Australia. BMO says shipping data suggests Rio Tinto and BHP are back on track, but Vale continues to struggle.

A need for 60Mt of swing production – US$6 billion of iron ore sales – could open up opportunities for Australian and other producers, though Sterck suggested to Mining Journal that higher production and earnings were “already baked in” to valuations.

“The iron ore price remains above our forecasts, suggesting upside potential to estimates,” he said.

“The high price should outweigh the supply disruption/shortfall [in the first half].”

Cadence Minerals #KDNC – CEO Kiran Morzaria discusses the acquisition of the Amapá iron ore mine with BRR Media

Cadence Minerals #KDNC – Binding Investment to Acquire Interest in former Anglo American Iron Ore Mine, Amapá, NE Brazil

Cadence 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”).

Further 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.

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/KDNC/14082106.html

Details of the Agreement with Indo Sino

The 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.

To 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.

Cadence’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 completion of Cadence’s investment (not including the first right of refusal) our joint venture partner Indo Sino will own 73% of JV Co. The Agreement also contains security and default clauses which if triggered causes an upwards adjustment mechanism to allow Cadence to either receive cash from JV Co or receive additional shares in JV Co. In the latter case Cadence’s shareholding in the JV Co will not go above 49.9%.

On completion of the US$ 6 million investment Cadence will have the right to appoint two members to a five-member board with the remaining three comprising of one member jointly appointed by Cadence and Indo Sino and two appointed by Indo Sino.

– Ends –

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

 

For further information:

Cadence Minerals plc

                                                   +44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)

                                +44 (0) 207 220 1666

James Joyce

James Sinclair-Ford

Novum Securities Limited (Joint Broker)

                                +44 (0) 207 399 9400

Jon Belliss

 

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.

The Age: Even if it all turns sour, 2019 is already a vintage year for iron ore

The Age 30th May 2019

On Tuesday the market watched in awe as the iron ore price was elevated to eye watering levels of $US108. By Wednesday, fresh speculation over marginal additions to supply caused the Chinese iron ore futures to wobble – the price dropped 2.3 per cent.

When a commodity has soared to a five-year high in a matter of months, wild swings are not surprising.

But make no mistake 2019 will go down in history as a vintage year for iron ore.

The rally that analysts find hard to predict.
The rally that analysts find hard to predict.

Even if the price dropped significantly in the second half of this calendar year to the $US80 levels it traded at towards the end of last year, the high prices for the first five months of this year would have already bolstered the profitability of the major Australian producers and the coffers of the federal and West Australian governments.

We haven’t seen iron ore prices at this level since 2014.

If the current spot price was factored into 2020 financial year earnings for our major miners, their profits would spike 60 per cent, according to analysts.

And a year at these prices would add about $4 billion to federal government coffers.

Already this calendar year Rio shares have risen 38 per cent, Fortescue stock has doubled in price, and BHP’s shares are 12 per cent higher.

How much is left in the tank for the iron ore price run and how long it can be sustained at levels above $US100 has left forecasters at a loss; they have had to revisit their assumptions as the price trajectory regularly leapfrogs over their targeted iron ore prices.

Back in February, CBA commodities analyst Vivek Dhar predicted the iron ore price could hit $US100 – a view that at the time was seen by some as outlandish.

Three months on and the product that feeds Chinese steel mills is in even higher demand, Chinese stockpiles are at a dangerously low level, supply in the first three months of the year from Australian producers was curtailed by weather events and most importantly the production issues that have plagued Brazil are not not getting any better.

Since the mine tailings dam burst in Brazil in January, the ripple effect and the actions of regulators and courts have forced suspensions of various operations – including dams and mines.

It has resulted in a roller-coaster ride for the iron ore price.

In May, Brazil’s major producer, Vale, told prosecutors in the state of Minas Gerais that a dam was at risk of rupturing at its Gongo Soco mine, about 60 kilometres from where its Brumadinho dam collapsed in January, killing more than 230 people.

The Brumadinho dam disaster and subsequent mine and dam closures in Brazil had prompted Vale, the world’s biggest iron ore miner, to slash its iron ore sales estimate for this year.

Hopes that Vale could increase its shipments were dashed early in May after a court ordered a halt to its operations at its Brucutu iron ore mining complex, reversing a lower court decision that had allowed the mines’ activities to resume.

Analysts have generally underestimated the lengthy regulatory fallout and the repercussions associated with industrial disasters. This time is no different.

And they certainly misread the strength of China’s steel output this year – which, on an annualised basis, topped 1 billion metric tonnes.

Few have been willing to formally predict how long this iron ore boom will continue because it is not a cyclical one.

Analysts have misread the strength of China’s steel output this year.
Analysts have misread the strength of China’s steel output this year.CREDIT:QILAI SHEN

However, the general consensus is that markets should not factor in the resumption of much additional supply from Vale this year.

And this should put a floor under the price.

Some new supply (from marginal producers in India and China) may come on stream later this year – but new entrants will also be waiting to hear about the length of supply disruptions in Brazil.

Currently there are a raft of estimates for 2019 at between $US90 and $US95 and most projections fall back to $US80 levels in 2020.

For investors with iron ore stocks, 2019 is the year they hit the jackpot.

Business Insider: Iron ore futures hit record highs as Chinese inventories slide again

By Business Insider

  • Chinese iron ore futures have surged to fresh record highs on Monday.
  • Prices for major iron ore grades closed at or near multi-year highs on Friday.
  • The Commonwealth Bank now expects prices will stay higher for longer than it previously forecast, describing the recent decline in Chinese iron ore port inventories as a “major worry”.
  • Chinese port stockpiles fell to the lowest level since early 2017 last week, according to data from Mysteel Consultancy.

Chinese iron ore futures continue to soar, climbing again on Monday.

The September 2019 contract on the Dalian Commodities Exchange closed at 763.5 yuan at the mid-session break, leaving it at the highest level on record.

It’s now rallied 74% from late November last year, mirroring similar bullish price action in spot markets over the same period.

On Friday, prices for 58%, 62% and 65% iron ore fines closed at or just shy of multi-year highs, according to Metal Bulletin.

With Chinese futures continuing to soar on Monday, there may well be further gains to come in physical markets when Metal Bulletin releases its daily Iron Ore Index later in the session.

The continued price surge has analysts scrambling to revise up their iron ore forecasts, including at the Commonwealth Bank.

In a note released on Monday, Vivek Dhar, mining and energy commodities analyst at the bank, said he now expects the benchmark spot price for 62% fines to remain higher for longer compared to his previous forecasts.

“While we have always talked about iron ore prices hitting $100 a tonne, supply and demand factors are now aligned enough to justify that outcome for a little while longer,” he said, referring to the chart below showing the bank’s latest forecasts compared to those previously offered.

“We’ve upgraded our iron ore prices by 7% to $92 a tonne in 2019 and 3.5% to $74 a tonne in 2020.”

Dhar said that declining iron ore port stockpiles in China, reflecting record steel production in the nation and iron ore supply disruptions in Brazil, remain a “major worry”.

“The fact that benchmark prices are already around $104 a tonne with port stockpiles around 128 million tonnes means that shortage concerns are likely to intensify as we continue to see port stockpiles fall,” he said.

“Keep in mind that around 120 million tonnes is a ‘safe’ level for port stockpiles and price are surging even before we’ve touched that level.”

According to data from Mysteel Consultancy, Chinese iron ore port inventories have tumbled from 148.9 million tonnes in mid-April to 127.8 million tonnes last week.

Along with disruptions to Brazilian seaborne supply as a result of a deadly mine disaster at an iron ore facility operated by Vale in late January, the decline also reflects strong Chinese demand with crude steel output surging to the highest level on record during April, according to official data released by China’s National Bureau of Statistics (NBS).

Cadence Minerals #KDNC announces Heads of Terms to Acquire Interest in former Anglo American Iron Ore Mine, Amapá, NE Brazil

Cadence 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”).

The 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.

The 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.

Cadence is currently finalising the terms of the binding investment agreement, which is expected to be entered into shortly.

Highlights

  • 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.
  • 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]
  • During its operation the mine generated an annual operating profit of up to U$171 million (100%)[2].
  • The total historic mineral resource contains an estimated 348 million tonnes (“Mt”) of ore @ 38.9% iron content (“Fe”)[3]
  • The ore is beneficiated to 65% Fe Pellet Feed and 62% Fe Spiral Concentrate.
  • Based on available historic mine plans and an independent consultant review it is expected that at full production the Amapá Project has a mine life of 14 years and at full capacity is targeting to produce up to 5.3 Mt of Iron Ore per annum.
  • Initial revenue from the project is anticpated to start in Q4 2019 from the sale of the iron ore stockpile currently located at the Port of Santana , Brazil.
  • Potential for the mine and existing infrastructure to be brought to market swiftly with mining and processing anticipated to restart in 2021 subject to the grant of the necessary permits, regulatory consents and project financing.
  • Cadence is able to acquire a significant share of the mine (up to 27% of the issued share capital of PBA) for a staged equity investment of US$ 6 million and has a first right of refusal to acquire up to 49%.
  • 65% Iron Ore (CFR) North China have increased from US$95.95 per dry metric tonne (“$/dmt”) to US$111.90 / dmt since early September 2018 to the middle of May 2019[4]

Cadence Minerals CEO Kiran Morzaria commented: 

“It is rare in our industry to be presented with an opportunity to put forward a relatively modest investment to participate in such a project that we believe provides us with a potentially transformative asset for our Company. The Amapá Project gives Cadence the potential for an exceptional ROI in the run up to full production and an opportunity to become a significant shareholder in a mid tier iron ore producer. “

“Our participation in the project has been ongoing for some 9 months, involving an extensive and comprehensive due diligence process. Through this we have gained a thorough understanding of the judicial restructuring process, and along with IndoSino, we have submitted the Judicial Restructuring Plan to the courts in Brazil”

“Given the nature of the asset the capital costs are estimated to be substantially lower than would be normally associated with developing a similar sized project from scratch. As the project restarts operations, it is hoped it can move rapidly forward to revenue generation by Q4 2019, and to see the mine fully operational in 2021.”

“On behalf of myself and the Cadence team, we are wholly enthused by the opportunity the Amapá Project presents, and we are excited by the prospect of restarting mining operations.”

The Project

As part of its due diligence and assessment Cadence has carried out multiple site visits and commissioned SRK Consulting to provide it with a high-level review of the Amapá Project. This review was based on a site visit, historical analysis and the review of technical independent engineers reports published 2013 and 2015. It should be noted that this review provides a basis for a preliminary assessment of the project and its potential but further, more detailed reviews and analysis would be required to provide a Pre-Feasibility Study level report. This would include amongst other things, providing a current Mineral Resource Estimate and/or Ore Reserves, updated capital and operating costs and an independent assessment of key economic drivers and returns.

The Amapá Project consists of an open pit iron ore mine, railway and port facility and is located in Amapá State, northeast Brazil. The Amapá mine site, forming part of the Amapá Project, is located near the towns of Pedra Branca do Amapári, and Serra do Navio, approximately 200km northwest of Macapa.

The Amapá Project has minerals rights over 5,556 hectares comprising three separate mining licenses and an exploration permit. The historic Mineral Resource contained within the licenses is of some 348 Mt at 38.9% Fe. A summary of the historic Mineral Resources from 2012 is tabulated below.

Classification Tonnes (Mt) Fe(%)
Measured 62.9 39.7%
Indicated 233.4 39.2%
Measured and Indicated 296.3 39.2%
Inferred 52.3 37.0%
Total 348.6 38.9%

Table 1 – 100 per cent. Amapá project historic resource table at 25% Fe(T) cut-off for December 2012 (Source Anglo American.)

It should be noted that the Minerals Resource was assessed by Anglo American as at the 31 December 2012 (Annual Report 2012, Anglo American, p.198) and was prepared under the Australasian Code for Reporting of Exploration Resources and Ore Reserves 2004 edition (“JORC”). Given the passage of time this assessment is not valid under JORC. Further work and assessment would need to be undertaken to assess and update any current Mineral Resource or Ore Reserve.

Based on available historic mine plans and the independent engineers review the JV partners current mine plan envisages a mine life of 14 years. Management estimate prior to the start of mining the Amapá Project will also ship the iron ore stockpiles held at the dock which is estimated to start in Q4 of this year and continue for two years . The mine is open pit and has a planned strip ratio of 0.9:1.

The beneficiation plant consists of a crushing circuit followed by screening, flotation, thickener and filtering to produce 65% Fe Pellet Feed in addition the plant produces a 62% Fe Spiral Concentrate. The current mine plan would mean that the Amapá Project would produce at steady state production an estimated 4.4 Mt of 65% Fe and 0.9 Mt of 62% Fe per annum.

The intention is that these products would then be transported from the mine to the railhead by on-highway trucks along an unpaved road, a road haul distance of 13km. From the railhead, the products would then be transported 180km by rail to the port facility at Santana. The products would then be stockpiled at the port facility and mechanically loaded onto “Handymax” vessels which navigate the Amazon River out to sea and then transported onto larger “Capesize” vessels before the products are sold to the market. The products produced by the Amapá Project are well known in the market, especially in China where most of the historic production was sold.

Operational Plan

On approval of the JRP by the creditors of the Amapá Project and the satisfaction of the conditions precedent, which includes the grant of operating licences and regulatory consents, shipping of the Iron Ore at stockpile will commence as soon as possible. Based on our current understandings of the JRP timings, it is anticipated this is targeted to commence in Q4 2019.

Cadence’s investment will provide the initial working capital and will be utilised to complete a detailed recommissioning study and pay some of the historic creditors. The recommissioning study will provide definitive operating and capital expenditure numbers and a timeline for recommissioning. The remainder of the required capital expenditure and working capital is expected to be raised predominantly from project debt. Full recommissioning is estimated to take 12-18 months with mining production targeted to start in 2021.

Details of the Heads of Terms with IndoSino

Cadence has agreed HOT with IndoSino to acquire up to 27% of the joint venture company that on approval of the JRP and transfer of equity to PBA will own 99.9% of the Amapá Project. Should IndoSino seek further investors or investment in PBA the agreement also provides Cadence with a first right of refusal to increase its stake to 49% in PBA. To acquire its 27% interest Cadence will invest US$ 6 million over two stages in the joint venture company, Pedra Branca Alliance Pty Ltd. (“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.

Cadence’s investment is conditional on several material pre-conditions, which include the grant of key operating licences, and On completion of Cadence’s investment (not including the first right of refusal) our joint venture partner IndoSino will own 73% of JV Co by assigning its registered creditor rights and pledge over three iron ore stockpiles it holds in the Amapá Project to PBA. There are conditions precedent to Cadence’s investment which mirror the conditions set out in the JRP this ensures that its investment risk is substantially mitigated.

Details of the JRP

In advance of entering into the investment agreement, Cadence has agreed that Amapa may make its original application to the court to commence the approval of the JRP. Notwithstanding the JRP naming Cadence within its application, Cadence is not directly a party to the JRP but is in regular consultation with Amapa.

Cadence and IndoSino have submitted a JRP to the Commercial Court of São Paulo. This plan sets out how and under what terms Cadence and IndoSino will invest via PBA in the Amapá Project and if approved by creditors will mean that PBA will own 99.9% of the Amapá Project. Given that there were no other valid plans submitted and the JRP was similar to a previously approved plan, the Directors believe that the JRP will be approved by the creditors.

The JRP is part of a regulated process under the laws of Brazil, in which the company under judicial review and investors can submit a recovery plan which will allow the company under judicial review, in this case the Amapá, to trade under a protected status while it recovers from its financial difficulties. The JRP provides a defined schedule of the payment of historic creditors. The JRP schedule contemplates the majority of the historic liabilities will be paid from free cash flow in years 7 to year 17 of operations which represents a discounted NPV10 debt value of approximately US$106 million.

The plan requires approval by  a general meeting of the creditors and once approved the company can continue to operate and trade under the protection of the JRP. At this point in time this meeting is expected to occur by the end of June 2019.

History of the Amapá Project

The Amapá Project commenced operations in December 2007 with first production of iron ore concentrate product of 712 kt in 2008.

In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapá Project in 2008 as part of a larger package of mining assets in Brazil.

Production steadily increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012 respectively.  During this period Anglo American report operating profits from their 70% ownership in the Amapá Project of US$120 million (100% US$171 million) and US$54 million (100% US$ 77 million)[5]

Prior to its sale in 2012 Anglo American valued it’s 70% stake in Amapá Project at US$866 million (100% 1.2 billion) it impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million[6]

In March 2013, before the acquisition was completed the port facility suffered a ground failure which interrupted production and mining subsequently ceased in March 2014. Anglo American completed the sale in November 2013[7].  During 2014, reconstruction work commenced at the port with some iron ore concentrate product being shipped during Dec 2013 and into 2014, via an interim barging solution The Amapá Project borrowed US$135 million senior debt from a banking group led by Intesa São Paulo and rebuilt 70% of the port.

Amapá filed for judicial protection in August 2015 in Brazil and mining ceased at the Amapá Project. In April 2017, a group agreed to invest via a creditor approved judicial review plan. However, the transaction was never completed, and Amapá was placed under judicial protection once again. A judicial order offered investors and creditors the opportunity to file a revised JRP. Cadence and IndoSino have taken the opportunity to file a revised JRP, as described above.

Cadence Minerals #KDNC – Macarthur Minerals (TSX-V: MMS) Announces US$6m Financing to Complete Moonshine Magnetite and Ularring Hematite Iron Ore Bankable Feasibility Study.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (TSX-V: MMS) (“Macarthur”) has announced the issuance of a private placement offering (the “Offering”) of up to US$6 million of secured Convertible Note (“Note”).

The proceeds from the offering will be used to complete a Bankable Feasibility Study (“BFS”) on Macarthur’s Moonshine Magnetite and Ularring Hematite iron ore deposits in Western Australia. The BFS will include a 54-hole drill program.

Macarthur owns 100% of the Moonshine Magnetite Project, with an Inferred and Indicated Mineral Resource Estimate consisting of 1,316 million tonnes (Mt) @ 30.1% Iron (Fe). Initial metallurgical test work from core at Moonshine indicated that a very high-grade iron ore product ranging from 68.5%-69.1% Fe, can be achieved as an export quality target.

The Inferred Mineral Resource estimate for the Moonshine Magnetite Project was initially prepared by CSA Global Pty Ltd (NI43-101 Technical Report filed December 17, 2009, titled “NI43-101 Technical Report on Lake Giles Iron Ore Project: Western Australia”) and was updated by Snowden Mining Industry Consultants (NI43-101 Technical Report filed March 25, 2011, titled “Macarthur Minerals Limited: Moonshine and Moonshine North Prospects, Lake Giles Iron Project, Western Australia, NI43-101 Technical Report – Preliminary Assessment”).

Macarthur also owns the Ularring Hematite Project, with a Mineral Resource Estimate consisting of Indicated 54.46 Mt @ 47.2% Fe and Inferred 25.99Mt @ 45.4% Fe, previously announced on August 16, 2012 (NI 43-101 Technical Report filed October 1, 2012, titled “NI 43-101 Report, Macarthur Minerals Limited, Pre-Feasibility Study, Ularring Hematite Project, Western Australia”). The Pre-feasibility Study focused on utilising all Probable Mineral Reserve of 42.95Mt @ 47% Fe hematite, producing a 60.1% Fe sinter fines product.

Cadence holds approximately 10% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=6810804576807869&qm_symbol=MMS

Cadence Minerals CEO Kiran Morzaria commented: “As a major shareholder in the Company, Cadence Minerals are delighted that Macarthur Minerals has seized the initiative to progress the Moonshine Magnetite and Ularring Hematite Iron Ore projects with a US$6m offering. Existing data indicates solid potential for a quality iron ore product at both projects.” 

“To quote Macarthur CEO Cameron McCall: ‘what makes this project unique is the close proximity to existing under-utilized rail and port infrastructure. The recent disruption in supply in the iron ore market creates a market that is seeking high grade low impurity products, and the Moonshine Magnetite product is ideally suited to fill this supply void and to meet this shift in product preference by the major Chinese and global markets.’ In summary, we at Cadence believe that securing funding at this juncture further strengthens the Macarthur investment proposition.”

This news release is not for distribution to United States Services or for Dissemination in the United States.

– Ends –

 

For further information:

Cadence Minerals plc                                                    +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)                                 +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Hannam & Partners LLP (Joint Broker)                                 +44 (0) 207 907 8500
Neil Passmore
Giles Fitzpatrick
Novum Securities Limited (Joint Broker)                                 +44 (0) 207 399 9400
Jon Belliss

 

 

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.

Cadence Minerals (KDNC): Macarthur Minerals (TSX-V: MMS) Lists on OTCQB and Comments on Iron Ore Price Surge.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (TSX-V: MMS) (“Macarthur”) today announced that it has joined the OTC marketplace, OTCQB. The OTCQB Venture Market offers the benefits of being publicly traded in the United States to expand Macarthur’s access to investors, engage them with quality disclosure of financials and provide trading transparency to stimulate liquidity. Investors can find current financial disclosure and Real-Time level 2 quote for Macarthur on www.otcmarkets.com. Macarthur trades in the United States on OTCQB under the symbol “MMSDF”.


Cameron McCall, Chairman of Macarthur Minerals. Mr. McCall said:

 “Global Markets have recently seen iron ore prices surge dramatically on the reduced supply as a result of the shutdowns and disasters that have occurred in Brazil, a leading producer of Iron Ore. states aWith continued demand and a significant supply reduction Macarthur is well positioned to advance the Ularring Hematite and Moonshine Magnetite Projects located 175km northwest of Kalgoorlie, Western Australia into production in a timely manner.”

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=7965805934807637&qm_symbol=MMS

Cadence holds approximately 10% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.

Cadence Minerals CEO Kiran Morzaria commented: “On behalf of Cadence Minerals, we fully support the move by Macarthur to list on the OTCQB and thereby expand its investor reach. In addition, the reduction in iron ore supply and consequential surge in price further strengthens the Macarthur investment proposition.”

This news release is not for distribution to United States Services or for Dissemination in the United States. 

– Ends –

 

For further information:

Cadence Minerals plc                                                    +44 (0) 207 440 0647
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Broker)                                 +44 (0) 207 220 1666
James Joyce  
James Sinclair-Ford  
   
Hannam & Partners LLP (Joint Broker)                                 +44 (0) 207 907 8500
Neil Passmore  
Giles Fitzpatrick  
   
Novum Securities Limited (Joint Broker)                                 +44 (0) 207 399 9400
Jon Belliss  

 

 

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.

 

Cadence Minerals #KDNC – Macarthur Minerals TSX-V: #MMS appoints Capstan Capital Partners as Exclusive Advisers to Advance Its Significant Iron Ore Projects in Australia

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (“Macarthur”, TSX-V: MMS) has entered into an exclusive advisory agreement with UK based Capstan Capital Partners LLP (“Capstan”) to seek the necessary funding required to advance Macarthur’s significant iron ore projects located in Western Australia.

Highlights:

  • Macarthur owns 100% of the Macarthur Iron Ore Projects, which are located on approved mining tenements covering approximately 62 km2 and are located 175 km northwest of Kalgoorlie in W Australia. The Macarthur Iron Ore Projects consist of two distinct mineral projects:
  • The Ularring Hematite Project: encompassing hematite iron ore (“hematite”), to be marketed as potential direct shipping and/or beneficiated iron ore; and
  • The Moonshine Magnetite Project: encompassing magnetite iron ore (“magnetite”), to be marketed as a beneficiated magnetite concentrate.
  • The Ularring Hematite Project has been fully approved for mining and the Company has been maintaining the core iron ore projects’ assets in good standing with the Western Australian Government, since their discovery. The Moonshine Magnetite Project presents a very large untapped resource of mostly high-grade magnetite with an expected productive life of at least 50 years.
  • The Company has been reviewing its iron ore projects in light of the emergence of rail and port capacity through to the Port of Esperance and the cessation of mining at Cleveland-Cliffs Inc’s Asia Pacific Iron Ore projects and Mineral Resources Limited’s Carina project.

Cadence holds approximately 12% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on lithium, iron ore and gold in the Pilbara region of Western Australia. It also has a lithium project in Nevada, USA.

The full release can be found at:

https://web.tmxmoney.com/article.php?newsid=6183182474537427&qm_symbol=MMS

Cadence Minerals CEO Kiran Morzaria commented:“This agreement with Capstan is testament once again to the quality and diversity of the Macarthur asset portfolio. Cadence are also of the view that we are entering in to a new prolonged upward trend cycle for iron ore, and this new agreement, along with the raft of recent developments announced across Macarthur’s other projects provides, what the Company believes, is a positive ongoing investment proposition.”

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

– Ends –

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Hannam & Partners LLP (Joint Broker) +44 (0) 207 907 8500
Neil Passmore
Ingo Hofmaier

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.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achievinghigh rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to keymarketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Forward-LookingStatements:

Certain statements in this announcement are or may be deemed to be forward-lookingstatements. Forward-lookingstatements 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-lookingstatements 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 keypersonnel 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.

Cadence Minerals #KDNC – Macarthur Minerals TSX-V: #MMS identifies 18 High Priority Conductors for Gold at Hillside Gold Project in Pilbara, W Australia

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (“Macarthur”, TSX-V: MMS) has identified 18 High Priority Conductors for Gold from its recent heliborne SkyTEM electromagnetic survey at the Hillside Gold Project in Pilbara, Western Australia. The discovery also includes two isolated discrete bedrock conductors. Macarthur has confirmed that all anomalies correlate with historic gold workings, surface copper and gold geochemical anomalies, magnetic anomalies or fault systems.

Highlights:

  • The heliborne SkyTEM survey was flown over 846 line-kilometres at 150m-line spacing covering a total area of 127 km2.Data was captured across two disjunct areas; Area 1 in the north covering 76 km2 and Area 2 in the south covering 51 km2.
  • Data was processed by geophysicists at Newexco Services Pty Ltd. All observed anomalies were ranked against multiple criteria with a total of 18 anomalies considered to be high priority for follow-up in the field and consideration as a drill target.
  • Area 1 of the Aerial Electronic Magnetic (“AEM”) results showed a series of stratigraphic conductors running north-south along the eastern flank of the survey area.
  • Area 2 shows a prominent stratigraphic conductor running along the western side of the survey area, and also contains two discrete conductors central to the survey area. These conductors are interpreted as being “isolated” and may be sources by confined bedrock conductors, which in some cases can be associated with massive sulphide accumulations such as gold and copper.
  • The two discrete conductors are considered likely to be associated with volcanogenic massive sulphide (“VMS”) style copper-gold mineralization and hence are high priority targets. Previously recorded gold and copper anomalies and gold workings lie directly to the north and south along strike of these discrete anomalies. It is speculated that the two discrete conductors could host similar deposits at depth, VMS style.

The identified multiple outstanding anomalies identified will require follow-up exploration in the field. Geological mapping and geochemical sampling will be undertaken across these target areas, followed by drilling of selected targets.

Cadence holds approximately 12% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on lithium, iron ore and gold in the Pilbara region of Western Australia. It also has a lithium project in Nevada, USA.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=8631055666624229&qm_symbol=MMS

Cadence Minerals CEO Kiran Morzaria commented:“The dataset recorded from the SkyTEM electromagnetic survey proves that the right geology exists at the Hillside Gold Project, and adds further credence to the project economics for Cameron McCall and the Macarthur Minerals team.”

“From the Cadence Minerals perspective, the update today significantly improves the investment case, and we look forward to the next phase of developments.”

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

– Ends –

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Hannam & Partners LLP (Joint Broker) +44 (0) 207 907 8500
Neil Passmore
Ingo Hofmaier

 

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.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achievinghigh rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to keymarketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Forward-LookingStatements:

Certain statements in this announcement are or may be deemed to be forward-lookingstatements. Forward-lookingstatements 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-lookingstatements 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 keypersonnel 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-lookingstatements.

 

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