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Cadence Minerals #KDNC – Vox Markets Investor Presentation and Q&A

Cadence Minerals #KDNC CEO, Kiran Morzaria offers an overview and update of the Company’s investments and ongoing strategy.  Kiran then answers questions from the Vox Community where he discusses the Amapa Iron Ore Project, future milestones of European Metals Holding and the Company plans for the coming year.

Cadence Minerals #KDNC – Macarthur Minerals (TSX-V: MMS, ASX: MIO) – Arrow Land Tenure Agreement and Applications Lodged for Haul Road and Rail Siding for Lake Giles Iron Project

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (TSX-V: MMS) (“Macarthur”) has announced the completion of an agreement with Arrow Minerals Limited (ASX: AMD) (“Arrow”), for the grant of rights to apply for tenements which will support the development of infrastructure associated with a proposed magnetite processing circuit at Lake Giles.

Cadence also notes that on 25 June 2020, Macarthur lodged applications with the Department of Mines, Industry, Regulation and Safety (“DMIRS”) to develop a 93km haul road from its Lake Giles Iron Project to a proposed rail siding adjacent to the Perth to Kalgoorlie rail line in the Yilgarn region of Western Australia

Arrow Land Tenure Agreement

Pursuant to the Agreement, originally entered into in December 2019, (“Agreement”), Arrow will permit Macarthur to apply for and obtain a general purpose lease and a miscellaneous licence over a site within the boundary of Arrow’s exploration licences E30/393 and E30/394, to support the development of infrastructure associated with its planned magnetite processing circuit for its Lake Giles Iron Project (“Project”).  The substantial package of land covers approximately 4,950ha and is adjacent to the Moonshine magnetite deposit. The tenure will be used for constructing supporting infrastructure for the mine including a processing plant, camp, airstrip, tailings storage facility and waste rocks dumps.

The terms upon which Arrow agreed to permit Macarthur’s application included a cash payment of A$250,000 (paid in December 2019) (“Cash Payment”) and a share payment comprising the issue of Macarthur shares to Arrow to the value of A$250,000 (exclusive of GST) at an issue price per share equivalent to a 20% discount to the average VWAP of the shares trading on ASX for the 5 trading days preceding the issue date, and on which trades for the shares were recorded (“Share Payment”).  Macarthur made the Share Payment on 23 June 2020, resulting in the issue of 1,702,997 shares at an issue price of A$0.1468 per share.

The full Arrow Land Tenure release can be found at: https://web.tmxmoney.com/article.php?newsid=6417845063071316&qm_symbol=MMS

Road and Rail Links

Subject to obtaining required approvals and completion of construction, the proposed haul road and rail siding will provide optionality for the transport of iron ore by rail to either Esperance Port or the Port of Kwinana.

This key infrastructure is intended to support the development of Macarthur’s flagship Moonshine magnetite deposits at Lake Giles, targeting a +65% Fe beneficiated magnetite concentrate, and opens up the opportunity to exploit Direct Shipping Ore (“DSO”) from the Ularring hematite deposits.

In 2012, the Company completed a Pre-Feasibility Study for the mining of iron ore from its Ularring hematite deposits targeting a +60% Fe beneficiated fines sinter product. Given the current robust iron ore market, the Company is currently examining the opportunity to accelerate operations for the mining of DSO (as Stage 1) from its Ularring hematite deposits with the objective of generating early revenue flows. The development of new road and rail siding infrastructure has the potential to facilitate this, in addition to supporting the development of the Company’s flagship Moonshine magnetite resource (Stage 2) following completion of a successful Feasibility Study for the Lake Giles Iron Project which is currently being progressed.

The full Haul Road and Rail Siding Application release can be found at: https://web.tmxmoney.com/article.php?newsid=7029129052456326&qm_symbol=MMS

Macarthur President and Executive Chairman Cameron McCall commented: “The completion of the agreement with Arrow has secured the rights necessary to enable the design and location of critical inf rastructure associated with the magnetite processing plant which will be finalised as part of the Feasibility Study for the Lake Giles Iron Project.”

“Defining route-to-market infrastructure has been the core focus for the Company throughout 2020. Completion of the Lake Giles Iron Project Feasibility Study will require Macarthur to have engineering designs and tenure for a haul road from the Lake Giles Iron Project to a rail siding with access to the existing rail network. The proposed haul road and rail siding also creates the opportunity to support Stage 1 hematite mining operations at Lake Giles ahead of the commencement of Stage 2 commercial magnetite mining operations. The Board considers that advancing early-revenue generating operations would support re-rating of Macarthur as a producer and will complement the announced pathway for the development of its flagship high-grade Moonshine magnetite resource at Lake Giles.”

Cadence CEO Kiran Morzaria commented: “We are pleased to note that Macarthur is steadily advancing the Lake Giles Iron Project, and backed by a robust iron ore market is looking to accelerate operations for the mining of DSO. In our results announcement earlier today, our Chairman noted our ‘timely focus’ on iron ore opportunities. Certainly the developments announced today further validates our investment strategy, both in regard to a potential re-rating of Macarthur as a producer and into our own efforts in developing the Amapá iron ore project.”

Cadence Minerals Holding in Macarthur

Cadence holds approximately 3% 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.

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
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 – Results for the Year Ended 31 December 2019

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce its final results for the year ended 31 December 2019. A copy of the full results will be made available on the Company’s website from today at https://www.cadenceminerals.com/  

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

CHAIRMAN’S STATEMENT

For the year ended 31 December 2019

___________________________________________________________________________________

First and foremost our thoughts are with families and friends, shareholders and investors during this shape-shifting pandemic. The Board and I hope all have found comfort and safety, well being and support during these extraordinary and unprecedented times.

There is no doubt that such turbulent conditions have created major disruptions and dislocations. However the Board has been well prepared and ready. I thank my fellow Board members for this dynamism and effort. Cadence Minerals (“Cadence” or the “Company”) staff and management have been used to working remotely and via phone/ video conference and quickly adapted to this new challenge.

The Board has continued its driven agenda to proceed with the support for portfolio companies whilst at the same time progress with the main target of the Amapá iron ore project in Brazil.

To this effect and to highlight a few of the achievement by our portfolio companies I would like, with the Board to offer congratulations to MacArthur Minerals on the successful conclusion of its convertible note, the life of mine Off -take agreement with Glencore and the successful listing on the Australian Stock Exchange. These are noticeable achievements for the company and combined with the ongoing successful drilling campaigns at Lake Giles bodes well.

Further European Metal Holdings  successfully concluded a lengthy negotiation with the Czech utility company CEZ. This will allow EMH to complete many of its strategic goals and to become one of Europe’s largest and lowest cost lithium producers.

Hastings Technology are JV partner in the Yangibana Rare Earths project also concluded and completed a negotiation with the German based Schaffler Group that will enable the company to pursue its targets.

The Board hope that the next few years will witness a significant harvest as projects progress to operation and revenue, and previously identified opportunities realise higher valuations. All management companies of the portfolio companies within Cadence are wished the best of success.

The recent economic contraction has been severe and turbulent. However our investments have always been based on long-term assumptions and not the idiosyncrasies of the market. There is significant hope that recently announced global stimulus measures will lead to a re opening and recovery sooner than later. This will contribute to a significant appreciation in the company’s portfolio and therefore revenue and shareholder return.

Cadence’s focus on iron ore opportunities appears particularly timely. The stimulus measures specifically relate to infrastructure which benefits Steel demand which by derivative benefits Iron Ore consumption. Argus publications have reported April and May 2020 China steel production higher than that in 2019 and have predicted that China will produce over 1 billion tons of Steel in 2020. This will require more Iron Ore globally and should support the long term Iron Ore price.

China have announced over $140 billion in provincial bonds with increasing government incentives in real estate and infrastructure, which account for over fifty percent of Chinese domestic Steel demand. It is clear that steel production and therefore Iron Ore demand is at the front and center of global stimulus policy.

A rapid global supply response to higher iron ore prices and steel demand has some serious headwinds and constraints. The tragic events at Vales Brumadinho operations and the higher capital costs of new projects represent such challenges. Economic and political struggles combined with higher governance and regulation means operational consistency and good fortune is required to continue to supply the insatiable Steel demand.

Cadence has focused enormous efforts on the Amapá iron ore project. It is immensely pleasing for the board that significant milestones and hurdles were recently achieved, all whilst the global economy was on ” pause” Cadence and its partners, lawyers and consultants all maintained dialogue and pressure to focus on the process to achieve significant results. This will initially result in the movement of of iron ore currently stockpiled and ultimately in the rehabilitation of the Amapá system. As the opportunity progresses the Board is cognizant of the need for sustainability at all levels of the opportunity. The performance and Governance metrics that will be required to re habilitate the mine; port and rail will be stringent and strict.

Cadence has proven its ability to be flexible, opportunistic and survive and thrive. The Board feels the underlying conditions are developing to optimise the portfolio.

I would like to personally thank all Cadence’s management, fellow board members, staff ,consultants, partners and of course all Shareholders for their support and confidence in the Company.

Andrew Suckling

Non Executive Chairman

25 June 2020

Link here for the full results and accounts statement

Cadence Minerals #KDNC – Alan Green interviews CEO Kiran Morzaria, plus shareholder Q&A

Alan Green talks to Cadence Minerals #KDNC CEO Kiran Morzaria. Kiran talks about the company’s investments into the Czech Cinovec Lithium project via European Metals #EMH, Macarthur Minerals iron ore projects in Australia, plus Lithium JV’s with Bacanora in Mexico and Hastings Tech Metals at Yangibana, Australia. Kiran then elaborates on the company’s flagship Amapa Iron ore project in Brazil, discusses the latest developments re shipping the ore stockpile, the fundraise for the scoping study plus the value inflection points going forward. Alan and Kiran then go through a shareholder Q&A, before Kiran finally provides key takeaway points for. investors, highlighting the valuations on each of the projects.

UK Investor Magazine – Cadence Minerals #KDNC – Transformation Cycle

AIM listed Cadence Minerals (AIM: KDNC) continues to make substantial progress with the former Anglo American Iron Ore mine, railway and port at Amapá in Brazil.

Since September 2018, the board has conducted an exhaustive, ongoing round of due diligence and legal processes to bring the mine out of administration, into a recommissioning programme and ultimately back to production.

Back in April 2020, Brazil’s Commercial Court of São Paulo ruled that DEV Mineração S.A., owner of the Amapá iron ore project and 99% owned by Cadence, could commence shipment of the iron ore stockpiles situated at the wholly-owned port in Santana, Amapá, Brazil.

Independent surveys of these iron ore stockpiles indicate that some 1.39 Mt of iron ore in three stockpiles are available for immediate export with an average Fe grade of 62.12%.

Despite the impact of the Covid-19 lockdown in Brazil, shipment is still expected
to commence on schedule late Q2, early Q3 2020. The net proceeds will go to pay labour and small creditors, invest in the recommissioning of the assets and essential maintenance.

Currently rehabilitation of the mine, railway and port is expected to be completed in 2022. A production ramp up will see 5.3 million tonnes of iron ore produced per annum within 3 years of completion of the rehabilitation. The local economy will also see significant benefits, with hundreds of new jobs and employment opportunities.
The financials make impressive reading too.

Net revenues after shipping from the former Anglo American mine is forecast to be approximately $265m per annum, with EBITDA of approx $136m per annum based on a conservative iron ore price of $61 per tonne. Currently the iron ore price squeeze sees the commodity trading at up to $100 per tonne.

“This is a huge step change for Cadence,” says Cadence CEO Kiran Morzaria.

“Our range of lithium and iron ore investments continue to add value, but once
settlement is finalized with our creditors, Cadence will own 27% of Amapá, with options to acquire up to 49%. Our EBITDA forecasts will deliver a material change to current valuation metrics for our company.”

While the focus is certainly on Amapá, the rest of the Cadence portfolio is nonetheless impressive. Cornerstone stakes in projects such as the Cinovec Lithium and Tin Project in the Czech republic and Macarthur Minerals’ Lake Giles Iron Project in Western Australia has provided Cadence with opportunities to invest into assets such as Amapá.

Cinovec, 50% owned by European Metals Holdings (AIM: EMH) and Eastern European utility giant CEZ is set to become a major European and Global lithium supply hub to meet the boom in batteries and electric vehicles, with demand anticipated to grow some 800% by 2030. Cadence also has a range of other lithium and rare metal investments, plus a joint venture at the Yangibana Rare Earths project in Australia with Hastings Technology Metals (ASX: HAS).

Cadence Chairman Andrew Suckling is also a non-executive director of Macarthur Minerals (TSX-V: MMS, ASX: MIO) and chairman of the Audit Committee. Macarthur stated recently it was ‘encouraged by the robust iron ore market’, and also buoyed by the recent share price performance of Cadence Minerals, one of its largest shareholders.

City institutions are also waking up to Amapá’s potential, with broker WH Ireland noting that the “healthy margin from sales of the easy to ship iron-ore stockpile could be used to pay senior bank creditors, complete a feasibility study into the reopening of the mine and pay for some of the new infrastructure required.”

AIM listed Cadence currently trades on an asset backed market cap of just £7m, although with the current transformation cycle the company is undergoing, that
could be unlikely to last.

Cadence Minerals #KDNC – Macarthur Minerals (TSX-V: MMS) announces that Assays have been completed for infill drilling of the Lake Giles Iron Project.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (TSX-V: MMS) (“Macarthur”) has recently received the final XRF and Davis Tube Recovery (DTR) assays for the infill drilling program completed at its Lake Giles Iron Project near Kalgoorlie in Western Australia. The DTR assays confirm significant intersections of magnetite mineralisation with DTR concentrate grades up to 68.9% Fe.

Cadence Minerals Holding in Macarthur

Cadence holds approximately 4.1% 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.

Highlights:

Drilling at the Moonshine North deposit comprised 21 reverse circulation (RC) holes for 3379 metres and 9 diamond drill (DD) holes for 1676.2 metres, totalling 5055.2m. A weighted average DTR concentrate grade of 66.6% Fe and weighted average mass recovery of 31.2% was recorded. A total of 25 holes were submitted for XRF and DTR analysis.

Macarthur has now engaged CSA Global to complete an updated resource model and classification.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=5771056257152729&qm_symbol=MMS

Macarthur Executive Chairman Cameron McCall said; “The assay results for the infill drilling confirmed good intersections of magnetite. This has been a successful program, and these intersections will form the basis of a revised mineral resource estimate that will underpin the Feasibility Study. Macarthur has been working hard on progressing key components of the Lake Giles Iron Project, and is well underway in advancing discussions to achieve a contracted position with port and rail service providers. We look forward to informing investors about the outcomes of the updated resource classification that is anticipated to include Indicated and Measured Mineral Resources, and to further advising on progress on the Company’s march toward securing its route to market.”

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
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) announces that further exploration for gold and copper is planned for the Hillside Project.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (TSX-V: MMS) (“Macarthur”) has today provided an update on planned exploration activities at its Hillside Gold and Copper Project by it’s Joint Venture Partner, Fe Limited (“FEL”) .

Cadence Minerals Holding in Macarthur

Cadence holds approximately 3.1% 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.

Highlights:

  • Down dip extension of mineralised gossan intercepted in two holes
  • Anomalous results received include:
    • HRC 001: 1m @ 0.19% Cu, 230ppm Co, 0.14% Zn, 0.07ppm Au from 28m
    • HRC 022: 1m @ 0.74% Cu, 349ppm Co, 0.41% Zn, 0.14ppm Au from 83m
    • HRC 036: 1m @ 0.18% Cu, 0.12% Zn from 25m, 1m @ 0.27% Cu from 40m

Results from the first phase drilling program reported by FEL in ASX announcement February 10, 2020 were very encouraging with three holes positively identified to have intercepted down dip extensions of a surface gossan. The three identified holes showed anomalous intercepts spanning the full length of the 14 km strike.  In a cost saving measure, roughly half of the drilled samples were assayed in the lab where there was a logged record of visible quartz or sulphides in the samples. The remaining samples are now being analysed in the office using a portable XRF in case any anomalous samples were missed. If any are found, these will be sent to the lab for formal assay.

Once the results are received (lab and pXRF), the data will be interpreted using geochemistry to try to differentiate between different flows of basalt as a method of targeting possible sedimentary horizons deposited during volcanic hiatus. It is not yet clear whether outcropping and downhole mineralisation is the result of a volcano-stratigraphic massive sulphide deposit or a hydrothermal shear hosted depositional model.

FEL is planning a field trip in Q2 to conduct similar pXRF testing in the field ahead of further drilling or possible close spaced ground geophysics as well as follow up exploration of promising manganese outcrops in a neighbouring tenement.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=8918146685053128&qm_symbol=MMS

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
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.

 

Macarthur Minerals buoyed by share spike for major shareholder Cadence Minerals on iron ore deal – Proactive Investors

by John Miller. 

Macarthur is also encouraged by a robust iron ore market enhanced by low shipping rates and low oil prices.

Macarthur Minerals Limited (ASX:MIO) (CVE:MMS) remains focused on bringing to production its Western Australia iron ore projects, with the price of the key commodity remaining robust and largely unaffected by the COVID-19 pandemic.

While encouraged by the robust iron ore market, Macarthur is also buoyed by the performance this week of one of its largest shareholders Cadence Minerals PLC (LON:KDNC).

Cadence, an investment group that has a keen interest in opportunities in the iron ore sector, has this week doubled to GB 6.55p after the Amapá Iron Ore Project in Brazil received court approval to start iron ore shipments.

Shared iron ore vision

Macarthur and Cadence share the same vision of producing a high-grade, low-impurity iron ore concentrate and for this reason, Cadence has been a long-term corporate partner and investor in Macarthur.

Both companies are developing profitable and significant iron ore assets globally with Macarthur focused on the Lake Giles Iron Project in Western Australia.

The common ground extends beyond this vision with Cadence chairman Andrew Suckling also a non-executive director of Macarthur and chairman of the company’s Audit Committee.

Feasibility study progress

At Lake Giles, Macarthur is making strong progress on a feasibility study, focusing on the higher-value magnetite resource.

The location of Lake Giles with existing and planned logistics.

XRF assays and David Tube Recovery (DTR) analysis from infill drilling completed at the end of 2019 have confirmed significant intersections of magnetite mineralisation.

These results are being incorporated into an updated mineral resource model being prepared by CSA Global.

Detailed ‘route to market’ studies, including port and rail designs, are underway and remain a key priority as they will form the background of rail access, haulage and port contracts.

Tenders have also been called for metallurgical testing, process and infrastructure design, and mining studies to support a detailed feasibility study.

Large magnetite resource

Lake Giles mineral resources include the Moonshine magnetite resource and the Ularring hematite resource, which is approved for development.

Moonshine has an inferred magnetite resource of 710 million tonnes while Ularring has indicated resources of 54.5 million tonnes at 47.2% iron and inferred resources of 26 million tonnes at 45.4% iron.

Core samples from Lake Giles.

Macarthur’s executive chairman Cameron McCall said the company’s business case remained strong.

“Investor confidence across the board has taken a hit lately but we’re confident that the company is close to receiving a major shot in the arm on the back of an updated resource estimate and how we will get this to market.”

“Resolute” market fundamentals

He said: “On a macro-level, there are supportive market fundamentals that remain resolute; global steel production continues to rise and so does the demand for higher-grade, lower-impurity iron ore feedstock such as magnetite.

“While the prices of most major commodities are wilting in the face of the coronavirus, iron ore has been resilient with the benchmark 62% iron product hovering around a relatively robust $US90 per tonne, that’s up from $US72 in November last year.

“Lower oil prices, lower shipping rates as well as a declining Australian to US dollar should see a rapid rebalancing as all these variables impact positively on corporate returns.”

Ruling a key Amapá milestone

The Amapá ruling from the Commercial Court of São Paulo marks a key milestone for re-starting the Brazilian project.

This project is owned by DEV Mineração SA (DEV) in which Cadence can earn a 20 per cent stake.

Independent surveys of the iron ore stockpiles indicate that 1.39 million tonnes of iron ore in three stockpiles are available for immediate export with an average grade of 62.12% iron.

First shipment could be as early as the end of this quarter, but this depends upon the receipt of permits and any COVID-19 restrictions that may apply.

Cadence CEO Kiran Morzaria said: “For Cadence, this a significant step forward for the redevelopment of the fully integrated Amapá Iron Ore Project.

“We are truly entering the operational phase of the asset, and despite the current turbulent and volatile market conditions, the iron ore prices remain robust.

“Our chairman (Andrew Suckling) has previously referred to Amapá as a ‘company changing’ project for Cadence, and it is now on its way to deliver this goal.”

Low shipping rates

Macarthur and Cadence are also encouraged by low shipping rates due to the decreased supply of iron ore to market and this is enhanced by very low oil prices.

This will also have an impact on existing suppliers as the ongoing need for iron ore pushes up demand, particularly post-COVID-19.

Suckling said: “The ruling from Brazil’s São Paulo court marks a significant milestone for the re-opening of the Amapá iron ore project and its long-term benefits for stakeholders and the region.

“This ruling brings the Amapá project back to life.

“Despite the severe disruption created by COVID-19, management has remained focused on delivering the Amapá project as planned, supported by a robust iron ore market that continues to justify the opportunity.”

“On cusp of transformational change”

The importance of this deal has been recognised by prominent UK-based wealth management and corporate broking company WH Ireland Group PLC (LON:WHI) that states “Cadence is on the cusp of a transformational change”.

In a new research note on Cadence, WH Ireland states: “An easy to ship stockpile of 1.4Mt of 62% iron ore would sell for a current SPOT price of $84/t. Taking in re-handling and port costs (WHIe) of $10/t and ocean freight estimate of $30/t leaves an operating margin of nearly $45/t of iron ore shipped.”

This is “a healthy margin which could be used to pay senior bank creditors (once agreement has been reached) and complete a feasibility study into the reopening of the Amapá mine and pay for some of the new infrastructure required”.

Link here to view the original Proactive article

UK Investor Magazine – Cadence Minerals’ shares spike as “once in a lifetime” iron ore project receives approval

Since evolving from Rare Earth Minerals in early 2017, AIM listed Cadence Minerals (LON:KDNC) has offered investors a proposition largely based on investments into selected lithium and base metal projects around the globe.

Taking cornerstone stakes in projects such as the Cinovec Lithium and Tin Project in the Czech republic and Macarthur Minerals’ Lake Giles Iron Project in Western Australia has provided Cadence with opportunities to invest into acquiring assets directly.

The Company initially acquired lithium assets in Argentina and Australia, but when the iron ore supply squeeze in late 2018 threw up an opportunity to acquire the Amapá iron ore project in Brazil, Cadence management and its core investors jumped in with both feet.

Formerly owned by Anglo American (AAL) and Cliffs Natural Resources, the Amapá iron ore project is a large-scale iron open pit ore mine with associated rail, port and beneficiation facilities. Based in Northern Brazil close to the Atlantic, Amapá commenced operations in December 2007, and prior to its sale in 2012 due to a collapse in iron ore prices, Anglo American valued its 70% stake at $462m. Back then the mine was selling ore globally to Europe, USA and China.

With approx 1.4 million tonnes of iron ore stockpile sitting ready for shipment at the port, Cadence CEO Kiran Morzaria set up a joint venture company Pedra Branca Alliance Pte Ltd (PBA) with Singapore based commodities group IndoSino Pte Ltd to acquire DEV, the Amapá holding company.

A judicial restructuring plan submitted by PBA was approved, which saw Cadence, through PBA, acquire a 27% stake in the Amapá iron ore project for just $6m. And following extensive work with the judicial trustee and creditors committee, a landmark ruling was today delivered by the Commercial Court of São Paulo, approving the shipment of the iron ore stockpiles. The net proceeds of the iron ore sales will be used to pay labour and small creditors, and to bring the Amapá iron ore project back into production.

“Opportunities such as this come along once or twice in a lifetime,” says Morzaria. “To start a project on the scale of Amapá would require little short of $1bn capex. We (Cadence) will own 27% of a project, which when recommissioned should generate over $136m EBITDA per annum for at least 14 years, plus we will have the right and first refusal to acquire up to 49%.”

Rehabilitation of the mine, railway and port is expected to be completed by 2021, with first new production in 2022. A production ramp up will see 5.3 million tonnes of iron ore produced per annum by 2024.

More significantly, mine net revenues after shipping is forecast to be approximately $265m per annum, with EBITDA of approx $136m per annum based on a conservative iron ore price of $61 per tonne. Currently iron ore prices are around $84 per tonne.

Of course there is another benefit in rehabilitating the Amapá mine. The local economy will be rejuvenated, creating hundreds of jobs and employment opportunities, along with new funding for local schools and hospitals.

“Previously Amapá’s output amounted to a sizeable chunk of the local economy,” adds Morzaria.

“Bringing the mine back to life will provide a huge boost to the region.”

AIM listed Cadence currently trades on an asset backed market cap of just £7m. Given this, the opportunity and the numbers are hugely impressive and will be completely transformational once the mine is close to re-opening.

To echo Morzaria’s words, for a micro cap mining company, Amapá surely is a once in a lifetime opportunity.

Link here to read the original article

Cadence Minerals (KDNC) – Macarthur Minerals (TSX-V: MMS, ASX: MIO) seeks Venture Partner to further explore its nickel projects in Western Australia.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note today’s update from Macarthur Minerals (TSX-V: MMS, ASX: MIO) (“Macarthur”) on the potential for cobalt and nickel mineralisation at its Lake Giles Iron Ore Project in Western Australia, following recent rock chip sampling that coincided with the Company’s magnetite infill drilling.

In 2018, a rock chip sampling program across the Snark prospect discovered samples containing the cobalt mineral asbolite with assays returning up to 2.6% cobalt and 2.0% nickel.  In May 2018, a Moving Loop Electromagnetic (MLEM) geophysical survey was undertaken across the area that identified two compelling conductors coinciding with surface geochemical anomalies. In October 2019, the Company undertook further rock chip sampling confirming anomalous Nickel, Cobalt and Chromium grades that warrant further exploration.

Macarthur is currently focusing on its Lake Giles Iron Ore Project and is seeking a venture partner to further advance exploration of its nickel projects.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=7147043172086554&qm_symbol=MMS

Cameron McCall, President and Executive Chairman of Macarthur Minerals commented: 

“On the back of the Company’s initial exploration for nickel and base metals, the Company has undertaken a comprehensive review of its previous drilling and soil sample assays and targeted several areas for on-ground exploration. Recent exploration was successful in extending the anomalous nickel and cobalt rock samples along the extent of the bedrock conductor identified in mid-2018. The Company is now in the process of seeking a venture partner interested in furthering this opportunity at Lake Giles.”

Cadence Minerals Holding in Macarthur

Cadence holds approximately 4.1% 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.

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
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.

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