Further to the announcement made on the 7 April 2022, Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that DEV Mineração S.A’s (“DEV”) has completed the sale and shipment of Iron Ore from the Amapa Iron Ore Project (“Amapa Project”).
- DEV has shipped and sold the fourth batch of iron ore from the stockpiles.
- The loading of the 48,492 wet tonnes of iron ore sinter fines (approx. 58% Fe) at Companhia Docas de Santana (“CDSA”) was completed on the 23 April
- Iron Ore 62% Fe, CFR China at US$150 per tonne (22/04/2022)
- Approximately 1.2 Mt of iron ore is currently stockpiled in DEV’s wholly-owned port
DEV has shipped and sold the fourth batch of the iron ore from the stockpiles at Santana, Amapa, Brazil. The loading of the 48,492 iron ore sinter fines (approx. 58% Fe) at CDSA was completed on 23 April, and the ship departed yesterday, 24 April. This shipment represents the first iron ore export since Cadence vested its equity interest (27%) in the Amapa Project earlier this year.
The first three shipments occurred in the first half of last year and were approved via a court petition (“Approved Court Petition”). Details of the Approved Court Petition can be found here. The Approved Court Petition limited the sales of the iron ore stockpiles to US$10 million of net profits (“Approved Court Disposal Funds”).
The Approved Court Disposal Funds were applied per the Approved Court Petition, with DEV retaining a portion of the net profits. These net profits and the earnings from the current shipment will be paid to the Secured Banks Creditors as per the settlement agreement announced on 29/12/2021.
Details of Ownership and Joint Venture Agreement
Cadence owns 27% of the Amapa Project, with our joint venture partner, Indo Sino Pty Ltd (“Indo Sino”), owning the remaining 73%. The ownership of Amapa is via a joint venture company, Pedra Branca Alliance Pte. Ltd. (“JV Co”), which owns 100% of the equity of DEV Mineração S.A. (“DEV”). Should Indo Sino seek further investors or an investment in the JV Co, Cadence has a first right of refusal to increase its stake to 49%.
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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.
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 information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014