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Cadence Minerals #KDNC- Commencement of Shipment of Iron Ore from the Amapa Iron Ore Project, Brazil
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that DEV Mineração S.A (“DEV”) has restarted the sale and shipment of its iron ore stockpiles from Santana, Amapa, Brazil.
This shipment represents the first export of iron ore since Cadence vested its equity interest (27%) in the Amapa Iron Ore Project (“Amapa Project”) earlier this year. The shipments completed last year were approved via a court petition and were before our equity interest in the Amapa Project.
We expect that this shipment will complete this month, and under the current economic environment, DEV intends to continue with the shipment and sale of its 58% iron ore stockpile. There is currently circa 1.25 million tonnes of DEV stockpile at its port in Santana.
In addition to this shipment DEV has continued to provide ship loading and transport services for the third party owned stockpiles at DEV’s port.
About the Amapa Project
Amapa commenced operations in December 2007 with the first production of iron ore concentrate product of 712 kt in 2008. In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapa 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. During this period, Anglo American reported operating profits from its 70% ownership in the Amapa Project of US$ 120 million (100% US$ 171 million) and US$ 54 million (100% US$ 77 million). Before its sale in 2012, Anglo American valued its 70% stake in the Amapa Project at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million).
Cadence updated the Mineral Resource Estimate on November 2nd 2020, increasing the MRE by 21%. The current MRE contains a Mineral Resource of 176.7 million tonnes grading 39.7% Fe in the Indicated category and Mineral Resource of 8.7Mt at 36.9% in the Inferred category, both reported within an optimised pit shell and using a cut-off grade of 25% Fe.
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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For further information:
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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 Cadence Minerals Plc’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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.
Cadence Minerals #KDNC – Proposed Placing
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO . 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED (“UK MAR”) . UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN .
THIS ANNOUNCEMENT, INCLUDING THE APPENDIX TO THIS ANNOUNCEMENT, AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FORRELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.
THIS ANNOUNCEMENT, INCLUDING THE APPENDIX TO THIS ANNOUNCEMENT, IS FOR INFORMATION PURPOSES ONLY AND DOES NOT ITSELF CONSTITUTE AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY. THIS ANNOUNCEMENT AND THE APPENDIX DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES OF CADENCE MINERALS PLC IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.
THIS ANNOUNCEMENT SHOULD BE READ IN ITS ENTIRETY . IN PARTICULAR, YOU SHOULD READ AND UNDERSTAND THE INFORMATION PROVIDED IN THE APPENDIX WHICH CONTAINS THE TERMS AND CONDITIONS OF THE PLACING .
02 February 2022
Cadence Minerals Plc Proposed Placing
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that it has launched a placing (“Placing”), to raise approximately £3.5million through the Placing of new ordinary shares (“Placing Shares”) in the capital of the Company to new and existing investors at an issue price of 20.5 pence per share (“Placing Price”).
The Placing Price represents a discount of approximately 17.1 per cent. to the closing price of 24.75 pence per ordinary share on 1 February 2022, being the latest practicable business day prior to the publication of this Announcement.
The Placing is subject to the terms and conditions set out in the Appendix to this Announcement.
Cadence intends to use the net proceeds of the Placing to invest further in the Amapa Iron Ore Project (“Amapa Project” or “Amapa”) increasing its stake to 27 per cent., as announced on 29 December 2021. The funds invested in the Amapa Project will primarily be used to progress the pre-feasibility studies, the remaining net proceeds of the Placing will be used for Cadence to continue to pursue its investment strategy and for general working capital purposes.
Funding Details
The Company has entered into a placing agreement (“Placing Agreement”) with WH Ireland Limited (“WH Ireland”) pursuant to which terms WH Ireland agreed to arrange the Placing. The Company has given certain customary warranties and indemnities under the Placing Agreement in favour of WH Ireland. Completion of the Placing is subject to the satisfaction of the conditions contained in the Placing Agreement including, but not limited to, Admission.
Your attention is drawn to the detailed terms and conditions of the Placing set out in the Appendix to this Announcement (which forms part of this Announcement).
The Appendix to this Announcement contains the detailed terms and conditions of the Placing and the basis on which investors agree to participate in the Placing. The Placing has not been underwritten by WH Ireland. Placees are deemed to have read and understood this Announcement in its entirety, including the Appendix, and to have made their offer on the terms and subject to the conditions contained herein and to have given the representations, warranties, undertakings and acknowledgements contained in the Appendix to this Announcement.
The Placing Shares will be issued, credited as fully paid, and will rank pari passu with the existing Ordinary Shares in issue in the capital of the Company, including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such shares after the date of their issue.
The Company is mindful of its existing shareholders and wants to give shareholders the opportunity to invest on the same terms as those who have participated in the Placing. Consequently, the Company will shortly be sending a circular to shareholders setting out the terms of an open offer, which will allow existing qualifying shareholders the ability to subscribe for further shares at the Placing Price pro-rata to their existing holdings (the “Open Offer”) up to a maximum number of shares to be detailed in the circular.
Admission and Settlement
Application will be made for the admission to trading on the AIM market (“AIM”) of London Stock Exchange plc (“LSE”) and to the AQSE Growth Market (“AQSE”) operated by Aquis Stock Exchange Limited for the Placing Shares (“Admission”). Admission is expected to occur at 8.00 a.m. on or around 10 February 2022. There are no shares held in treasury.
About the Amapa Project
The Amapa Project commenced operations in December 2007 with the first production of iron ore concentrate product of 712 kt in 2008. In 2008, Anglo American (70%) and Cliffs (30%) acquired the Amapa 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. During this period, Anglo American reported operating profits from its 70% ownership in the Amapa Project of US$ 120 million (100% US$ 171 million) and US$ 54 million (100% US$ 77 million). Before its sale in 2012, Anglo American valued its 70% stake in the Amapa Project at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million).
DEV filed for judicial protection in August 2015 in Brazil, and mining ceased at the Amapa Project. A judicial order in early 2019 offered investors and creditors the opportunity to file a revised JRP. Cadence and Indo Sino filed a conditional JRP, which creditors approved in August 2019. Cadence, Indo Sino and DEV have continued to develop the Amapa Project and satisfy the conditions of the JRP.
Cadence updated the Mineral Resource Estimate on 2 November 2020, increasing the MRE by 21%. The current MRE contains a Mineral Resource of 176.7 million tonnes grading 39.7% Fe in the Indicated category and Mineral Resource of 8.7Mt at 36.9% in the Inferred category, both reported within an optimised pit shell and using a cut-off grade of 25% Fe.
Cadence Amapa Project Stake
As mentioned on 29 December 2021, the Company entered into a binding settlement agreement (“Settlement Agreement”) with the secured bank creditors of DEV Mineraço S.A. (“DEV”), the owner of the Amapa Project in Brazil. The execution of the Settlement Agreement represents the last major precondition for Cadence to vest its initial US$ 2.5m for 20% of the large-scale Amapa iron ore mine, beneficiation plant, railway and private port. Anglo American, a previous owner had valued its 70% stake in the Amapa Project at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million).
The parties to the agreement are now completing and filing the required contractual and regulatory documentation which will crystallise the Cadence and Indo Sino Trade Pte. Ltd. (“Indo Sino”) joint venture company’s 100% ownership of DEV and the Amapa Project.
The agreement with our joint venture partner, Indo Sino Pty Ltd, is to invest in and acquire up to 27% of a joint venture company Pedra Branca Alliance Pte. Ltd. (“JV Co”). On Completion and registration of the Settlement Agreement the equity of DEV will be transferred to the JV Co, at which point it will own 99.9% of the Amapa Project.
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.
For further information on the Company, please visit www.cadenceminerals.com or contact:
For further information:
Cadence Minerals plc |
+44 (0) 207 440 0647 |
Andrew Suckling |
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Kiran Morzaria |
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WH Ireland Limited (NOMAD & Broker) |
+44 (0) 207 220 1666 |
James Joyce / Darshan Patel |
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Harry Ansell / Daniel Bristowe |
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Novum Securities Limited (Joint Broker) |
+44 (0) 207 399 9400 |
Jon Belliss |
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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.
Link here for the full placing announcement and documents
Cadence Minerals #KDNC – Project Updates, Corporate Update and Company Presentation and Q&A
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to provide a series of project updates, and details of a new presentation and Q&A session.
Amapa Project
On 29 December 2021, Cadence announced the execution of the binding settlement agreement with the secured bank creditors, which allows us to vest our 20% interest in the large-scale Amapa iron ore mine, beneficiation plant, railway and private port (“Amapa Project”, “Amapa”).
We are pleased to announce that the completion and filing of the required contractual and regulatory documentation is proceeding as planned and we currently expect to finalise this in the first two weeks of next month.
Cadence has already begun work on the next investment phase to earn an additional 7% of Amapa for US$3.5 million. These funds will be primarily used to progress the pre-feasibility studies on the asset.
The pre-feasibility study (“PFS”) is progressing as expected, with the consulting engineers for the mine operations, ore reserve estimation, metallurgy, processing and shipping identified and in the process of being appointed. The rail logistic study has been completed in draft form, and is being reviewed.
In addition, to supplement the technical team at the Amapa, Tony Cau has been appointed as the pre-feasibility project director. Tony is a Civil Engineer with 40 years of global experience in the metals processing and engineering industry. Tony has worked for internationally recognised consulting and operational firms, including SNC-Lavalin, Bateman Engineering, BHP Billiton and Ausenco.
Litchfield and Picasso Projects
On 29 September 2021, Cadence announced that Castillo Copper (ASX/LON: CCZ) (“Castillo”) had entered into a 90-day option agreement with Lithium Technologies Pty Ltd (“LT”) and Lithium Supplies Pty Ltd (“LS”) in which Cadence owns a 31% shareholding, to acquire the Litchfield and Picasso Lithium Projects in the Northern Territory (NT) and Western Australia (WA) respectively.
LT and LS have informed us that the board of CCZ and LT & LS have mutually agreed to unwind the Option Agreement. As part of the break agreement terms, the A$50,000 deposit has been returned to CCZ.
Cadence CEO, Kiran Morzaria, commented: “On behalf of the board, I am pleased to advise shareholders that the filing of the contractual and regulatory documentation pertaining to the Amapa bank settlement agreement is proceeding as planned. Work has already started on the next investment phase to take Cadence up to 27% ownership of Amapa.
“I would also like to take this opportunity to welcome Tony Cau to the Amapa Project. Tony’s experience will be invaluable to us as Amapa undergoes recommissioning, and he joins the asset at an exciting phase of its development.”
“In regard to the Litchfield and Picasso option with Castillo, given the recent increases in lithium compound pricing to over US$40,000 per tonne of battery grade lithium carbonate, and the pending analysis of the assay results, we see the unwinding of this option agreement as an opportunity for Cadence to extract a higher valuation for these prospective assets”
Presentation and Q&A Session
Further to the announcement on the 5 January 2020, the online presentation and Q&A session is available here.
In addition, an updated PowerPoint presentation is available on the Company’ website, https://www.cadenceminerals.com/
Share Incentive Vesting
On the 2 November 2020, the Company announced that, under the share incentive plan established in September 2014, it had conditionally granted up to 240,000 Ordinary Shares to each of the directors. These share awards were conditional on meeting performance conditions during the award period (“2021 SIP Awards”). 2021 SIP Awards would be transferred from the Employee Benefit Trust (“EBT”), with no New Ordinary Shares being issued to satisfy the 2021 SIP Awards.
The award period ran from November 2020 to December 2021 (“Award Period”). The 2021 SIP Awards were subject to the board achieving performance conditions which were in line with market practice. One of the conditions was met by the end of 2021 entitling each director to be awarded 80,000 shares from EBT. With this award two of the three performance conditions were met during the period and no further awards will be made in relation 2021 SIP Awards. Once the shares have been transferred from the EBT to the board the Company will make a Director / PDMR disclosure.
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For further information:
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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 Cadence Minerals Plc’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 Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.
Cadence Minerals CEO Kiran Morzaria talks to Directors Talk about the huge significance of the first Amapa iron ore shipment
Cadence Minerals #KDNC CEO Kiran Morzaria talks to Directors Talk about the huge significance of the first Amapa iron ore shipment