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Cadence Minerals #KDNC – Update on the Amapa Iron Ore Stockpile Shipment

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on its investment in the Amapa Iron Ore Project (“Amapa Project”), Brazil.

Further to Cadence’s announcement on the 10 February 2021, we can confirm that the court ruling has been published and therefore it is now effective.

DEV Mineração S.A’s (“DEV”) can now commence operations to ship sufficient iron ore to realise a US$10 million profit from the Amapa stockpiles situated at its port (after the deductions of all logistical, regulatory, shipping and sale costs). We look forward to updating shareholders when operations recommence at the port.

Discussions continue between DEV, Cadence and Indo Sino Pty Ltd (“the Investors”) and the secured bank creditors (“Bank Creditors”) in relation to a final settlement agreement. The execution of a final settlement agreement with the Bank Creditors would represent the satisfaction of Cadence’s remaining major precondition to make its initial 20% investment in the Amapa Project. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapá Project via our joint venture company, which will own 99.9% of DEV.

– Ends –

 

For further information:

Cadence Minerals plc                                                    +44 (0) 7879 584153
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 – Update on Amapa Iron Ore Project Creditor Agreement & Court Petition to Commence Iron Ore Shipments

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on its investment in the Amapa Iron Ore Project (“Amapa Project”), Brazil. 

Settlement of Bank Creditors

In early September 2020, we announced that DEV Mineração S.A’s (“DEV”), Cadence and Indo Sino Pty Ltd (“the Investors”) agreed in principle to the settlement terms proposed by the secured bank creditors (“Bank Creditors”). Detailed discussions and drafting of the legal documents continue, and we look forward to updating the market once binding documents are executed.

The execution of a settlement agreement with the Bank Creditors would represent the satisfaction of Cadence’s remaining major precondition to make its initial 20% investment in the Amapa Project. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapá Project via our joint venture company, which will own 99.9% of DEV.

Update on Court Petition to Commence Iron Ore Shipments

In April 2020 Commercial Court of São Paulo (“the Court”) ruled that DEV., owner of the Amapa Project could commence the shipment of the iron ore stockpiles situated at DEV’s wholly owned port in Santana, Amapa, Brazil.

After this and as announced in August and September 2020, the Bank Creditors filed and had an interim order approved by the State of São Paulo Upper Court (“Upper Court”).  Yesterday the Upper Court rejected the Bank Creditors appeal (“the Ruling”), and once the Ruling is effective (up to one week from the date of publication), the interim order is annulled, and DEV’s original petition is valid. This will allow the recommencement of port operations and the shipment of iron ore stockpiles.

Details of Approved DEV Court Petition

DEV is permitted to export sufficient iron ore to realise a US$10 million profit from the Amapa stockpiles at the port (after the deductions of all logistical, regulatory, shipping and sale costs).

The first portion of the net revenues shall be used to pay historic small and employee creditors (~US$2.5 million) after which approximately US$ 6 million of the net revenues will be used to begin recommissioning studies on the Amapa Project and to start maintenance and monitoring of the current tailing dam facilities. The remaining net revenues with be used to provide working capital for the operations and for a payment against the outstanding amount due to the Bank Creditors.

A certified translation of the Upper Court ruling is available here.

Further announcements will be made concerning both the Settlement Agreement and the outcomes from the Ruling once available.

– Ends –

 

For further information:

Cadence Minerals plc

                                                   +44 (0) 7879 584153

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 – Updated Mineral Resource Estimate for the Amapa Iron Ore Project

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce the completion of the update of the Mineral Resource Estimate (“MRE”) in respect of its investment in the Amapá Iron Ore Project Brazil.

Highlights:

·    Mineral Resource of 176.7 million tonnes (“Mt”) grading 39.7% Fe in the Indicated category, reported within an optimised pit shell and using a cut-off grade of 25% Fe.

·    Mineral Resource of 8.7Mt at 36.9% in the Inferred category, reported within an optimised pit shell and using a cut-off grade of 25% Fe.

·    This Mineral Resource represents a 21% increase in total mineral resources compared to the equivalent MRE published by Anglo American 2012.

·    The MRE will form the basis of the mine planning studies within the scoping study, to support the operational plan to produce 4.4Mt of 65% Fe and 0.3 Mt of 62% Fe per annum. 

·    Significant potential exists to increase the resource base after the completion of metallurgical and optimisation studies on the surficial Colluvium and Canga and the underlying Semi Compact and Compact Itabirite material types.

Cadence CEO Kiran Morzaria commented:

“We are delighted that, following a significant effort from all involved, Cadence has been able to release an updated Mineral Resource Estimate for the Amapá Project. This significantly builds on our confidence in the economics identified during our internal desk studies and on-site due diligence.  The increase in overall mineral resource coupled with the historic operations and iron ore quality provides a robust platform on which to base our ongoing scoping study. 

We now look to the future with a palpable sense of excitement, and I would once again like to thank all parties involved in working so hard in the adverse conditions created by COVID to bring Amapá back to life. I look forward to reporting further developments.”

Further Information.

Baker Geological Services Ltd (“BGS”) was commissioned by Cadence to prepare a MRE and technical report on Dev Mineração S.A the Mineral Assets Dev Mineração S.A (“Dev”) comprising the Amapá Iron Ore Deposit (“Amapá” or the “Project”) located in Amapá State, Brazil. 

The MRE will now form the basis of mine planning and open-pit optimisation studies being carried out as part of our scoping study on the Amapá Project. Wardell Armstrong LLP (“Wardell Armstrong”) have been appointed to supervise and prepare the scoping study. As announced previously, the operational plan envisages that the mined material will be beneficiated into a 65% Fe Pellet Feed and 62% Spiral Concentrate at an average rate of 4.4Mt and 0.3Mt per annum.

At the time of writing, the Mining Rights to the Project are held by Dev. Dev is currently under a Judicial Restructuring Plan (“JRP”) which was approved by creditors in August 2019. Under the JRP, there are certain preconditions for Cadence to gain an equity stake in Dev. The remaining precondition outstanding is to reach a binding agreement with the secured bank creditors. After the latter is completed, Cadence will release its monies held in escrow and 99.9% of the equity of Dev will be transferred to a joint venture company Pedra Branca Alliance Pty. Ltd (“PBA”) jointly owned by Cadence (20%) and its joint venture partner IndoSino Pty. Ltd (“IndoSino”) (80%). Cadence’s next stage of investment will be a further investment of US$3.5 million on the grant of all operational and environmental licenses, at which point Cadence will own 27% of PBA. Cadence also has the first right of refusal to increase its stake to 49% in PBA.

Prior to this MRE, the most recent MRE on the Amapá Project was completed in 2012 by Anglo American. The MRE, with an effective date of 29 October 2020, has been reported in accordance with the Canadian National Instrument 43-101 (“NI 43-101”) Standards for Disclosure for Mineral projects. The estimation process followed the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) “Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines” (CIM, 2019). BGS employee, Mr Howard Baker takes Qualified Person (“QP”) responsibility for the MRE.

To determine the final Mineral Resource Statement, the model has been subjected to a pit optimisation exercise to determine the proportion of the material defined that has a reasonable prospect of economic extraction. This was undertaken by Wardell Armstrong International (“WAI”) with input from Cadence and BGS.

The Mineral Resource Statement generated by BGS has been restricted to the Indicated and Inferred Friable Haematite, Friable Itabirite and Friable Altered Itabirite material falling within an optimised pit shell and using a metal price of 130 USD/tonne for a 65% Fe concentrate. A cut-off grade of 25% Fe has been used for reporting material within the pit shell, this being the operational cut-off grade employed during mining operations. 

Using the above criteria, this represents the material which BGS considers has a reasonable prospect for eventual economic extraction potential.

The statements have been classified by Qualified Person, Howard Baker (FAusIMM(CP)) in accordance with the Guidelines of NI 43-101 and accompanying documents 43-101.F1 and 43-101.CP. The Amapá Mineral Resource Estimate has an effective date of 29 October 2020. 

The Amapá Project, at a cut-off grade of 25% Fe and reported within an optimised pit shell contains an Indicated Mineral Resource of 176.7 Mt grading 39.7% Fe, 30.0% SiO2, 6.2% Al2O3, 1.2% Mn and 0.17% P and an Inferred Mineral Resource of 8.7 Mt grading 36.9% Fe, 29.4% SiO2, 7.4% Al2O3, 1.63% Mn and 0.44% P (Table 1) 

Table 1:     Gross and attributable Amapá Mineral Resource Statement reported within an optimised pit and above a cut-off grade of 25% Fe 

ClassificationMaterialTonnesMillionsAttributable Tonnes (Millions) (6)Fe (%)SiO2(%)Al2O3(%)Mn (%)P (%)
IndicatedFriable Haematite0.60.1258.612.21.80.300.10
Friable Itabirite59.511.942.033.13.40.670.09
Friable Altered Itabirite116.523.338.428.57.71.470.21
Sub-Total 176.735.3239.730.06.21.200.17
InferredFriable Itabirite1.30.2640.438.02.70.290.05
Friable Altered Itabirite7.41.4836.327.98.21.870.51
Sub-Total 8.71.7436.929.47.41.630.44

Notes: 

(1) The Mineral Resource is considered to have reasonable prospects for eventual economic extraction.

(2) Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability. 

(3) Amapá has an effective date of 29 October 2020. 

(4) The Mineral Resource Estimate was constrained within lithological and grade based solids and within an optimised pit shell defined by the following assumptions; metal price of 130 USD/t of 65% Fe concentrate; iron recovery of 75.4% Fe, Processing costs of 3.67 USD/t dry feed and a mining cost of 1.61 USD/t rock.

(5) Mineral Resources have been classified according to the “CIM Standards on Mineral Resources and Reserves: Definitions and Guidelines (November 2019)” by Howard Baker (FAusIMM(CP)), an independent Qualified Person as defined in NI 43-101.

(6) The attributable tonnes represents the part of the Mineral Resource that will be attributable to Cadence Minerals on the vesting of its initial 20% in the Project, and is subject to the fulfilment of the conditions precedent in the court approved judicial restructuring plan. 

The open-pit optimisation shows a strip ratio of 1: 1.14 (ore tonnes: waste tonnes). 

BGS notes that the Mineral Resource has a reasonable prospect for eventual economic extraction but are not currently considered Mineral Reserves. Mineral Reserves are estimates of the tonnage and grade or quality of material contained in a Mineral Resource that can be economically mined and processed. To be considered a Mineral Reserve, modifying factors must be applied to the MRE as part of the preparation of a prefeasibility study or a feasibility study as outlined in the CIM Definition Standards. The estimated amount of saleable material contained in the final product must demonstrate a positive net present value using an appropriate discount rate and must demonstrate that eventual extraction could be reasonably justified. 

BGS are not aware of any factors (environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors) that have materially affected the Mineral Resource Estimate. 

The data used for the MRE update, including drill hole databases, topographic surveys and the previous 2012 Mineral Resource Model, was provided by Dev with the work undertaken by BGS taking place during the global COVID-19 Pandemic and as such, a site visit by BGS has not taken place as part of this update. That said, Howard Baker of BGS visited the Project in March 2015 and understands that no additional technical studies, including exploration drilling, have taken place since this date. At the time of the BGS site visit in 2015, the operation had been on care and maintenance for approximately 12 months. BGS did, however, undertake a full tour of the mine site, the core shed and discussed the Project with Dev personnel, Zamin Ferrous Ltd being the owners of the Project at the time of the site visit.

The Mineral Resource Statement has been limited to the Friable Hematite, Friable Itabirite and Friable Altered Itabirite material types. Historic mineral resources included Colluvium and Canga material within the resource statement, however, BGS noted that during its site visit in 2015 that neither material was being processed and all the material was being stockpiled, and as such both Colluvium and Canga material types have been excluded from the updated Mineral Resource Statement.  Similarly, no test work has been undertaken on the Semi Compact and Compact Itabirites, and it has not been demonstrated that a saleable concentrate can be generated from these material types.

Due to the lack of a recent site visit, it has not been possible to undertake any verification studies such as check sampling from the existing core, pit mapping or more detailed studies such as twin drilling and the acquisition of up to date topographic surveys. As such, all data has been taken on face value and verified where possible for obvious errors. All historical protocols have been accepted with the logging, assaying, and associated quality control studies included within this update, as per the previous 2012 Anglo American Mineral Resource Estimate. The 2012 Mineral Resource model has been reviewed by BGS as part of this study and following observations from the site visit in 2015 by BGS, an update to the Resource Model has been undertaken, using the data as supplied.

Data Quality and Quantity

Exploration at the Project commenced in January 2005 with drilling being carried out at various stages up until completion in August 2012.

BGS was supplied with the raw drill data (collars, geology, assay, and survey data) for the Project and generated a desurveyed drill hole file for analysis. In total, the drill hole file generated included 1,046 drill holes for a total of 76,575 m of drilling.

No validation or check sampling has taken place as part of this update with all QA/QC data restricted to that reported in the 2012 Anglo American Mineral Resource Estimation report. However, the processes put in place appear robust and follow standard industry practise and BGS opines that the results provide confidence that the data within the drill hole database is suitable for use in a MRE.

Figure 1: Distribution of drill holes and Fe assays

Geological Model

Iron mineralisation at the Amapá Project is hosted within a folded Banded Iron Formation (“BIF”) or itabirite that has been metamorphosed to Amphibolite grade. Granitic pegmatite intrusions crosscut the mineralisation that result in zones of hydrothermal alteration, and tropical weathering of the BIF has resulted in an iron formation of variable oxidation state and competency. The weathering process results in quartz being leached away, leaving an enriched itabirite.

Figure 2: Local geology of the Amapá Project, Itabirite unit (blue) showing synformal structure of the itabirite complex (blue).

Through an iterative process, the lithological logging codes were used to model the different material type / litho-geochemical domains with the domains being assessed through statistical checks. The statistical relationships observed, based on the modelling of the logging codes, shows that the itabirite system is well understood with the litho-geochemistry representing the logging applied. BGS acknowledges that the modelled lithology results in overlapping grade boundaries, but this is common in deposits with transitional weathering profiles.

The model was created by grouping all itabirite units to create an overall iron formation domain. The iron formation wireframe was then created by applying a trend to the interpretation to consider the overall dip/strike of the Amapá system. The iron formation wireframe was then cut by creating a pegmatite intrusive wireframe. 

Various litho-geochemical zones were then created within the iron formation wireframe using the same structural trend as that applied to the overall iron formation. The wireframes were created as a series of intrusives that cut against one another. This method was adopted due to the complex interaction between the differing units because of the weathering system.

Figure 3: Distribution of the key itabirite (HP, ITBF, ITAF, ITBB/ITAB, ITC) and alteration zones (RCB/RCBC, ZAH/ZAHC).

Finally, BGS created surface colluvium and canga domains along with the host mica-schist and amphibolite units.

Mineral Resource Estimate

The MRE was completed in Leapfrog Edge and Datamine Studio RM.  A composite file was used in a geostatistical study (variography and Quantitative Kriging Neighbourhood Analysis – “QKNA”) that enabled Ordinary Kriging (“OK”) to be used as the main interpolation method. The results of the variography and the QKNA were utilised to determine the most appropriate search parameters used in the grade estimate.

The interpolation used an elliptical search using orientation data from a structural trend used to guide the estimation through areas of fluctuating dip/strike. Grades of Fe, Al2O3, SiO2, P, LOI, CaO, MgO, Mn, P, and TiO2 were interpolated into the empty block model using OK and being based on the determined interpolation parameters and the results of geostatistical study. 

Post estimation processes calculated the Slope of Regression to enable an assessment of the quality of the estimate, and a dry density was applied to the model using the moisture content of the different lithologies.

The interpolated block model was validated through visual checks and a comparison of the mean input composite and output model grades. BGS is confident that the interpolated block grades are a reasonable reflection of the available sample data.

Mineral Resource Classification

Based on the work undertaken and the statistical validation steps carried out, BGS is confident that the geological model created honours the understanding of the local scale geology and weathering / alteration controlled grade distribution as accurately as possible given the current data available. 

It has not been possible to assess the validity of the QA/QC data presented during the 2012 MRE report. However, the processes put in place appear robust and follow standard industry practise and BGS opines that the results provide confidence that the data within the drillhole database are suitable for use in a MRE. It is however strongly recommended that a detailed sample verification programme be put in place, using existing core or pulps where possible along with a twin drilling campaign.

Density measurements have been taken on a wet basis with moisture being recorded that BGS has used to determine a dry density. BGS acknowledges that recording wet density is common practice in South America, although BGS does not consider this the industry norm. BGS strongly recommends that a density test work programme be introduced, using existing core samples or through in pit test pits.

The data used in the geostatistical analysis resulted in suitably reliable downhole variograms for all zones that allowed the nugget variance to be fixed with robust directional variograms being developed. 

QKNA studies were undertaken using the variograms, and suitable estimation parameters were selected through testing alternative sample support and search ellipse scenarios. The slope of regression was calculated, giving an indication of the quality of the estimated grade. Due to the level of sample support, the slope of regression values recorded were considered high and indicative of a good quality grade estimate.

BGS employed numerous validation techniques and is confident that the estimated block grades are a reasonable reflection of the input sample data. Visual and statistical checks showed that very little bias has been introduced.

The Project has been classified as containing Indicated and Inferred Mineral Resources and is primarily based on the quality of the grade estimate and degree of sample support. No Measured Mineral Resources have been assigned due to the lack of independent QA/QC and limited and reliable dry density data.

Figure 4 Amapá resource classification. Red=Inferred, Orange=Indicated

Resource Potential

BGS recognises an opportunity to assess the potential of the other iron-bearing domains logged and modelled as part of this update. This primarily includes the Semi Compact and Compact Itabirites along with the Canga and Colluvium that was previously included in the 2012 Mineral Resource Statement but has been excluded from this update.

It is recommended that metallurgical test work programmes on all iron-bearing material types are undertaken to assess the upgrade potential.

Canga and Colluvium material above a 25% Fe cut-off and within the optimised pit shell, but excluded from the Mineral Resource Statement totals 49 Mt of Colluvium grading 38.5% Fe, 21.5% SiO2, 12.4% Al2O3, 0.55% Mn and 0.16% P and 6.4 Mt of Canga grading 46.7% Fe, 10.7% SiO2, 11.2% Al2O3, 0.22% Mn and 0.47% P.

On a global basis, and not restricted to a pit shell or cut-off grade, BGS has modelled an additional 800 Mt of Indicated and Inferred Semi Compact and Compact Itabirite that lie predominantly below the existing Itabirite resource. This provides a significant opportunity should future metallurgical and optimisation test work show the material can be upgraded economically to a saleable concentrate.

Qualified Person

The information that relates to Mineral Resources is based on information compiled by Mr Howard Baker, who is a Chartered professional Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM(CP)) #224239. Mr Baker has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Qualified Person in accordance with NI 43-101. Mr Baker consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

Mr Baker of BGS is a resource geologist with 25 years’ experience covering multiple commodities from early-stage exploration through to definitive feasibility studies. Mr Baker is the Managing Director of BGS and previously worked for the International Mining Consultancy, SRK Consulting (UK) Ltd (“SRK”) where he was employed for eight years as a Principal Consultant and Practice Leader. In his time at SRK, he focussed on the management of Mineral Resource Estimates with a strong focus on technical quality management and compliance to international reporting codes. In addition, he played a key role in advising on suitable exploration protocols and drill programmes and effectively assisted clients in the development of numerous large-scale iron ore projects. Prior to his time at SRK, Mr Baker lived and worked in Australia, working for Rio Tinto, BHP Billiton, Iluka Resources and Anaconda Nickel

Mr Baker has extensive global experience in the geology and Mineral Resource Estimation of iron ore projects and worked as a mine geologist and specialist resource geologist in the iron ore Pilbara district of Western Australia.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

About the Amapá Project

The 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 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 USD 120 million (100% USD 171 million) and USD 54 million (100% USD 77 million).

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

Amapá filed for judicial protection in August 2015 in Brazil and mining ceased at the Amapá Project. A judicial order in early 2019 offered investors and creditors the opportunity to file a revised JRP. Cadence and IndoSino filed a conditional JRP which was approved by creditors in August 2019. Cadence, IndoSino and Dev have continued to develop the Project and satisfy the conditions of the JRP. Once the preconditions of the JRP are met, The Investors will own 99.9% of the Amapá Project (Initial ownership by Cadence of 20%).

Once the asset has vested into the Investors joint venture company, we intend to embark on the rehabilitation of the Project, including the completion of commissioning studies required of bank finance, shipping of the iron ore from the stockpile and eventually the restart of full operations.

The historic 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 for approximately 14 years.

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.

Glossary

Al2O3Aluminium oxide is a chemical compound of aluminium and oxygen 
AssayingThe chemical analysis of rock or ore samples to determine the proportions of metals 
Block modelA three-dimensional electronic model in which geological characteristics and qualities are housed.
CangaAn iron-rich rock formed where material weathered from an original iron ore deposit has been cemented by iron minerals.
ColluviumLoose, unconsolidated material that accumulates above the weathering iron ore bodies.
CoreA cylindrical section of a naturally occurring substance. Most core samples are obtained by drilling with special drills into the substance, such as sediment or rock, with a hollow steel tube, called a core drill. The hole made for the core sample is called the “core hole.”
Cut-off gradeThe lowest grade of mineralised material that qualifies as ore in a given deposit or rock of the lowest assay included in an ore estimate.
DipThe angle at which a bed, stratum, or vein is inclined from the horizontal, measured perpendicular to the strike and in the vertical plane.
Directional VariogramsDirectional variograms and semivariograms are commonly used where geologicalfeatures are heterogeneous. For example, fluvial environments dominated by valleys, channels and point bars are likely to have directional components that are detectable. Geostatistical models that use directional variograms can be expected to be more reliable in these circumstances.
Discount rateThe interest rate used in discounted cash flow analysis to determine the present value of future cash flows. 
DrillholeA drill hole formed by the act or process of drilling boreholes using bits s the rock-cutting tool. The bits are rotated by various types and sizes of mechanisms motivated by steam, internal-combustion, hydraulic, compressed air, or electric engines or motors.
FeChemical symbol for iron. It is a metal that belongs to the first transition series and group 8 of the periodic table. It is by mass the most common element on Earth, right in front of oxygen (32.1% and 30.1%, respectively), forming much of Earth’s outer and inner core. It is the fourth most common element in the Earth’s crust.
Feasibility studyThis study is the most detailed and will determine definitively whether to proceed with the project. A detailed feasibility study will be the basis for capital appropriation and will provide the budget figures for the Project. Detailed feasibility studies require a significant amount of formal engineering work, are accurate to within 10-15% and can cost between ½-1½% of the total estimated project cost. 
ItabiriteItabirite is a banded quartz hematite schist, very similar to banded iron formation in appearance and composition. Friable Itabirite is extensively weathered leading to disaggregation of the individual mineral grains comprising the rock;
HaematiteAn iron oxide mineral with the chemical formula Fe2O3;
GradeRelative quantity or the percentage of ore mineral or metal content in an ore body;
Indicated Mineral ResourcesThat part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade, and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drillholes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed;
Inferred Mineral ResourcesThat part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings, and drill holes which may be limited or of uncertain quality and reliability;
InterpolationEstimation of a statistical value from its mathematical or graphical position intermediate in a series of determined points;
KtThousand tonnes;
LithologiesThe lithology of a rock unit is a description of its physical characteristics visible at outcrop, in hand or core samples, or with low magnification microscopy. Physical characteristics include colour, texture, grain size, and composition;
Measured Mineral ResourcesThe part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade, and mineral content can be estimated with a high level of confidence.
Metallurgical test workThis is the process of testing of how the resource material will respond to standard metallurgical processes, such as flotation, gravity concentration and leaching. They are conducted on coarse assay reject material using standard test conditions. The objective is to determine how the resource material reacts to commonly accepted recovery processes and gain a preliminary estimate of metal recoveries.
Mine planningA plan or schedule of the extraction of ore to optimise the return (of profit) on investment, through capital investment, design, extraction scheduling, and preparation of the mineral product according to specifications.
Mineral ReservesThe economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined. Appropriate assessments and studies have been carried out and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social, and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves.
Mineral ResourceA concentration or occurrence of material of intrinsic economic interest in or on the Earth’s crust in such form, quality, and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics, and continuity of a Mineral Resource are known, estimated, or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.
Mn Chemical symbol for Manganese. It has an atomic number 25. It is not found as a free element in nature; it is often found in minerals in combination with iron
Implicit modelling Implicit modelling is generated by computer algorithms directly from a combination of measured data and user interpretation. The modelling requires a geologist’s insight, but this is made in the form of trends, stratigraphic sequences, and other geologically meaningful terms. This approach is faster, more flexible, and fundamentally better suited to modelling geology.
Modifying factorsThe term ‘modifying factors’ is defined to include mining, metallurgical, economic, marketing, legal, environmental, social and governmental considerations.
Net present valueThis is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyse the profitability of a projected investment or Project. 
Open pitAn excavation or cut made at the surface of the ground for the purpose of extracting ore and which is open to the surface for the duration of the mine’s life
Ordinary krigingIn the estimation of mineral resources by geostatistical methods, the use of a weighted, moving-average approach both to account for the estimated values of spatially distributed variables, and to assess the probable error associated with the estimates.
The chemical symbol for Phosphorus with atomic number 15.
Pellet feedIron ore fines used to produce pellets
Pit OptimisationA process whereby a series of optimised shells for open pits are generated each corresponding to a specific commodity price assumption.
Pit shellA design of aa open-pit obtained from the process of open-pit optimisation
Prefeasibility studyIs more detailed than a Scoping Stud. A Prefeasibility study is used in determining whether to proceed with a detailed feasibility study and as a “reality check” to determine areas within the Project that require more attention. Prefeasibility studies are done by factoring known unit costs and by estimating gross dimensions or quantities once conceptual or preliminary engineering and mine design has been completed. Prefeasibility studies have an accuracy within 20-30%.
QA/QCQuality Assurance and Quality Control programme to assess the quality and reliability of data collected and stored.
Quantitative Kriging Neighbourhood AnalysisA quantitative method of testing different estimation parameters (e.g. block size) and, by assessing their impact on the quality of the resultant estimate, select the optimal value for each parameter. This will be dependent on several factors within a deposit: the inherent variability, the ranges of grade continuity and the data spacing. 
Scoping studyAn order of magnitude study is an initial financial appraisal of a mineral resource. Depending on the size of the project, an order of magnitude study may be carried out. It will involve a preliminary mine plan and is the basis for determining whether to proceed with more detailed engineering work. Order-of-magnitude studies are developed by copying plans and factoring known costs from existing projects completed elsewhere and are accurate to within 40-50%;
SiO2Silicon dioxide, also known as silica, is an oxide of silicon most commonly found in nature as quartz and in various living organisms. In many parts of the world, silica is the major constituent of sand
Spiral concentrateIron Ore product produced from the beneficiation plant.
Strip RatioThis refers to the ratio of the volume of overburden (or waste material) required to be handled in order to extract some tonnage of ore.
StrikeThis is the direction of the line formed by the intersection of a fault, bed, or other planar feature and a horizontal plane. Strike indicates the attitude or position of linear structural features such as faults, beds, joints, and folds. 
tTonnes
Twin drillingThe drilling of holes near a previous drill hole it is a traditional technique used for verification of intersections of high-grade mineralisation, testing of historic data, or confirmation of drillhole data during geological due diligence studies.
ValidationAssessing the quality of block model estimates by comparison with raw assay data.

– Ends –

For further information:  
Cadence Minerals plc+44 (0) 7879 584153
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

[1] Anglo American Plc, Annual Report 2012: pp. 198.

Cadence Minerals #KDNC – Amapa Iron Ore Project – Update on Bank Creditor Settlement and Operational Progress

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on its investment in the Amapá Iron Ore Project (“Amapá Project”), Brazil.

Settlement of Bank Creditors

In early September this year, we announced that DEV Mineração S.A’s (“DEV”), Cadence and Indo Sino Pty Ltd (“the Investors”) agreed in principle to the settlement terms proposed by the secured bank creditors (“Bank Creditors”). The legal drafting of the settlement agreement and supporting documents continues, and we look forward to updating the market once these documents are executed.

The execution of a settlement agreement with the Bank Creditors would represent the satisfaction of the remaining major precondition for Cadence to make its initial 20% investment in the Amapá Project. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapá Project via our joint venture company, which will own 99.9% of DEV.

Operations

While work on the settlement agreement has been ongoing, operations have continued to progress at the Amapá Project. This work includes updating the assessment of mineral resources, advancing the scoping study, updating its mining rights and investigating the installation of an interim shipment facility outside the public port to increase the capacity associated with the shipment of the iron ore stockpiles.

As previously announced, there was a historic mineral resource published by Anglo American in 2012 which was prepared under the Australasian Code for Reporting of Exploration Resources and Ore Reserves 2004 edition; however, given the passage of time,  the investors needed to update the assessment of the mineral resources. 

We are pleased to report that despite the constraints of COVID-19, the Investors have been able to update the mineral resource under NI 43-101 a national instrument for the Standards of Disclosure for Mineral Projects within Canada[1]. A summary of the mineral resource is being announced today immediately after this announcement. The mineral resource will be utilised to generate an optimised pit and mine schedule, which will form part of the scoping study. 

The scoping study continues to advance. Alongside the preparation of the mine schedule, we will be preparing a condition and engineering study on the beneficiation plant and a review of the tailings storage facilities. The Investors have appointed Wardell Armstrong LLP (“Wardell Armstong”) to supervise and prepare the scoping study. We anticipate, subject to travel restrictions associated with COVID-19, to have the scoping study completed after we execute our final settlement with the Bank Creditors.

DEV has also continued to make progress with the Amapá Project. In particular, DEV is liaising with Agência Nacional de Mineração (“ANM”) in Brazil, to start updating its mining licenses, which is one of the precursors to obtaining the operational permits to begin mining and processing.

[1] National Instrument 43-101, Standards of Disclosure for Mineral Projects, together with Companion Policy 43-101CP and Form 43-101F1, was developed and released by the Canadian Securities Administrators (CSA) in 2001. National Instruments have legal status, an important point for companies also listed in the United States. Each of Canada’s 13 provincial/territorial securities regulators has adopted NI 43-101 and enforces compliance. Stock exchange listing rules require listed companies to comply with both listing rules and National Instruments. Market Regulation Services is a separate regulator in Canada, created when TSX became listed on its own stock exchange.

Additionally, DEV is investigating installation of an interim shipment facility for shipment of iron ore from the stockpiles to compliment the planned shipments from the public port. If successful, and once shipments have commenced this will allow DEV to increase the rate of iron ore stockpile shipments, providing a temporary solution while DEV’s private port is fully refurbished as part of the Amapá Project recommissioning process.

Non-Executive Chairman Andrew Suckling commented:

“On behalf of our board, I am delighted to report progress with the legal drafting of the settlement agreement with the Amapá bank creditors. Bringing Amapá out of administration and into the recommissioning phase is a complex and detailed process, and I would like to thank all those involved for their tireless efforts in making this happen, despite the severe restrictions imposed by COVID-19.” 

“The excellent developments on the operational front move us ever closer to bringing Amapá back to life, and along with the updated mineral resource statement, we see the value, both in the project and also on a macro level, the potential for prosperity and employment in the Amapá region, increase exponentially.”

Cadence CEO Kiran Morzaria commented:

“I have said on many occasions that putting together and executing a transaction to bring Amapá out of administration is a complex and protracted progress. Nonetheless, we have made excellent progress in bringing this previously abandoned iron ore mine back to life and towards completion of the first phase of our investment. Once made, this investment will mark a historic milestone for Cadence, and as our Chairman has pointed out, it will potentially transform the prospects for employment and prosperity in the region of Amapá. I look forward to updating the market on further progress.”

“I would also like to put on record my sincere thanks to the board and our team on the ground, who have worked tirelessly to bring us to this point amidst the unprecedented disruption created by COVID-19.”

– Ends –

For further information:

Cadence Minerals plc                                                   +44 (0) 7879 584153 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.

About Wardell Armstrong

Wardell Armstrong is a full-service technical mining consultancy with global expertise in the whole mine life cycle.  Wardell Armstrong has professionally qualified and experienced industry specialists including mineral resources, mining engineering, metallurgy and mineral processing, financial evaluation, and environmental and social experts with a proven record of delivering scoping, Preliminary Economic Assessments and feasibility level studies. 

Wardell Armstrong has been involved in multiple LSE main board and AIM listings as well as NI 43-101 Technical Reports in line with the TSX and Competent Person’s Reports in line with the ASX.  Wardell Armstrong has acted on behalf of numerous precious and base metal companies, as well as ferrous exploration and producing companies in West and Southern Africa, Russia and the CIS, South America and Greenland.

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.

Amapa Iron Ore Project – Cadence Minerals #KDNC Agrees In Principle To Settlement Terms Proposed By Amapa Bank Creditors.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on its investment in the Amapa Iron Ore Project (“Amapa Project”), Brazil.

DEV Mineração S.A’s (“DEV”), Cadence and Indo Sino Pty Ltd (“the Investors”) have agreed in principle to the settlement terms proposed by the secured bank creditors (“Bank Creditors”), and the administrator appointed to the Judicial Recovery Process (“JRP”) has asked the parties to prepare and submit the final contract so that the JRP parties can be informed.

Once a final contract has been finalised and executed, this will represent satisfaction of the remaining major precondition for Cadence to make its initial 20% investment in the Amapa Project. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapa Project via our joint venture company which will own 99.9% of DEV.

In addition to the above, and while the settlement contract is finalised, DEV and Investors have requested that the Bank Creditors and DEV submit a joint petition to the higher court to remove the Bank Creditors appeal and the subsequent interim order. As a result, operations at Amapa, including the shipping of iron ore stockpiles will be temporarily suspended while the petition is agreed, filed and approved.

Details of the settlement agreement will be disclosed once final contracts are executed.

Cadence CEO Kiran Morzaria commented: “On behalf of the Cadence board, I am delighted to confirm that our board has agreed in principle to a settlement proposed by the secured bank creditors of Amapa. We look forward to preparing and finalising the settlement contract for submission to the JRP administrator. While the resulting delay in operations at Amapa is frustrating, it is a necessary part of the legal process that once finalised, will see Cadence complete the first phase of our investment. This will mark an historic milestone for our company, the Amapa project and region. I look forward to updating the market on our progress in the coming weeks.”

“I would also like to put on record my sincere thanks to our people, who have worked tirelessly to bring us to this point amidst the unprecedented disruption created by COVID-19. We remain vigilant in ensuring that our employees, shareholders, contractors and their families continue to remain safe and secure.”

– Ends –

For further information:

Cadence Minerals plc                            +44 (0) 7879 584153
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 – Update on Investment in the Amapa Iron Ore Project, Brazil.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on its investment in the Amapa Iron Ore Project, Brazil.

Progress with Secured Bank Creditors

Since our last update in early August, DEV Mineraço S.A’s (“DEV”) Cadence and Indo Sino Pty Ltd (“the Investors”) have continued a constructive dialogue with the secured bank creditors (“Bank Creditors”) and the parties are currently negotiating the settlement terms as proposed by the Bank Creditors.

As mentioned in previous announcements, the remaining major precondition for Cadence to make its initial investment in the Amapa Project requires DEV to reach a settlement agreement with the Bank Creditors. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapa Iron Ore Project via our joint venture company which will own 99.9% of DEV Mineraço S.A’s (“DEV”).

Further details about Cadence’s rights, potential investment, and the Judicial Restructuring Plan in relation to the Amapa Project are presented in our annual accounts published at the end of June and the announcements of the 30 August 2019 and 7 August 2019.

Commercial Court of São Paulo (“the Court”)

On the 28 July, the Court, responding to an appeal by the Bank Creditors, reaffirmed its decision of April this year allowing DEV to commence shipping iron ore from the stockpiles situated at DEV’s wholly-owned port in Santana, Amapa. Cadence has been informed that the Bank Creditors have now filed an appeal to a higher court, none the less the original ruling still remains in force.

– Ends –

For further information:
Cadence Minerals plc
  +44 (0) 7879 584153
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 – Placing to Raise £1.25 million

Cadence Minerals (AIM/AQSE: KDNC; OTC: KDNCY) is pleased to announce that it has raised £1.25 million through the placing (“Placing“) of 10,416,662 new ordinary shares (“Placing Shares“) in the capital of the Company with new and existing investors at an issue price of 12pence per share (“Placing Price“), representing approximately 21.7% discount to closing mid-price on 19 August 2020.

Use of Proceeds

Cadence intends to use the net proceeds of the Placing for general working capital and to provide flexibility to the Company to repay loan notes from cash reserves rather than from its holdings in quoted investments. The outstanding balance on Cadence’s loan notes, which were announced on 15 June 2019 and 1 August 2019, is currently c. £1.7 million.

Operational Update

As announced on the 11 August, Companhia Docas de Santana (“CDSA”), a public (municipal) company and the port operator requested some additional non-statutory contractual requirements and undertakings. DEV has provided the requested documentation, and continues to liaise with the State of Amapa and SEMA (Secretaria de Estado de Meio Ambiente). Cadence understands that SEMA will provide the required documentation imminently. Cadence will provide an update once the first shipment is underway.

Funding Details

The Company entered into a placing agreement (“Placing Agreement“) with 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 agreed 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.

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 Exchange Plc for the Placing Shares (“Admission“). Admission is expected to occur on or around 27 August 2020. Following Admission, the Company will have 140,219,053 Ordinary Shares in issue. There are no shares held in treasury. The total voting rights in the Company is therefore 140,219,053 and Shareholders may use this figure as the denominator by which they are required to notify their interest in, or change to their interest in, the Company under the Disclosure Guidance and Transparency Rules.

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 / Matthew Chan 
Harry Ansell / Daniel Bristowe 
  
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 information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

Link here to view the full terms and conditions of the placing

Cadence Minerals #KDNC – Update on Investment into the Amapa Iron Ore Project, Brazil.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on its investment in the Amapa Iron Ore Project, Brazil.

Progress with Secured Bank Creditors

Since our last update in early July, DEV Mineração S.A’s (“DEV”) Cadence and Indo Sino Pty Ltd (“the Investors”) have continued a constructive dialogue with the secured bank creditors (“Bank Creditors”). The Bank Creditors have proposed settlement terms, and DEV and the Investors have agreed in principle (subject to contract) to key terms and have proposed some amendments. We will update the market once further progress has been made.

As mentioned in previous announcements, the remaining major precondition for Cadence to make its initial investment in the Amapa Project requires DEV to reach a settlement agreement with the Bank Creditors. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapa Iron Ore Project via our joint venture company which will own 99.9% of DEV Mineração S.A’s (“DEV”).

Further details about Cadence’s rights, potential investment, and the Judicial Restructuring Plan in relation to the Amapa Project are presented in the announcements of the 30 August 2019 and 7 August 2019.

Commercial Court of São Paulo (“the Court”)

On the 28 July, the Court, responding to an appeal by the Bank Creditors,  reaffirmed its decision allowing DEV to commence shipping iron from the stockpiles situated at DEV’s wholly-owned port in Santana, Amapa.

Operational Update

Companhia Docas de Santana (“CDSA”), a public (municipal) company and the port operator has asked for some additional non-statutory contractual requirements and undertakings; DEV has provided the requested documentation, and it is liaising with The State of Amapa whom will provide the necessary documents to CDSA. Cadence will provide an update once the first shipment is underway.

Cadence CEO Kiran Morzaria commented: “Our team have worked tirelessly to complete the final stages of our investment into the Amapá project. I am pleased that we now have an agreement in principle, and while there are some final amendments requiring ratification, we move ever closer to what will be an historic milestone for our company. The COVID crisis has of course impacted in Brazil and the state of Amapá, and as such the safety of our staff, colleagues and their families remains a top priority.”

About the Amapá Project

The Amapá Project was owned by Anglo American plc and Cliffs Natural Resources and consists of a large-scale iron ore mine, beneficiation plant, railway and private port.  In 2012 the operation produced 6.1 Mt of iron ore concentrate and reported operating profits from their 70% ownership in the Amapá Project of US$120 million (100% – US$171 million). Before its sale in 2012, Anglo American valued its 70% stake at US$462m in its 2012 Annual Report (100% – US$600m).

As previously announced, the total historical mineral resource contains an estimated 348 Mt of ore @ 38.9% iron content (“Fe”). The ore is beneficiated at the mine 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.

– Ends –

For further information:

Cadence Minerals plc +44 (0) 7879 584153
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 – 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 – Amapá Project Update

Further to the announcement made on the 16 June 2020, at this point, the commercial court of São Paulo has not made a ruling concerning DEV Mineraço S.A’s (“DEV”) petition to annul the secured creditors’ liens and charges over the Amapá Iron Ore Project (“Amapá Project”). The parties are in active discussions concerning a settlement, and we look forward to updating the market in due course.

Cadence Amapá Project stake

As mentioned in previous announcements there remains only one major precondition for Cadence to make its initial investment in the Amapá Project and release the sum currently held in escrow in a judicial trust account (“Escrow Monies”).

This precondition requires the owner of the Amapá Project (DEV), and the investors (Cadence and Indo Sino Pty Ltd) to reach a settlement agreement with the secured bank creditors. On satisfaction of the prerequisites and the release of the Escrow monies, Cadence will become a 20% shareholder in the Amapá Project via our joint venture company which will own 99.9% of DEV.

Cadence’s rights over the Amapá Project have been formalised in the Judicial Restructuring Plan of DEV and ratified by the São Paulo Bankruptcy court. Further detail concerning Cadence’s rights, potential investment and the Judicial Restructuring Plan are detailed in the announcements of the 7,8 of August and our year-end results published on the 26 June 2020. 

About the Project

The Amapá Project was owned by Anglo American plc and Cliffs Natural Resources and consists of a large-scale iron ore mine, beneficiation plant, railway and private port.  In 2012 the operation produced 6.1 Mt of iron ore concentrate and reported operating profits from their 70% ownership in the Amapá Project of US$120 million (100% – US$171 million). Before its sale in 2012, Anglo American valued its 70% stake at US$462m in its 2012 Annual Report (100% – US$600m).

As previously announced, the total historical mineral resource contains an estimated 348 Mt of ore @ 38.9% iron content (“Fe”). The ore is beneficiated at the mine 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.

– 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

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