Cadence Minerals (AIM:KDNC) said it continues to progress discussions with bank creditors as it nears completing its final stages of its investment into the Amapá iron ore project.
The AIM-listed investment firm entered into a binding investment agreement with Indo Sino in 2019 to invest in and acquire up to a 27% interest in the Amapá iron ore mine project which is located in Brazil and 100% owned by DEV Mineração S.A (DEV).
Cadence told investors that DEV and Indo Sino have continued ‘a constructive dialogue’ to reach a settlement agreement with the secured bank creditors, which remains the final precondition for Cadence to be able to make its initial investment in the Amapa Project.
On completion and on the release of the Cadence escrow monies, Cadence will become a 20% shareholder in Ampampa via its joint venture company which will own 99.9% of DEV.
Shares in Cadence Minerals have increased over the past three months and were trading 5.52% higher this morning at 9.75p.
"Our team has worked tirelessly to complete the final stages of our investment into the Amapá project,” said Kiran Morzaria, CEO of Cadence Minerals.
He added, “I am pleased that we have progressed our discussions with the Bank Creditors and we move ever closer to what will be a historic milestone for our company.
The COVID-19 crisis has impacted Brazil and the state of Amapa, and as such, the safety of our staff, colleagues and their families remains a top priority."
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.
For now, the JV partners continue to work with DEV to advance the restart of the Amapá Project using the proceeds of the iron ore, accelerating the production from the site.
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