Cadence Minerals (KDNC) has received a further key regulatory approval in regard to the licensing process which is focused on bringing the Amapa project back into production.

Today, the AIM-listed mineral explorer said it has received the approval of the change of control request for the federal port concession which is owned by DEV Mineração S.A.'s.

Today’s news follows a previous regulatory requirement that was fulfilled back in December 2019 whereby the life of mine railway concession was reinstated by the State of Amapa. 

The Company told investors that both these approvals represent two essential regulatory requirements over the critical infrastructure to operate the integrated Amapa Iron Ore Mine.

DEV, Cadence and Indo Sino Pte. Ltd. have been liaising with the Agencia Nacional De Transportes Aquaviarios to approve the Port  Change of Control. The federal port concession is one of the licenses required to operate DEV's privately owned port in Santana, Amapa.

The Group explained that the approved Port Change of Control will occur once the firm’s and Indo Sino's joint venture company Pedra Branca Alliance Pte. Ltd. is the 99.9% owner of DEV.

As part of the Port Change of Control, ANTAQ has agreed to cease the recommended abrogation of the port concession. In addition, DEV has agreed to pay the outstanding fines of approximately US$267,000 to ANTAQ, 30 days after our JV Co takes control of DEV.

DEV ownership will pass to the JV Co once DEV, Cadence and Indo Sino have executed the settlement agreement with the secured bank creditors. Meanwhile, Cadence said DEV continues to progress the licensing workstream across the multiple regulatory authorities.

Cadence noted that the approval of the change of control request represents ‘a significant step’ forward in the licensing process to bring the Amapa project back into production.

Commenting on the approval, Cadence’s CEO, Kiran Morzaria, said: "The Port Concession marks another significant step along the road to bring the Amapa Project back to life. 

Licensing and permitting often represent a substantial risk in the development of mineral projects, but thanks to the efforts of the team at DEV and its advisors, we have successfully secured two key concessions critical to the operational success of the Amapa project."

On a recent site visit to Amapa, Morzaria said he had witnessed “rapid progress” on the ground which he said was driven by “a highly motivated local management team and staff.”

Earlier this month, shares in Cadence Minerals jumped after it announced a landmark deal which will pave the way for the Company to vest an initial 20% in the Amapa Iron Ore Project.

In September 2020, DEV, Cadence and Indo Sino Pty agreed in principle to the settlement terms proposed by secured bank creditors.     Cadence outlined that this would need to be executed to satisfy a remaining major precondition, thereby allowing it to make an investment. 

It said the approval will assist in paving the way for Cadence to vest this initial 20% indirect interest in Amapa, a project consisting of an integrated mine, processing plant, railway, and privately owned port. The project, previously owned by Anglo American, has produced 6.1m tonnes of iron ore per annum, and was valued by Anglo American at US$660 million.

Non-Executive Chairman, Andrew Suckling, said the news is “a landmark for Amapa,” both in terms of certainty for DEV employees, the wider Amapa community and for its shareholders.

While awaiting credit committee approval, the drafting of the final settlement documents have continued to progress. On the effective date of the  Settlement Agreement and under the Judicial Restructuring Plan Cadence and Indo Sino Trade Pte Ltd (Indo Sino), via their joint venture company, will own 99.9% of DEV Mineração S.A., the owner of the Amapa Project.

To date, Cadence, alongside its partners at Amapa, Indo Sino Pte Ltd ("Indo Sino") and DEV, have completed an updated mineral resource statement increasing the total mineral resources by 21%. It is now advancing towards completing a pre-feasibility study at Amapa.    

Follow News & Updates from Cadence Minerals: