REG - Cadence Minerals PLC - Commencement of Shipment of Iron Ore from Amapa

Cadence MineralsAnnouncement

07/04/2022 10:00

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RNS Number : 6405H  Cadence Minerals PLC  07 April 2022

Cadence Minerals Plc

("Cadence Minerals", "Cadence" or "the Company")

 

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%.

- 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
 Darshan Patel

 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 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.

 

 

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