TIDMKDNC
RNS Number : 5810R
Cadence Minerals PLC
30 October 2023
Cadence Minerals Plc
("Cadence Minerals", "Cadence", or "the Company")
Strategic Development and Financing MOU Signed for the Amapa
Iron Ore Project
Increase in Cadence Amapa Project Equity Stake
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
announce that our joint venture company Pedra and Branca Alliance
("PBA") and DEV Mineração S.A. ("DEV") have entered into a
memorandum of understanding ("MOU") with Sinoma Tianjin Cement
Industry Design & Research Institute Co., Ltd. a wholly owned
subsidiary of Sinoma International Engineering Co., Ltd. ("TCIDR").
Through its wholly owned subsidiary, DEV, PBA owns and operates the
Amapa Iron Ore Project in Brazil ("Amapá Project").
The MOU is the result of our ongoing discussions between the
parties to progress the development of the Amapá Project
jointly.
Development Programme
Under the MOU, TCIDR will provide a final proposal to complete
the Definitive Feasibility Study ("DFS"), and on completion of a
successful DFS, will submit a fixed price Engineering Procurement
and Construction ("EPC") contract for the Amapá Project. The DFS,
EPC contact and any other services provided by TCIDR are subject to
both the services being provided on a competitive basis and to
PBA's and DEV's commercial evaluation and approval. TCIDR will be
appointed the General EPC contractor for the Amapá Project once
these approvals have been granted and the provision of
TCIDR-facilitated project financing is secured. This will require
the execution of legally binding documents.
Project Financing
Under the MOU, TCIDR will use its best commercial efforts to
secure the required financing for the construction and
re-development of the Amapá Project, including the necessary
guarantees, project finance insurance and debt financing. In this
regard, TCIDR is in discussion with SinoSure China Export &
Credit Insurance Corporation and China Development Bank.
PBA, DEV and TCIDR will now develop a roadmap to seek to secure
the financing for the DFS and subsequent project financing for the
Amapá Project, and a fixed price EPC contract between DEV and TCIDR
that will have the project finance, export credit insurance and
credit support by TCIDR.
Cadence Increase in Ownership in the Amapá Project
Up to the end of September 2023, Cadence's total investment in
the Amapá Project stood at approximately US$12.1 million; as a
result, Cadence's equity stake in the project has increased to
32.6%.
Cadence Chairman Andrew Suckling commented: "This Cadence
Minerals management team, of which I am proud to be part, have
worked tirelessly with PBA and DEV, local Government and
contractors to bring Amapá to this point. Investments of this
nature are rarely straightforward, but our management and
shareholders are now starting to see a tangible return from
bringing this large and complex infrastructure back to life. Along
with Kiran, I have witnessed firsthand the rejuvenating effect the
recommissioning process has had on the region and community, and
now, with this MOU, there is a real sense that we can re-develop
this project back to its name plate capacity.
Cadence CEO Kiran Morzaria added: "From a strategic standpoint,
for Cadence and PBA, the MOU with TCIDR represents a potential
one-stop shop solution, coupling our requirements for final project
funding with engineering, construction and technical expertise.
Following this, our next steps will be the completion of the
remaining optimisation studies followed by the DFS."
"Our investment to date has resulted in an increased
shareholding, which now stands at 32.6%, and I am both pleased and
proud that having first submitted a judicial restructuring plan to
creditors in 2019, we are now making rapid progress. I and my
colleagues look forward to the completion and recommissioning of
this substantial project."
About the Amapá Iron Ore Project
The Amapá Project is a brownfield integrated iron ore project in
the Amapá State of Brazil. It has Mineral Resources of 276 million
tonnes (Mt) at 38.33% Iron (Fe) and Ore Reserves of 196 Mt at
39.34%. The project consists of the mine, processing plant, wholly
owned port and a 194km railway, all of which will be operated by
DEV. A Pre-Feasibility Study ("PFS") was published in January 2023.
The PFS delivered a Post-tax Net Present Value of US$949 million
("M") at a discount rate of 10% and a post-tax Internal Rate of
Return of 34%, with an average annual life of mine EBITDA of US$235
M annually. After ramp-up, the planned yearly average production
will be 5.7 million wet metric tonnes per annum ("Mtpa") of Fe
concentrate, consisting of 4.7 Mtpa at 65.4% Fe and 1 Mtpa at 62%
Fe concentrate.
About Sinoma Tianjin Cement Industry Design & Research
Institute Co., Ltd
TCIDR is a wholly owned subsiduairy of SINOMA International
Engineering Co., Ltd. ("SINOMA International") is the technology
and engineering platform under the Fortune Global 500 Group - China
National Building Material Group Co., Ltd. It is also the world's
leading service provider for cement technology, equipment and
engineering system integration, a high-tech and technological
innovation demonstration enterprise of China, as well as one of the
"Going Global" benchmarking enterprises recognized by the
State-owned Assets Supervision and Administration Commission of the
State Council.
In 2001, SINOMA International was established by integrating the
quality assets of China's cement technology, equipment and
engineering business. In 2005, it was listed on the Shanghai Stock
Exchange (600970 SH). Through technology import, assimilation, and
independent innovation, the company has developed and built a
series of production lines starting from China's first production
line with a daily output of 1,000 tons to the world's largest
production line with a daily output of 14,000 tons.
Over the past 20 years, SINOMA International has positioned
itself as an "innovative, international and value-oriented"
company, SINOMA International has so far won contracts for nearly
300 cement productions lines in more than 80 countries .
For further information contact:
Cadence Minerals plc +44 (0) 20 3582 6636
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD
& Broker) +44 (0) 20 7220 1666
James Joyce
Darshan Patel
Fortified Securities - Joint
Broker +44 (0) 20 3411 7773
Guy Wheatley
Brand Communications +44 (0) 7976 431608
Public & Investor Relations
Alan Green
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.
Cautionary and Forward-Looking Statements
Certain statements in this announcement are or may be deemed to
be forward-looking statements. Forward-looking statements are
identi ed 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 re ect 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 as stipulated under
the Market Abuse Regulation (E.U.) No. 596/2014, as it forms part
of U.K. domestic law under the European Union (Withdrawal) Act
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