RNS Number : 8296G
Cadence Minerals PLC
29 July 2021
Cadence Minerals Plc
('Cadence Minerals', 'Cadence' or 'the Company')
Positive Operational Progress at the Amapa Iron Ore Project
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
announce that DEV Mineração S.A ('DEV') has delivered positive
operational progress at the Amapa Iron Ore Project ('Amapa').
-- Pre-feasibility Studies ('PFS') have commenced on the rehabilitation of:
-- The beneficiation and processing plant
-- The railway and associated infrastructure between Pedra Branca and DEV's port at Santana
-- Working alongside Companhia Docas de Santana ('CDSA'), DEV
has, for the first time, been able to load a full vessel at Pier 2
-- The Jack-Up rig at the Santana port is currently being righted and recovered.
-- Continued maintenance of the tailings dams and the start of
work required by ANM ( Agência Nacional de Mineração ).
As previously announced on 10 February 2021 and on 27 July 2021,
the Commercial Court of São Paulo ('the Court') ruled that DEV
could export sufficient iron ore to realise a total US$20 million
profit from the Amapa stockpiles(US$ 10 million was permitted on
each separate occasion). A portion of these funds is being used to
redevelop Amapa, including commissioning studies, capital projects
and working capital. DEV, working alongside Cadence and Indo Sino
Pty Ltd, has been progressing with the redevelopment of Amapa in
several key areas.
DEV has appointed IDG Engenharia E Consultoria LTDA ('IDG') to
carry out the engineering and conditioning study on the
beneficiation and processing plant at the Amapa mine. IDG is a
Brazilian ISO approved engineering and consulting company with a
broad range of experience in the sector, having worked for Vale,
Arcelor Mittal, Kinross, London Mining and Anglo American. They
also have specific expertise at the Amapa mine, having consulted on
the project previously.
In addition to the engineering and conditioning study, IDG will
review the power supply options for the mine and plant,
particularly the possibility of connecting to the grid network,
enabling the mine and the plant to be predominantly powered by
lower-cost renewable energy.
DEV has appointed Technicontrol Consultoria E Etrinamento
Empresarial Ltda ('Technicontrol') to carry out the PFS work on the
railway. Technicontrol has mobilised to Amapa and will begin
inspecting some 193km of rail and associated infrastructure, which
transverse across the state of Amapa from Pedra Branca to DEV's
port at Santana. Techincontrol will also review and cost the
locomotive and rolling stock requirements for the mine.
Technicontrol also has previous experience with the Amapa
Both of these studies, once complete, will form part of the PFS.
In the coming months, we expect DEV to appoint a consulting and
engineering firm to start work on the port studies and conduct a
geotechnical investigation of the mine.
Increased Iron Ore Loading Capacity at CDSA, Amapa
Working with CDSA, DEV has established and tested a process at
CDSA's port in Santana to load a vessel (45,000 ton) with iron ore
at Pier 2 from berth-side. This operation was the first of its kind
and was carried out early last week, and this resulted in a
historical event at CDSA when two vessels were loaded at piers 1
and 2 with iron ore simultaneously
DEV carried out this trial operation by loading ore owned by a
third party. The shipment of this ore is part of the judicial
recovery process approved by the creditors in July 2019 and was
carried out at a commercial rate. With this increased capacity, DEV
will ship its stockpiles at a faster rate than previously
DEV is scheduled to complete its fourth and last shipment under
the court judgment granted earlier this year in August. The four
shipments of 58% beneficiated iron ore have netted approximately
US$10 million to DEV. After this fourth shipment, DEV will begin
shipments to fulfil the second court judgment, as announced on 26
As part of the port reconstruction carried out after the Amapa
port collapse in 2013, a jack-up iron ore loading platform was
partially installed. In subsequent years, the platform began to
list and partially sank due to a lack of funds and maintenance;
however, DEV has been committed to securing and recovering the
jack-up platform and, to that end, has engaged a marine engineering
firm that began work in July to refloat the platform. At the time
of writing, one of the platforms has been partially refloated, and
the recovery is progressing well.
As previously announced, DEV began tailing dam maintenance
earlier in the year. DEV has now employed a civil engineer and two
geotechnical consulting firms to advance the work programme,
including monitoring, geotechnical stability testing and compliance
with statutory reporting. The end goal is to ensure that the
current dams will be suitable for future operations amid Brazil's
more stringent regulatory environment.
Cadence CEO Kiran Morzaria commented , 'On behalf of the Cadence
Board, I am pleased to report solid operational progress at Amapa
in regard to recommissioning work at the mine, port and railway.
The ongoing sales from our iron ore stockpiles are providing
sufficient funding to complete the PFS, along with some of the work
required to bring the complete operation back to life.'
'We remain enthused by the opportunities and possibilities that
a fully recommissioned Amapa mine will deliver , and I am delighted
to see local contractors and companies already engaged with us to
make it happen .'
'I look forward to reporting further progress to you in the
coming weeks and months'.
Cadence Interest in the Amapa Iron Project
In early September 2020, we announced that DEV Mineração S.A's
('DEV') and Cadence and Indo Sino Pty Ltd ('the investors') agreed
in principle to the settlement terms proposed by the bank
creditors. The principal commercial terms agreed in 2020 have not
varied materially, and at the time of writing, the final settlement
is currently with the bank creditors for comment and/or
The execution of a settlement agreement with the bank creditors
would satisfy Cadence's remaining major precondition, which is 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
WH Ireland Limited (NOMAD
& Broker) +44 (0) 207 220 1666
Novum Securities Limited
(Joint Broker) +44 (0) 207 399 9400
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, as well as an MBA (Finance) from CASS Business School.
Certain statements in this announcement are or may be deemed to
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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 in terms of operations performance,
future capital, other expenditures (amount, nature, funding
sources, etc.), competitive advantages and business prospects and
opportunities. Such forward-looking statements re ect the
directors' current beliefs and assumptions based on information
currently available to them. 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 changes and other regulatory changes made
by governmental authorities, the availability of capital markets'
reliance on key personnel, uninsured and underinsured losses and
other factors that are beyond the control of the company. Although
any forward-looking statements in this announcement are based on
what the directors believe to be reasonable assumptions, the
company cannot assure investors that actual results will be
consistent with them.
The information contained within this announcement is deemed by
the company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
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(END) Dow Jones Newswires
July 29, 2021 02:00 ET (06:00 GMT)
Cadence Minerals (LSE:KDNC)
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