Kiran Morzaria of Cadence Minerals discusses a big milestone achievement at the Amapa Iron Ore Project

Kiran Morzaria CEO of Cadence Minerals #KDNC discusses the execution of the settlement agreement and vesting of their initial $2.5m for 20% of the Amapa Iron Ore Project

Execution of Settlement Agreement and Vesting of Initial US$2.5m for 20% of the Amapa Iron Ore Project

Cadence Minerals is pleased to announce that it has entered into a binding settlement agreement with the secured bank creditors of DEV Mineração S.A., the owner of the Amapa iron ore project in Brazil. 

The execution of the Settlement Agreement represents the last major precondition for Cadence to vest its initial US$2.5m for 20% of the large-scale Amapa iron ore mine, beneficiation plant, railway and private port ("Amapa Project", "Amapa") . Anglo American, a previous owner  had  valued its 70% stake in the Amapa Project in [date]at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million).

Highlights:

·      Execution of the Settlement Agreement with the Secured Bank Creditors of the Amapa Project allows Cadence's (20%) and Indo Sino's (80%) joint venture to secure 100% ownership of the Amapa Project.

·      The restructuring of the secured and unsecured creditors achieved by this Settlement Agreement and the Judicial Restructuring Process ("JRP") has more than halved registered creditors balances.

·      Cadence has already commenced its next stage of investment in the Amapa Project to increase its stake to 27%. 

·      Pre-feasibilty studies are ongoing on the project

Next Steps

The parties to the agreement are now completing and filing the required contractual and regulatory documentation which will crystallise the Cadence and Indo Sino Trade Pte. Ltd. ("Indo Sino") joint venture company's 100% ownership of DEV and the Amapa Project.

Cadence has already begun work on the next investment phase to earn an additional 7% of Amapa for US$3.5 million. These funds will be primarily used to progress the pre-feasibility studies on the asset.