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DEV Mineração S.A receives approval for export of iron ore

Published by , Assistant Editor
Dry Bulk,

Cadence Minerals has announced that DEV Mineração S.A has been permitted to export a further US$10 million (after the deductions of all logistical, regulatory, shipping, and sale costs) of iron ore from its stockpiles situated at its port in Santana, Amapa, Brazil (Second Permission). This authority is in addition to the first permission granted to DEV on 10 February 2021, in which it was permitted to ship an initial US$10 million, net of costs, of iron ore (First Permission).

In August, DEV is scheduled to complete its fourth and last shipment under the First Permission; the four shipments of 58% beneficiated iron ore has netted approximately US$10 million to DEV. On completion, DEV will begin the shipments to fulfil the Second Permission.

The net profit from the sale of the iron ore will be used primarily for commissioning studies, capital projects, and working capital. As per the First Permission, 10% of the net profits will be reserved for payment against the amounts owed to the secured bank lenders (Bank Creditors).

Cadence interest in the Amapa Iron Project

In early September 2020, the company announced that DEV Mineração S.A's (DEV), 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 approval.

The execution of a settlement agreement with the Bank Creditors would represent the satisfaction of Cadence's remaining major precondition 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 its joint venture company, which will own 99.9% of DEV.

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