Cadence Minerals confirms sale and shipment of iron ore from Amapa Iron Ore Project

Highlights

• DEV has shipped and sold the fourth batch of iron ore from the stockpiles.
• The loading of the 48 492 wet t of iron ore sinter fines (approximately 58% Fe) at Companhia Docas de Santana (CDSA) was completed on the 23 April 2022.
• Iron Ore 62% Fe, CFR China at US$150/t (22/04/2022).
• Approximately 1.2 million t of iron ore is currently stockpiled in DEV's wholly-owned port.

DEV has shipped and sold the fourth batch of the iron ore from the stockpiles at Santana, Amapa, Brazil. The loading of the 48 492 iron ore sinter fines (approximately 58% Fe) at CDSA was completed on 23 April 2022, and the ship departed 24 April 2022. This shipment represents the first iron ore export since Cadence vested its equity interest (27%) in the Amapa Project earlier this year.

The first three shipments occurred in 1H21 and were approved via a court petition. The approved court petition limited the sales of the iron ore stockpiles to US$10 million of net profits (approved court disposal funds).

The approved court disposal funds were applied per the approved court petition, with DEV retaining a portion of the net profits. These net profits and the earnings from the current shipment will be paid to the secured banks creditors as per the settlement agreement announced on 29 December 2021.

Cadence owns 27% of the Amapa Project, with its joint venture (JV) partner, Indo Sino Pty Ltd, owning the remaining 73%. The ownership of Amapa is via a JV company, Pedra Branca Alliance Pte. Ltd. (JV Co.), which owns 100% of the equity of DEV Mineração S.A.. 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%.

Read the article online at: https://www.drybulkmagazine.com/shipping/27042022/cadence-minerals-confirms-sale-and-shipment-of-iron-ore-from-amapa-iron-ore-project/