Eurasia Mining Share Discussion Threads

[johncasey] 21/5/2019 14:21

ADVFN WONT SHOW RNS FOR THIS BUT ON LSE..LENIGAS RECKONS ITS THE BIGGEST DEAL DONE FOR A LONG TIME



Heads of Terms - Iron Ore Mine, Amapá
Tue, 21st May 2019 12:30
RNS Number : 7234Z
Cadence Minerals PLC
21 May 2019
Cadence Minerals Plc

("Cadence Minerals", "Cadence" or "the Company")


Heads of Terms to Acquire Interest in former Anglo American Iron Ore Mine, Amapá, NE Brazil

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that it has entered into a non-binding Heads of Terms ("HOT") with IndoSino Pte Ltd. ("IndoSino") to invest in and acquire up to a 27% interest in the former Anglo American plc ("Anglo American") and Cliffs Natural Resources ("Cliffs") Amapá iron ore mine, beneficiation plant, railway and private port ("Amapá; Project") owned by DEV Mineração S.A. ("Amapá;").

The Amapá Project is a large-scale iron open pit ore mine with associated rail, port and beneficiation facilities and commenced operations in December 2007.Production increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012 respectively.

The HOT stipulates that Cadence, upon entering into a binding investment agreement, will have the right to acquire 27% of the Amapá Project by investing a total of US$6 million over two stages into a joint venture company, Pedra Branca Alliance Pte Ltd. ("PBA"). Cadence's investment is conditional, amongst other matters, on the approval of a judicial restructuring plan ("JRP") submitted by Cadence and IndoSino to the Sao Paulo Commercial Court in Brazil, the transfer of 99.9% of the issued share capital of Amapá to PBA and Cadence raising the required finance. Cadence is in discussions with potential strategic investors to fund all or part of this investment via equity.

Cadence is currently finalising the terms of the binding investment agreement, which is expected to be entered into shortly.

Highlights
• The Amapá Project is a large-scale open pit iron ore mine with associated rail, port and beneficiation facilities and is located in the Amapá state, north-east, Brazil.

• Prior to its sale in 2012 Anglo American valued its 70% stake in the Amapá Project at US$866 million (100% 1.2 billion) and after impairment valued it at US $462m in its 2012 Annual Report ( 100% US $600m) [1]

• During its operation the mine generated an annual operating profit of up to U$171 million (100%)[2].

• The total historic mineral resource contains an estimated 348 million tonnes ("Mt") of ore @ 38.9% iron content ("Fe")[3]

• The ore is beneficiated to 65% Fe Pellet Feed and 62% Fe Spiral Concentrate.

• Based on available historic mine plans and an independent consultant review it is expected that at full production the Amapá Project has a mine life of 14 years and at full capacity is targeting to produce up to 5.3 Mt of Iron Ore per annum.

• Initial revenue from the project is anticpated to start in Q4 2019 from the sale of the iron ore stockpile currently located at the Port of Santana , Brazil.

• Potential for the mine and existing infrastructure to be brought to market swiftly with mining and processing anticipated to restart in 2021 subject to the grant of the necessary permits, regulatory consents and project financing.

• Cadence is able to acquire a significant share of the mine (up to 27% of the issued share capital of PBA) for a staged equity investment of US$ 6 million and has a first right of refusal to acquire up to 49%.

• 65% Iron Ore (CFR) North China have increased from US$95.95 per dry metric tonne ("$/dmt") to US$111.90 / dmt since early September 2018 to the middle of May 2019[4]

Cadence Minerals CEO Kiran Morzaria commented:

"It is rare in our industry to be presented with an opportunity to put forward a relatively modest investment to participate in such a project that we believe provides us with a potentially transformative asset for our Company. The Amapá Project gives Cadence the potential for an exceptional ROI in the run up to full production and an opportunity to become a significant shareholder in a mid tier iron ore producer. "

"Our participation in the project has been ongoing for some 9 months, involving an extensive and comprehensive due diligence process. Through this we have gained a thorough understanding of the judicial restructuring process, and along with IndoSino, we have submitted the Judicial Restructuring Plan to the courts in Brazil"

"Given the nature of the asset the capital costs are estimated to be substantially lower than would be normally associated with developing a similar sized project from scratch. As the project restarts operations, it is hoped it can move rapidly forward to revenue generation by Q4 2019, and to see the mine fully operational in 2021."

"On behalf of myself and the Cadence team, we are wholly enthused by the opportunity the Amapá Project presents, and we are excited by the prospect of restarting mining operations.

[excellance] 21/5/2019 14:05

Lol

When the cats are away the mice will play!!

[pennstreet] 21/5/2019 14:01

Ok , someone's been tipped off, lol.

[book5] 21/5/2019 13:12

I believe The main inside Buyer is visiting London gardens :), he seems relax and committed

[cool hand kev] 21/5/2019 12:30

Well the presentation so far hasn't encouraged one buyer :-(

[book5] 21/5/2019 12:20

Exc

Certainly Good weather to visit London and perhaps enjoy some music in a Irish pub
Their wifes may also appreciate the quietness and freedom time to catch with friends and family

[charles clore] 21/5/2019 12:02

s that a troll I can hear squeaking pitifully in the background?

[aidenabettin] 21/5/2019 11:32

Posterity:.noun"the victims' names are recorded for posterity"synonyms:future generations, succeeding generations, those who come after us; the future"the names of those who died are recorded for posterity on a framed scroll"

[aidenabettin] 21/5/2019 11:30

All being filmed for posterity or blackmail?

[excellance] 21/5/2019 10:57

Oh I'm sure they are enjoying themselves book, I don't think their wives are with them...!!

Im/

[book5] 21/5/2019 10:19

Or buying design services (some good consultants in london)

[charles clore] 21/5/2019 10:11

Patnership or sales I would imagine as well as raising awareness in general.

[cool hand kev] 21/5/2019 10:07

I don't see the purpose of these presentations or are they raising more money?
"significant opportunity in London" What's that then?

[book5] 21/5/2019 09:42

Off topic: large Order of hydrogen trains in Germany is moving upwards the hydrogen counters

[excellance] 21/5/2019 09:26

Why is AB in London and not coordinating at WK?

Because WK is coordinated and producing, job done, but there is significant opportunity in London

[aidenabettin] 21/5/2019 09:11

The cost of doing the laundry needs to be paid for.Lots of washing being done here but it does not involve any ore

[book5] 21/5/2019 09:11

Even if assets prices in roubles have kept constant they will be losses due currency depreciation
Then add amortisation....

[abrahe00] 21/5/2019 09:05

Pot, kettle, black...

Check how many posts you and Book have written compared to me and then talk...

Do you not think it reasonable to want to know why we've spent almost a million dollars on "currency conversion"? Or, why at such a critical time, the lead project manager is prancing around in London rather than getting things done on-site?

[book5] 21/5/2019 09:03

Cc
As if we only listen to nonsense
They keep preaching in the desert
Look the graph instead...I tell them

[charles clore] 21/5/2019 09:01

Book - some contrarians are windbags and just love to see their name on the top of a post.

[book5] 21/5/2019 08:55

Seas going up even more rapidly than previously thought
Urgency is good for Hydrogen economy

[book5] 21/5/2019 08:52

Abra

Sell then? Market will take your sell

[book5] 21/5/2019 08:51

We have more wind than Germany

Lots of PGM will be required

[aidenabettin] 21/5/2019 08:51

Just another day in Russia.hTTps://www.znak.com/2019-05-20/v_orenburge_ubit_direktor_filiala_gazpromtrans_ego_supruga_i_lichnyy_voditel