Shipment company

Cadence Minerals Confirms Sale and Shipment of Iron Ore from Amapa Iron Ore Project

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Cadence Minerals announced that DEV Mineração SA has completed the sale and shipment of iron ore from the Amapa Iron Ore project.

Strong points

  • DEV shipped and sold the fourth batch of iron ore from stockpiles.
  • The loading of the 48,492 wet t of iron ore sinter fines (about 58% Fe) at the Companhia Docas de Santana (CDSA) was completed on April 23, 2022.
  • Iron ore 62% Fe, CFR China at 150 USD/t (22/04/2022).
  • Around 1.2 million tonnes of iron ore are currently stored in the port which is 100% owned by DEV.

DEV has shipped and sold the fourth batch of iron ore from stockpiles in Santana, Amapa, Brazil. Loading of the 48,492 sintered iron ore fines (approximately 58% Fe) to CDSA was completed on April 23, 2022 and the vessel departed on April 24, 2022. This shipment represents the first export of iron ore since Cadence acquired its stake (27%) in the Amapa project earlier this year.

The first three expeditions took place in 1H21 and were approved via a court petition. The court-approved motion limited sales of the iron ore stockpiles to $10 million in net profits (court-approved disposal funds).

Approved court disposition funds have been applied in accordance with court petition approved, with DEV retaining part of the net profits. These net profits and proceeds from the pending expedition will be paid to secured bank creditors pursuant to the settlement agreement announced on December 29, 2021.

Cadence owns 27% of the Amapa project, with its joint venture (JV) partner, Indo Sino Pty Ltd, owning the remaining 73%. Ownership of Amapa is through a JV company, Pedra Branca Alliance Pte. ltd. (JV Co.), which holds 100% of the capital of DEV Mineração SA. If Indo Sino seeks other investors or an investment in the JV Co, Cadence has a first right of refusal to increase its stake to 49%.

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