Cadence Minerals (AIM:KDNC)  said it has agreed in principle to settlement terms proposed by the secured bank creditors in regard to its investment in the Amapa Iron Ore Project. 

The reaching of a settlement remains the final precondition for Cadence to be able to make its initial investment in the Amapa Project in Brazil and effectively become a 20% interest holder. 

The Judicial Recovery Process has now asked the parties - which includes partners DEV and Indo Sino - to prepare and submit the final contract so that the JRP parties can be informed. 

Once a final contract has been finalised and executed, this will represent satisfaction of the remaining major precondition for Cadence to make its initial investment in the Amapa Project. 

On completion of this and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the project via its joint venture company which will own 99.9% of DEV. 

Shares in Cadence Minerals have improved from lows of 8.88p last month and were trading 8.16% higher at 13.25p on Wednesday following this morning’s announcement. 

DEV and the investors have requested that the Bank Creditors and DEV submit a joint petition to the higher court to remove the Bank Creditors appeal and the subsequent interim order.  

As a result, operations at Amapa, including the shipping of iron ore stockpiles will be temporarily suspended while the petition is agreed, filed and approved, the group noted. 

Details of the settlement agreement will be disclosed once final contracts are executed. 

Commenting on the proposed settlement terms, Cadence’s Chief Executive Kiran Morzaria, said, “This will mark an historic milestone for our company, the Amapa project and region.” 

“While the resulting delay in operations at Amapa is frustrating, it is a necessary part of the legal process that once finalised, will see Cadence complete the first phase of our investment.” 

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.  

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