26th Aug 2020 10:57
(Alliance News) - Cadence Minerals PLC on Wednesday said it is still waiting on DEV Mineracao SA to come to an agreement with its creditors but added that dialogue as been "constructive".
DEV Mineracao reaching a deal with its lenders is the final barrier to Cadence taking a 20% stake in the Amapa iron ore project in Brazil, through a joint-venture company which will own just shy of 100% of DEV Mineracao.
"Since our last update in early August, DEV Mineracao SA, Cadence and Indo Sino Pty Ltdhave continued a constructive dialogue with the secured bank creditors and the parties are currently negotiating the settlement terms as proposed by the bank creditors," Cadence said.
"As mentioned in previous announcements, the remaining major precondition for Cadence to make its initial investment in the Amapa project requires DEV to reach a settlement agreement with the bank creditors."
Also on Wednesday, Cadence noted its joint-venture partner at the Australian Yangibana rare earth project Hastings Technology Metals has received commitments to raise AUD14.6 million, about USD10.5 million. A further AUD3.1 million will be raised through a conditional placement and another AUD3.0 million via an underwritten share purchase plan.
Cadence Chief Executive Officer Kiran Morzaria said: "We are pleased to note that strong interest in Hastings Technology Metals and the Yangibana project has resulted in an oversubscribed placing. These funds, along with the prospect of commencement of mine construction next year provide a positive read-over into the value and future potential of our joint venture with Hastings. We look forward to further developments."
Shares in Cadence were 6.8% lower at 11.98 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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