Shares of Cadence Minerals PLC (LON: KDNC) edged 15.15% higher after its Brazilian partner DEV Mineração S.A’s was allowed to start exporting iron ore stockpiles from the Amapa Iron Ore Project to realise up to $10 million in profit.
Brazil’s Upper Court rejected an appeal filed by Bank Creditors to stop DEZ from exporting the iron ore stockpiles stored at its fully-owned Santana, Amapa, Brazil port. Still, yesterday’s ruling allows DEV to restart export activities.
Cadence Minerals, a mineral resource investing company, is in the process of acquiring a 20% stake in DEV Mineração, which will give it a right to 20% of the profits realised by the miner after settling outstanding debts.
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The firm is waiting to execute a settlement agreement with the bank creditors, which will satisfy Cadence’s last major precondition to its first 20% investment in the Amapa Project.
Today’s announcement was the second major win for Cadence in as many days after its investee company Macarthur Minerals; yesterday signed an MoU with the Southern Ports Authority (SPA) to export its high-grade magnetite iron ore product through the Port of Esperance.
The MoU with the SPA is a concrete step towards Macarthur getting access to the Port of Esperance and completing a fully contracted route to market for its Lake Giles Iron Project.
The SPA has also approved the company’s Helix Dumper, and 300,000-tonne iron ore storage shed designs, which provide a new rail car unloading solution at the Port, which is a great opportunity for Macarthur and Cadence Minerals.
Investors cheered the development as evidenced by the stock’s rally today.
Cadence Minerals share price.
Cadence Minerals shares surged 15.15% to trade at 19p after rising from Tuesday’s closing price of 16.5p.