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Cadence Minerals (KDNC) Share Price Surges On Bank Credit Committee Approval for Amapa Project

Updated: 11 Oct 2021

Cadence Minerals (LON: KDNC) shares are the biggest gainer in London on Monday following news that it has acquired credit approval for the Amapa Project settlement agreement.

The news paves the way for Cadence to vest an initial 20% in the Amapa Iron Ore Project.

Cadence's and Indo Sino's joint venture company will own 99.9% of the Amapa Project. Cadence has an agreement in place to acquire up to 27% of the joint venture company.

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The Amapa Iron Ore Project consists of an integrated mine, processing plant, railway, and privately owned port. It was previously owned by Anglo American and produced 6.1 million tonnes of iron ore per year and was valued at $660 million.

The current Mineral Resource of the Amapa Project consists of 176.7 million tonnes grading 39.7% iron.

The approval of the settlement agreement remains subject to the completion of a KYC (know your client) and the finalisation of documentation.

Cadence CEO, Kiran Morzaria, commented: After a long and protracted process, I am delighted to be able to announce to you that we have now received Credit Committee Approval for the secured bank creditors to execute the Settlement Agreement. 

“Cadence can then vest its initial 20% and eventually a further 7%, which in practical terms means we have a clear path and process to get Amapá recommissioned, licensed and back into production.”

The news has seen Cadence Minerals shares rocket higher. Its stock price is up 42% so far on Monday, trading at 24.9p, adding to its year-to-date gains.

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