Cadence Minerals is closing in on a 20pc stake in Amapá iron project in Brazil.
DEV Mineração SA, the mine’s present owner, is nearing a settlement agreement with its secured bank creditors. Cadence, as well as its joint venture partner, Indo Sino Pte, have been negotiating with the creditors and have already tendered a settlement offer.
According to media reports, the joint venture’s settlement involves a discount on the amounts DEV owes.
Under the offer, Cadence and its joint venture will become a 20pc shareholder in Amapá and 100pc owner of DEV once the $2.5mn presently held in escrow is released. At that point, Cadence will pay $3.5mn to acquire the remaining 7pc interest.
The project—which is composed of a large iron ore mine, beneficiation plant, railway, and private port—was previously owned by Anglo America and Cliffs Natural Resources, the former of which valued its stake at $462mn in 2012.
Cadence successfully negotiated reinstatement of a line of mine railway concession last year, which has been hailed as a major development in its attempt to purchase the project.