Cadence Minerals have completed the first tranche of their investment in the Amapa Iron ore projects and secured a 20% interest in the asset.
Following a landmark restructuring agreement in December, Cadence Minerals have now completed all regulatory and contractual requirement and have confirmed they now own 20% of the joint venture that has a 100% interest in the Amapa Iron Ore Project.
Having conducted a heavily oversubscribed placing to raise £4.1m, Cadence Minerals are now focusing on the second phase of the investment and securing an additional 7% stake in the project for a consideration of $3.5m.
Indo Sino, Cadence Mineral’s joint venture partner, will have a twelve-month option to buy the shares in the JV held by Cadence for 1.5x the price paid by Cadence for the shares, if Cadence does not complete the investment.
“I am pleased to report that we have formally completed phase one of our investment into Amapa to acquire our initial 20 percent. Furthermore, our board are delighted that the recent fundraise to fund the second investment phase was oversubscribed. It is clear that our vision for Amapa is shared by new and existing shareholders alike given the high level of interest and participation in the fundraising,” said Cadence Minerals CEO, Kiran Morzaria.
“I look forward to reporting back to you on progress in the coming weeks.”