Cadence Minerals PLC said Aug. 30 that the company's judicial restructuring plan to recover and restart operations at DEV Mineração SA's Amapa iron ore project in Brazil submitted to the Sao Paulo Commercial Court was approved by over 90% of the credit value.
Cadence and IndoSino Pte. Ltd. will continue their work to secure all the operating and environment licenses required to operate the project, which will initially focus on the reinstatement of the railway concessions and finalizing negotiations with the secured bank creditors.
The company targets to start detailed recommissioning studies over the next four months, and start shipment of the stockpiles by the end of December.
In May, Cadence signed a nonbinding heads of terms with IndoSino to acquire up to 27% of the project, wherein Cadence must first invest US$2.5 million to earn an initial 20% interest, and may later on increase its stake to 27% by paying an additional US$3.5 million.
Once the conditions relating to the railway licenses and bank creditor arrangements have been met, the US$2.5 million initial investment placed in the judicial trust account will be released.
