Cadence Minerals plc reported the completion of the pre-feasibility study (PFS) for the Amapá iron ore joint venture (JV) project in northeast Brazil.
JV STRUCTURE
Amapá is one of Cadence’s three investment projects in which it owns 27% of the JV company Pedra Branca Alliance (PBA) along with IndoSino (73%).
PBA owns 100% equity of DEV Mineraço S.A. which in turn owns Amapá.
Cadence said it expects results of the PFS in early 2023.
PENDING APPROVALS
The company’s other investment projects cover lithium and rare earth elements in Northern and Western Australia.
In July 2022, the company sold its 31.5% stake in Lithium Technologies and Lithium Supplies (LT & LS) to Evergreen Lithium Pty Ltd.
The terms of the sale included an initial AS$3.16 million (£1.77m) in Evergreen shares, with a further AS$6.63m (£3.72m) due in Evergreen equity on achievement of certain performance milestones.
“Although Evergreen had expected a listing on the Australian Stock Exchange to occur this calendar year, it is still awaiting final regulatory approval,” said Cadence in a statement today.
Cadence is also awaiting state approval for the transfer of mineral licences in its third investment project of Yangibana in Gascoyne, Western Australia.
In June 2022, the company sold its working interests and tenements to Hastings Technology Metals for A$9m (£5.1m), satisfied by the issue of fully paid ordinary Hastings shares.
All other pre-conditions of the sale have been satisfied.
Cadence’s 30% interest in tenements covers a small portion of the Yangibana project which the company said potentially represented one year of the 16-year mine life.