Cadence Minerals plc said it intended to increase its stake from 27% to 30% in the Amapa iron ore project in Brazil.
FINANCE
The company added it would retain its first right of refusal to acquire 49% of the asset.
Cadence will earn the additional 3% through conversion of loans, capitalisation of management, consultancy, and administration, and cash investment for a total US$3.3 million.
The company’s total holding in Amapa will be for approximately US$9.3m.
LIFE OF MINE
Cadence added that the Amapa ore reserve estimate (ORE) was now complete and supported a planned 15-year mine life.
The JORC 2012 compliant statement and supporting disclosures will form part of the pre-feasibility study (PFS), on course for publication this quarter.
PROSPECTS
Chief executive Kiran Morzaria said that the company had taken several significant steps forward with its flagship Amapa project.
“The decision to convert loans and other costs into an increased stake in Amapa was almost a formality following successful completion of the ORE and the consequential progress with the PFS.
“With the steady increase in project value, your board are genuinely excited at the development prospects of Amapa.”