Corporate Update

Cadence Minerals Plc

("Cadence Minerals", "Cadence" or "the Company")

Corporate Update

Cadence Minerals (AIM/NEX: KDNC) is pleased to provide a corporate update covering the development on the Amapá Iron Ore Project and a restructuring of the Company's loan notes.

Amapá Iron Ore Project Update

Cadence announced on the 7 June that it had entered into a binding investment agreement  with Indo Sino Pte. Ltd. ("Indo Sino") to invest in and acquire up to a 27% interest in the former Anglo American plc and Cliffs Natural Resource Amapá iron ore mine, beneficiation plant, railway and private port ("Amapá Project") owned by DEV Mineração S.A. ("Amapá"). 

As previously announced Cadence's investment is conditional, amongst other matters, on the approval of a judicial restructuring plan ("JRP") submitted by Cadence and Indo Sino to the Sao Paulo Commercial Court in Brazil and the transfer of 99.9% of the issued share capital of Amapá to the Cadence and Indo Sino joint venture company ("JVCo").

Cadence is pleased to confirm that it has placed US$2.5 million into a judicial trust account of the commercial court of São Paulo. These funds will be held in escrow until the preconditions of the JRP are met, which include the approval of the JRP at a creditors meeting, and the grant of key operational licenses. We currently anticipate that the creditors meeting will occur at the end of August.

Once all the JRP preconditions are met (which mirror the preconditions in our investment agreement with Indo Sino) the US$2.5 million will be released and Cadence will own 20% of the Amapá Project.

In anticipation of the approval of the JRP and completion of the preconditions the JVCo is starting several key workstreams, including updating the mineral resource to current standards, beneficiation plant and mine plan reviews and a preliminary economic study amongst others. We look forward to reporting on these over the coming months.

Further information on the project is available in the Company's announcement on 21 May 2019

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/KDNC/14082106.html

Further information on the binding investment agreement is available in the Company's announcement on the 7 June 2019

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/KDNC/14102294.html

Restructuring of Loan Notes

Cadence announced on the 24 November 2018 that it had refinanced its outstanding loan notes by entering into a US$4.87 million amortising loan note with a consortium of institutional lenders, which was due to be fully repaid on the 1 December 2019 ("Amortising Loan Note"). At the date of publication, the outstanding principle balance of the Amortising Loan Note is US$2.23 million.

Cadence has completed the restructure of two of the three outstanding loan notes with the same consortium of institutional lenders. The two new loan notes will repay US$ 1.19 million of the Amortising Loan Note and have been restructured as a convertible loan note with an exercise price of 0.12 pence and will attract an effective annual interest rate of 7.9% ("Convertible Loan Note")

Cadence will initially only pay the interest on the Convertible Loan Note until the 1 January 2020, after which 50% of the outstanding balance will be paid back over 8 months (1 August 2020). The outstanding 50% will be paid back on 1 September 2020.

In addition, and to, in part, fund the working capital requirements of the Amapá Project, as outlined above, Cadence has drawn down a further US$ 1.25 million of the Convertible Loan Note under the same terms. After this draw down the outstanding balance on the Convertible Loan Note US$2.44 million. The note is secured over the Company's assets.

The Company is finalising terms to fund the balance of the Amortising Loan Note, which is anticipated to be on the same terms of the Convertible Loan Note announced today.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

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