Cadence Minerals upbeat on publication of Brazil court ruling

Cadence Minerals updated the market on its investment in the Amapa Iron Ore Project in Brazil on Friday, confirming that the court ruling it announced earlier in February had been published, and thus was now effective.

The AIM-traded firm had said on 10 February that the Sao Paulo Upper Court had rejected an appeal from secured bank creditors, thus annulling an interim order filed for by the bank creditors which was preventing the start of port operations and the shipment of iron ore stockpiles.

On Friday, it confirmed that DEV Mineração could now commence operations to ship sufficient iron ore to realise a $10m (£7.14m) profit from the Amapa stockpiles situated at its port, after the deductions of all logistical, regulatory, shipping and sale costs.

“Discussions continue between DEV, Cadence and Indo Sino, and the secured bank creditors, in relation to a final settlement agreement,” the Cadence board said in its statement.

“The execution of a final settlement agreement with the bank creditors would represent the satisfaction of Cadence's remaining major precondition to make its initial 20% investment in the Amapa Project.

“On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapá Project via our joint venture company, which will own 99.9% of DEV.”

At 0858 GMT, shares in Cadence Minerals were up 6.5% at 19.65p.