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07 Jun 2019 | 07:59

Cadence Minerals reaches agrees with Indo Sino to invest $6m in Amapa project

Cadence Minerals reached agreement with Indo Sino to invest in and acquire up to a 27% stake in the Amapá project for $6m.

The project, which included an iron ore mine, beneficiation plant, railway and private port owned by DEV Amapá, would be operated through the joint venture company Pedra Branca Alliance.

To acquire its 27% interest, Cadence would invest $6m over two stages in joint venture: $2.5m for a 20% stake, and $3.5m for a 7% stake. 'If Cadence is unable to complete the second stage of the investment or not exercise its right of first refusal under the terms of the Agreement, Indo Sino will have a twelve-month option to buy the shares in JV Co held by Cadence for 1.5 (1 ½) times the price paid by Cadence for such shares,' the company said. Included as part of the agreement, Cadence would either receive cash from join venture or additional shares, but its stake in the joint venture is limited to 49.9%.

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