By Christian Moess Laursen
Shares in Cadence Minerals surged 29% after it said its joint-venture company Pedra and Branca Alliance has signed a preliminary deal with Sinoma Tianjin Cement Industry Design & Research Institute to advance the development of the iron ore project in Brazil.
At 0913 GMT, shares are up 1.40 pence at 6.25 pence.
The mining company said Monday that Sinoma Tianjin Cement Industry Design & Research Institute, or Sinoma TCIDR, will help secure financing for the construction and development of the project.
In addition, the wholly-owned subsidiary of Sinoma International Engineering will provide a final proposal to complete the definitive feasibility study, and will submit an engineering procurement and construction contract for the Amapa project when the study is complete.
A definitive feasibility study is the final piece of the financing puzzle for mining companies, and its results serve as the basis for a final decision.
Pedra and Branca Alliance has entered the preliminary deal with its wholly-owned subsidiary DEV Mineracao, a company that owns and operates the Brazilian iron ore project, in which Cadence has as 32.6% stake.
“From a strategic standpoint, for Cadence and Pedra and Branca Alliance, the memorandum of understanding with Sinoma TCIDR represents a potential one-stop shop solution, coupling our requirements for final project funding with engineering, construction and technical expertise,” Chief Executive Kiran Morzaria said.
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