UK-based mining company Cadence Minerals has announced that it has taken a decisive step toward generating early cashflow at the Amapá Iron Ore Project in Brazil. Thanks to a $4.6 million prepayment funding agreement signed between Cadence, its partners in the Amapá Iron Ore Project and an international shipping and trading group, the company will restart the Azteca plant, refurbish its facilities and process high-grade tailings into iron ore concentrate. This move strengthens investor confidence and lays the foundation for the project’s ambitious long-term 5.5 million mt per year DR-grade expansion.
The total prepayment amount to be provided in two components:
- Azteca plant financing: $3.45 million for licensing, refurbishment and recommissioning.
- Working capital financing: $1.15 million to cover logistics for the first 50,000 mt shipment
Cadence will fund 10-15 percent of the investment but earn the same pro-rata economic returns. The Azteca plant is expected to be net cashflow positive from the very first shipment, generating reinvestment capacity for Amapá’s larger expansion phase.
Azteca plant capacity
The Azteca plant, located within Amapá, uses magnetic and spiral separation technology. Initial feedstock totals two million mt of high-grade Dyke 5 tailings (55 percent Fe), while output will be approximately 380,000 mt per year of 65 percent Fe concentrate post-refurbishment.
In the longer-term, Cadence plans to process the 28 million mt of historical tailings, expanding the resource base and supporting the larger 5.5 million mt DR-grade (67.5 percent Fe) project.
Cadence Minerals’ stake
As of June 2025, Cadence has invested $15.5 million, holding a 35.7 percent equity interest in Amapá.