The company said there was now bank credit committee approval for the secured bank creditors to execute the settlement agreement.

"Cadence can then vest its initial 20% and eventually a further 7%, which in practical terms means we have a clear path and process to get Amapá recommissioned, licensed and back into production," CEO Kiran Morzaria said yesterday.

Cadence had agreed to acquire 27% of Amapa from Indo Sino in 2019. 

On the effective date of the settlement agreement, Cadence's and Indo Sino's joint venture company will own 99.9% of Amapa owner DEV Mineração.

The Amapa project consists of an integrated mine, processing plant, railway and privately owned port.

It was previously majority owned by Anglo American, produced 6.1 million tonnes of iron ore per annum and had been valued at US$660 million, Cadence said.

Cadence must invest $2.5 million to gain 20%, then $3.5 million for the further 7% interest in the JV company.

Amapa's resource comprises an indicated 176.7Mt grading 39.7% iron and an inferred 8.7Mt at 36.9%.

"As I have said previously, in my time working with commodity projects around the world, I have rarely if ever seen a lapsed mining project with this sort of potential," non-executive chairman Andrew Suckling said.

DEV was given permission in February to export $10 million worth of 58% beneficiated iron ore from stockpiles this year, then allowed in July to ship a further $10 million worth.

Cadence has said the net profit from the sale of the iron ore would be used primarily for commissioning studies, capital projects and working capital and 10% of the net profits would be reserved for payment against the amounts owed to the secured bank lenders.

The company also has stakes in the Yangibana rare earths project in Western Australia, the Sonora lithium project in Mexico and a circa 10% in European Metals Holdings which is progressing the Cinovec lithium/tin deposit in the Czech Republic.

Cadence shares (AIM: KDNC) have spanned 11.1-23.49p over the past year and closed up at 23.5p, valuing it at £25.8 million (US$35 million).