Cadence Minerals Plc (LSE:KDNC) shares climbed around 10% on Tuesday, after Brazil’s Amapá state environmental authority granted a preliminary environmental licence for the Amapá Iron Ore Project.
The small-cap company announced the regulatory approval which it said confirms environmental feasibility for the mine’s full planned development.
Cadence noted that the licence covers the entire mine development envelope, including the Azteca processing plant, and supports progression toward refurbishment and production.
It said the approval applies to the full mine plan at 5.5 million tonnes per annum of direct reduction-grade iron ore concentrate, rather than an initial operating phase.
“The grant of the Preliminary Licence confirms environmental acceptance of the mine at its full intended scale and marks a decisive step forward in the project's redevelopment," chief executive Kiran Morzaria said in a statement.
He added the focus now turns to securing the Installation Licence and progressing refurbishment activities under a staged development strategy.
In London, Cadence shares gained 0.31p or 9.87% changing hands at 3.46p.