RE: RE: Lenigas21 Apr 2020 08:49
Hill Dickinson advises AIM-listed Cadence Minerals Plc on investment into Amapa project, its £1.6m Placing and the restructuring of existing convertible loan notes
Hill Dickinson has recently advised AIM-listed client Cadence Minerals PLC (KDNC) on its joint venture with Indo Sino Pte Ltd for KDNC to invest in and acquire up to a 27% interest in the former Anglo American Plc and Cliffs Natural Resources Amapá iron ore mine, beneficiation plant, railway and private port (Amapá Project) owned by DEV Mineração S.A.
Hill Dickinson worked with KDNC and local counsel in Brazil to carry out due diligence and the structuring of the judicial review process to establish the investment opportunity for KDNC to invest into the Amapá Project (the Investment). Further details of the Investment can be found here.
To facilitate the capital investment of US $2.5 million for the Amapá Project as detailed in the judicial review process, Hill Dickinson worked with KDNC, WH Ireland (as nomad for KDNC and appointed broker) and Bird and Bird (as legal advisors to WH Ireland) to close a £1.6 million placing (the Placing). Further details of the terms of the Placing can be found here.
The net proceeds of the Placing will be used to fund the working capital for the US $2.5 million cash advance for the Amapá Project.
In addition to the Placing, to generate further working capital for the Investment, Hill Dickinson advised KDNC on the refinancing of its outstanding loan notes previously entered into for a US $4.87 million amortising loan note with a consortium of institutional lenders, which were due to be fully repaid on the 1 December 2019. Further details of the terms of the refinance can be found here.
The mission statement of KDNC is to operate as an early investment strategy and development firm, within the mineral resource sector. Its target is to identify undervalued assets with irreplaceable strategic advantages.
Mark Wheeler, a legal director at Hill Dickinson commented: ‘The Amapá Project is a fantastic opportunity for Cadence and the Placing evidences the support for the company to deliver on the Investment. Working alongside Kiran Morzaria and the other directors of Cadence we are very pleased that we could help deliver the various cross-jurisdictional elements and challenges making up the Investment and Placing.’
Also commenting on the Investment and Placing, Kiran Morzaria, chief executive officer of KDNC said: ‘We are delighted, through the Placing, to have secured the remaining funding requirement for the Investment into the Amapá Project. The Amapá Project gives Cadence the potential for an exceptional ROI in the run up to full production and an opportunity to become a significant shareholder in a mid-tier iron ore producer. We have worked with Hill Dickinson throughout on this project and Cadence has been greatly assisted by Mark and Francois [of Hill Dickinson] to deliver responsive and practical advice to help identify and reso
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