Member Info for EV_Bull

http://www.dce.com.cn/DCE/Products/Industrial/Iron%20Ore/index.html

As a rough working out, say we think EMH will double and be worth £1.44 in the next year then we would all be 4p better off on a per share basis from the dilution vs the sale.

If BoD believed that our assets e.g EMH were more than 17% undervalued then the placing at a 17% discount (at the time it was decided) is a better way to go vs selling EMH.

I will repeat MBW:
The BoD may not have had a choice as we were required to take the 27% immediately so needed the funds in place prior to any announcement. Surely they would have done it if they could, they are shareholders themselves you know.

My take is that we were obligated to go to 27% as soon as the preconditions were met, which they will be/are
Note the ticks on slide 10: https://www.cadenceminerals.com/wp-content/uploads/2022/01/Corporate-Presentation-KDNC-JAN-2022.pdf

The pre-conditions were always around key licenses being granted and the bank deal, it was not related to the PFS.

Management have plenty of incentive - 1.8m options each at 29p

$660m = £486.85m x 27% = £131m

My take is that we were obligated to go to 27% as soon as the preconditions were met, which they will be/are
Note the ticks on slide 10: https://www.cadenceminerals.com/wp-content/uploads/2022/01/Corporate-Presentation-KDNC-JAN-2022.pdf

We were already told that 27% was being worked on
http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=31142821540789137

The parties to the agreement are now completing and filing the required contractual and regulatory documentation which will crystallise the Cadence and Indo Sino Trade Pte. Ltd. ("Indo Sino") joint venture company's 100% ownership of DEV and the Amapa Project.

Cadence has already begun work on the next investment phase to earn an additional 7% of Amapa for US$3.5 million. These funds will be primarily used to progress the pre-feasibility studies on the asset.

20% RNS is imminent

funds are available pretty much immediately
"Admission for the Placing Shares is expected to become effective and dealings in such shares are expected to commence at 8.00 a.m. on or around 10 February 2022"

"It is expected that settlement will take place on or about 10 February 2022 in CREST on a T+5 basis in accordance with the instructions set out in the trade confirmation. Settlement will be through WH Ireland against CREST ID: 601 A/C: WRCLT."

Full quote:
"The Company is mindful of its existing shareholders and wants to give shareholders the opportunity to invest on the same terms as those who have participated in the Placing. Consequently, the Company will shortly be sending a circular to shareholders setting out the terms of an open offer, which will allow existing qualifying shareholders the ability to subscribe for further shares at the Placing Price pro-rata to their existing holdings (the "Open Offer") up to a maximum number of shares to be detailed in the circular."

The open offer is separate to the placing, we need to wait for details on it.

"the Company will shortly be sending a circular to shareholders setting out the terms of an open offer"

hopefully yes

Nothing has been announced yet regarding the open offer another RNS should follow with details, usually your broker will contact you once it's announced.

I can only presume we are obligated to go straight to 27% because the preconditions are all met, otherwise taking 20% first would make more sense from a price perspective, I will fill my boots given the discount though.

I mean this effectively confirms 27% of Amapa is going to be over the line within a few days.

There is a possibility of using excess funds to earn-in on LT/LS - pay for drilling etc.

Yes: http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=311428223945759151
"Cadence intends to use the net proceeds of the Placing to invest further in the Amapa Iron Ore Project increasing its stake to 27 per cent."