RE: RNS12 Jul 2024 07:03
Cadence Minerals (AIM: KDNC) announces that it has successfully raised, subject to Admission, £625,000 before expenses (the "Placing") by the way of a placing arranged by Fortified Securities of 25,000,000 new ordinary shares (the "New Ordinary Shares") in the capital of the Company at a price of 2.5 pence per Ordinary Share (the "Issue Price").
In addition to the above subscription, Andrew Suckling, Kiran Morzaria, and Donald Strang (together, the "Subscriber Directors") have also agreed to subscribe for an aggregate of 5,000,000 New Ordinary Shares at the Issue Price, raising gross proceeds of £125,000 ("Subscription").
The Issue Price represents a discount of approximately 18 per cent to the closing price of 3.05 pence per ordinary share on 11 July 2024, being the latest practicable business day prior to the publication of this Announcement.
Use of Funds
The net proceeds of the fundraise will be used to fund Cadence's investment in the Amapá Iron Ore Project in Brazil ("Amapá", "Project" or "Amapá Project"), specifically:
· The continued testing of the 67% Fe "Green Iron" product flow sheet, to a PFS level or accuracy.
· Prepare and publish a revised PFS economic model should the 67% flow sheet be successful that reflects the increase pricing anticipated from the product and any change in capital or operating expenditure in the revised flowsheet.
· General working capital at the Amapá Project and ongoing funding for the licensing for the tailing storage facility.