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Cadence Minerals (AIM: KDNC) has successfully raised £625,000 through a placing of 25,000,000 new ordinary shares at an Issue Price of 2.5 pence per share. This fundraising, facilitated by Fortified Securities, aims to bolster Cadence's financial capacity to advance its investment in the Amapá Iron Ore Project in Brazil.
The Fundraising Initiative
In addition to the placing, Andrew Suckling, Kiran Morzaria, and Donald Strang, collectively known as the Subscriber Directors, have subscribed for 5,000,000 new ordinary shares at the Issue Price, generating gross proceeds of £125,000.
Pricing and Strategic Placement
The Issue Price of 2.5 pence per share represents an 18% discount to Cadence's closing price of 3.05 pence per ordinary share on 11 July 2024, reflecting a strategic move to attract investment while optimizing shareholder value.
Utilization of Proceeds
The net proceeds from this fundraise will primarily be directed towards enhancing Cadence's initiatives at the Amapá Iron Ore Project. Specifically, funds will support:
- Continued testing of the 67% Fe "Green Iron" product flow sheet to a Pre-Feasibility Study (PFS) level of accuracy.
- Preparation and publication of a revised PFS economic model, contingent upon successful outcomes from the 67% flow sheet, incorporating anticipated price increases and any adjustments in capital or operational expenditure.
- Provision of general working capital for ongoing operations at the Amapá Project, including funding for the licensing process related to the tailing storage facility.
Strategic Objectives and Future Outlook
Cadence Minerals' strategic allocation of these funds underscores its commitment to advancing the Amapá Iron Ore Project and capitalizing on the economic potential of the "Green Iron" product. The company aims to enhance operational efficiencies, expand its resource base, and deliver sustainable value to shareholders amidst a dynamic market environment.
To summarise, the successful completion of this fundraising initiative positions Cadence Minerals strongly to execute its growth strategy at the Amapá Iron Ore Project. With the support of Fortified Securities and the Subscriber Directors, Cadence remains focused on achieving key milestones and driving long-term value creation in the iron ore sector.
