Cadence Minerals raises £650,000 to support Amapá project

Francesca Morgan
RNS Newswire
10:55, 8th June 2020

Cadence Minerals  (AIM:KDNC FOLLOW) said the owner of the Amapá iron ore project, DEV Mineração S.A., remains on target to ship its iron ore stockpile either by the end of Q2 or early Q3 2020.

Cadence has also announced it has raised net proceeds of £650,000 through the placing of 7,222,219 new ordinary shares at an issue of 9p per share, representing around 8% discount to Thursday’s closing price.

The group said it will use the proceeds of the placing to commission and publish an independent scoping study on the Amapá Project and to fund the project’s expenses.

It is expected that at full production the Amapá Project has a mine life of 14 years and at full capacity is targeting to produce up to 5.3 Mt of iron ore per annum.

Cadence said it will also use the proceeds to provide the group flexibility in paying down its outstanding loan notes, currently US$2.1 million, in accordance with its payment schedule. 

Shares in Cadence Minerals were trading 4.06% lower at 9.45p on Monday morning.

KDNC price chart

Meanwhile, the AIM-listed mineral group said, along with its joint venture partners, that it continues to engage with the secured creditors to reach a settlement regarding the project.

There remains only one major precondition for Cadence to make its investment in the Amapá Project and release the US$2.5 million sum currently held in escrow in a judicial trust account.

Once DEV has reached a settlement agreement with the secured bank creditors, Cadence will become a 20% shareholder in Amapá via its joint venture company which will own 99.9% of Dev.

For now, the JV partners will work with DEV to advance the restart of the Amapá Project using the proceeds of the iron ore, accelerating the production from the Amapá Project.

Follow News & Updates from Cadence Minerals here: FOLLOW

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Login or register to post comments

Recent Articles