REG - Cadence Minerals PLC - Fundraise for further Amapa activities

Cadence MineralsAnnouncement

12/07/2024 07:00

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RNS Number : 1306W  Cadence Minerals PLC  12 July 2024

Cadence Minerals Plc

 

("Cadence Minerals", "Cadence", or "the Company")

 

Fundraise to raise £750,000 for further Amapa Project activities

 

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.

 

Related Party Transactions

As the Directors of the Company, being the Subscribing Directors, are
considered to be "related parties" as defined under the AIM Rules, their
participation in the Subscription constitutes a related party transaction for
the purposes of Rule 13 of the AIM Rules.

 

 Director                    Subscription Amount  No. of New Ordinary Shares subscribed for  Resulting shareholding in the Company  % shareholding in the Company's issued share capital as enlarged by the
                                                                                                                                    Placing
 Andrew Suckling             £40,000              1,600,000                                  1,981,602                              0.87%

 (Non-Executive Chair)
 Kiran Morzaria              £45,000              1,800,000                                  3,373,240                              1.48%

 (Chief Executive Officer)
 Donald Strang               £40,000              1,600,000                                  2,557,545                              1.12%

 (Finance Director)
 Adrian Fairbourn            Nil                  Nil                                        731,005                                0.32%

 (Non-Executive Director)
 Total                       £125,000             5,000,000                                  8,643,392                              3.79%

 

Adrian Fairbourn, being a Director of the Company independent of the
fundraise, having consulted with Cadence Mineral's Nominated Adviser, WH
Ireland Limited, consider the terms of the fundraise to be fair and reasonable
insofar as the Company's shareholders are concerned.

 

Application will be made for the admission to trading on the AIM market
("AIM") of London Stock Exchange plc ("LSE") for the New Ordinary Shares
("Admission"). Admission is expected to occur at 8.00 a.m. on or around 19
July 2024. The New Ordinary Shares will represent approximately 13.2 per cent.
of the Company's issued share capital immediately following Admission.

 

Following Admission, the Company's issued and fully paid share capital will
consist of 227,637,704 Ordinary Shares, all of which carry one voting right
per share. The Company does not hold any Ordinary Shares in treasury. The
figure of 227,637,704 Ordinary Shares may be used by shareholders as the
denominator for the calculation by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
share capital of the Company under the Disclosure Guidance and Transparency
Rules of the Financial Conduct Authority.

 

The New Ordinary Shares will be issued fully paid and will rank pari passu in
all respects with the Company's existing Ordinary Shares.

 

 For further information contact:

 Cadence Minerals plc                                         +44 (0) 20 3582 6636
 Andrew Suckling
 Kiran Morzaria

 WH Ireland Limited (NOMAD & Broker)                          +44 (0) 20 7220 1666
 James Joyce
 Darshan Patel

 Isaac Hooper

 Fortified Securities - Joint Broker                          +44 (0) 20 3411 7773
 Guy Wheatley

 Brand Communications                                         +44 (0) 7976 431608
 Public & Investor Relations
 Alan Green

 

In accordance with Article 19 of the UK Market Abuse Regulation, detailed
information is set out below.

 

 1   Details of the person discharging managerial responsibilities/person closely
     associated
 a)  Name:                                     Andrew Suckling
 2   Reason for the notification
 a)  Position/Status:                          Non-Executive Chair
 b)  Initial Notification/Amendment:           Initial Notification
 3   Details of the issuer, emission allowance market participation, auction
     platform, auctioneer or auction monitor
 a)  Name:                                     Cadence Minerals plc
 b)  LEI:                                      213800TUZWG9C2GRNO58
 4.  Details of transaction(s); section to be repeated for (i) each type of
     instrument; (ii) each type of transaction; (iii) each date; and (iv) each
     place where transactions have been conducted.
 a)  Description of the financial instrument:  Ordinary shares of £0.01

     Identification code:                      ISIN: GB00BJP0B151
 b)  Nature of the transaction:                Purchase of Shares
 c)  Price(s) and volume(s):                   Price(s)                    Volume(s)
     2.5p                                                                  1,600,000
 d)  Aggregated volume:                        1,600,000

     Price:                                    £40,000
 e)  Date of the Transaction:                  11 July 2024
 f)  Place of the Transaction:                 London Stock Exchange

4.

Details of transaction(s); section to be repeated for (i) each type of
instrument; (ii) each type of transaction; (iii) each date; and (iv) each
place where transactions have been conducted.

a)

Description of the financial instrument:

Identification code:

Ordinary shares of £0.01

ISIN: GB00BJP0B151

b)

Nature of the transaction:

Purchase of Shares

c)

Price(s) and volume(s):

Price(s)

Volume(s)

2.5p

1,600,000

d)

Aggregated volume:

Price:

1,600,000

£40,000

e)

Date of the Transaction:

11 July 2024

f)

Place of the Transaction:

London Stock Exchange

 

 1   Details of the person discharging managerial responsibilities/person closely
     associated
 a)  Name:                                     Kiran Morzaria
 2   Reason for the notification
 a)  Position/Status:                          Chief Executive Officer
 b)  Initial Notification/Amendment:           Initial Notification
 3   Details of the issuer, emission allowance market participation, auction
     platform, auctioneer or auction monitor
 a)  Name:                                     Cadence Minerals plc
 b)  LEI:                                      213800TUZWG9C2GRNO58
 4.  Details of transaction(s); section to be repeated for (i) each type of
     instrument; (ii) each type of transaction; (iii) each date; and (iv) each
     place where transactions have been conducted.
 a)  Description of the financial instrument:  Ordinary shares of £0.01

     Identification code:                      ISIN: GB00BJP0B151
 b)  Nature of the transaction:                Purchase of Shares
 c)  Price(s) and volume(s):                   Price(s)                    Volume(s)
     2.5p                                                                  1,800,000
 d)  Aggregated volume:                        1,800,000

     Price:                                    £45,000
 e)  Date of the Transaction:                  11 July 2024
 f)  Place of the Transaction:                 London Stock Exchange

4.

Details of transaction(s); section to be repeated for (i) each type of
instrument; (ii) each type of transaction; (iii) each date; and (iv) each
place where transactions have been conducted.

a)

Description of the financial instrument:

Identification code:

Ordinary shares of £0.01

ISIN: GB00BJP0B151

b)

Nature of the transaction:

Purchase of Shares

c)

Price(s) and volume(s):

Price(s)

Volume(s)

2.5p

1,800,000

d)

Aggregated volume:

Price:

1,800,000

£45,000

e)

Date of the Transaction:

11 July 2024

f)

Place of the Transaction:

London Stock Exchange

 

 1   Details of the person discharging managerial responsibilities/person closely
     associated
 a)  Name:                                     Donald Strang
 2   Reason for the notification
 a)  Position/Status:                          Finance Director
 b)  Initial Notification/Amendment:           Initial Notification
 3   Details of the issuer, emission allowance market participation, auction
     platform, auctioneer or auction monitor
 a)  Name:                                     Cadence Minerals plc
 b)  LEI:                                      213800TUZWG9C2GRNO58
 4.  Details of transaction(s); section to be repeated for (i) each type of
     instrument; (ii) each type of transaction; (iii) each date; and (iv) each
     place where transactions have been conducted.
 a)  Description of the financial instrument:  Ordinary shares of £0.01

     Identification code:                      ISIN: GB00BJP0B151
 b)  Nature of the transaction:                Purchase of Shares
 c)  Price(s) and volume(s):                   Price(s)                    Volume(s)
     2.5p                                                                  1,600,000
 d)  Aggregated volume:                        1,600,000

     Price:                                    £40,000
 e)  Date of the Transaction:                  11 July 2024
 f)  Place of the Transaction:                 London Stock Exchange

4.

Details of transaction(s); section to be repeated for (i) each type of
instrument; (ii) each type of transaction; (iii) each date; and (iv) each
place where transactions have been conducted.

a)

Description of the financial instrument:

Identification code:

Ordinary shares of £0.01

ISIN: GB00BJP0B151

b)

Nature of the transaction:

Purchase of Shares

c)

Price(s) and volume(s):

Price(s)

Volume(s)

2.5p

1,600,000

d)

Aggregated volume:

Price:

1,600,000

£40,000

e)

Date of the Transaction:

11 July 2024

f)

Place of the Transaction:

London Stock Exchange

 

Cautionary and Forward-Looking Statements

Certain statements in this announcement are or may be deemed to be
forward-looking statements. Forward-looking statements are identified by
their use of terms and phrases such as "believe", "could", "should",
"envisage", "estimate", "intend", "may", "plan", "will", or the negative of
those variations or comparable expressions including references to
assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the company's future growth results of operations performance,
future capital, and other expenditures (including the amount, nature, and
sources of funding thereof) competitive advantages business prospects and
opportunities. Such forward-looking statements reflect the Directors' current
beliefs and assumptions and are based on information currently available to
the Directors.  Many factors could cause actual results to differ materially
from the results discussed in the forward-looking statements, including risks
associated with vulnerability to general economic and business conditions,
competition, environmental and other regulatory changes actions by
governmental authorities, the availability of capital markets reliance on key
personnel uninsured and underinsured losses and other factors many of which
are beyond the control of the company. Although any forward-looking statements
contained in this announcement are based upon what the Directors believe to be
reasonable assumptions. The company cannot assure investors that actual
results will be consistent with such forward-looking statements.

 

The information contained within this announcement is deemed by the company to
constitute Inside Information as stipulated under the Market Abuse Regulation
(E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European
Union (Withdrawal) Act 2018, as amended. Upon the publication of this
announcement via a regulatory information service, this information is
considered to be in the public domain.

 

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