REG - Cadence Minerals PLC - Placing to raise £500,000 & Issue of Warrants

Cadence MineralsAnnouncement

05/04/2024 13:30

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RNS Number : 5431J  Cadence Minerals PLC  05 April 2024

Cadence Minerals Plc

 

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

 

Placing to raise £500,000 and Issue of Warrants to Advance the Amapa Iron Ore
Project

 

Cadence Minerals (AIM: KDNC; OTC: KDNCY) announces that it has successfully
raised, subject to Admission, £500,000 before expenses (the "Fundraise")
 through the placing of 16,666,667 new ordinary shares (the "New Ordinary
Shares") in the capital of the Company at a price of 3 pence per Ordinary
Share (the "Issue Price") and the issue of warrants to the subscriber of the
New Ordinary Shares in the ratio of one warrant to each one New Ordinary Share
subscribed for (the "Warrant"). The Fundraise was with a single institutional
investor.

 

The Issue Price represents a discount of approximately 43 per cent. to the
closing price of 5.25 pence per ordinary share on 4 April 2024, being the
latest practicable business day prior to the publication of this Announcement.

 

The Warrants in the Fundraise grant rights to subscribe for one additional
Ordinary Share for each Warrant held in the ratio of one Warrant for every one
New Ordinary Share issued to the investor. The Warrants are exercisable at a
price of 5 pence per Ordinary Share and expire on 31 March 2025

 

The net proceeds of the Fundraise will solely be used to fund Cadence's
investment in the Amapá Iron Ore Project in Brazil ("Amapá", "Project" or
"Amapá Project"), specifically:

 

·      Prepare a revised mine schedule, up to a Pre-Feasibility Study
("PFS") level, to reflect an increased production of 5.5 million tonnes per
annum ("Mtpa"), with 4.51 Mtpa at 65% Fe and 0.99 Mtpa at 62% Fe.

·      Prepare and publish a revised PFS economic model that reflects
the production increase and the 33% lower plant capital expenditure, which we
announced on March 22, 2024.

·      The sampling and testing of the 67% Fe "Green Iron" product flow
sheet, to a PFS level or accuracy.

·      If the testing of the "Green Iron" flow sheet is successful, the
preparation and publication of a revised PFS economic model to reflect the
higher product quality increased production.

·      Working capital at the Amapá Project to fund ongoing licensing
requirements, with the expectation that all the required licensing for
construction will be granted by the end of 2024.

 

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 11
April 2024. The New Ordinary Shares will represent approximately 8.4 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 197,637,704 Ordinary Shares, all of which carry one voting right
per share. The Company does not hold any Ordinary Shares in treasury. The
figure of 197,637,704 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.

 

Cadence CEO Kiran Morzaria commented: "I am pleased that we have been able to
raise this money from a single investor at a pivotal time for the development
and evolution of Amapá. This will enable completion of the revised PFS and
fund the licensing process through to a license for construction at the end of
2024. I look forward to reporting back with further updates."

 

 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

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

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

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information
contained in this announcement. Kiran holds a Bachelor of Engineering
(Industrial Geology) from the Camborne School of Mines and an MBA (Finance)
from CASS Business School.

 

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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