Funding Secured for Azteca Offtake Agreement
30/09/2025 07:00
RNS Number : 3091B
Cadence Minerals PLC
30 September 2025
The company deems the information contained within this announcement 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.
Cadence Minerals Plc
("Cadence Minerals", "Cadence", or "the Company")
Funding Secured for Cadence's Participation in the Azteca Plant Offtake via Equity Subscription of £2.16 million; Directors Subscription of £0.18 million and Retail Offer to raise up to £0.2 million
Cadence Minerals (AIM: KDNC) is pleased to announce that it has successfully raised its portion of the capital required to fund the restart of the Azteca Plant in Brazil. Cadence has received subscriptions to raise £2.16 million through the issue of 72,000,000 new ordinary shares of 1 pence each in the Company ("Ordinary Shares") at a price of 3 pence per Ordinary Share ("Issue Price") (the "Subscription"). In addition, the Directors have directly subscribed to the Company for 6,000,000 Ordinary Shares at the Issue Price ("Directors Subscription") utilising existing authorities to allot shares.
Highlights
· Funding Secured - £2.34m raised (including £2.16m Subscription and £0.18m Director Subscription), ensuring Cadence can meet its contribution to the Azteca Plant financing.
· Early Cashflow Catalyst - Restart of the Azteca Plant expected to produce c.380,000 tpa of 65% Fe concentrate with modest upfront capital, forecast to deliver approximately US$32m free cashflow over three years.
· Attractive Returns - Cadence's 10-15% contribution to the US$4.6m Prepay is expected to generate a c.70% IRR, with cashflow positive operations from the first shipment.
· Strategic Reinvestment - Free cashflow from Azteca will fund working capital, operations, the Definitive Feasibility Study ("DFS") and early works for the full 5.5 Mtpa DR-grade Amapá Project (NPV US$1.97bn).
· Disciplined Pathway - This financing alongside the anticipated offtake agreement provides all capital to bring the Azteca into production and provide the near-term cashflow to fund the DFS and early works and the Amapá Project.
Andrew Suckling, Chairman, commented:
"The successful funding of Cadence's Azteca commitment represents another major milestone in the staged development of Amapá. With this capital secured, we are able to move forward with confidence into a phase that delivers near-term revenue and establishes the financial and operational foundation for long-term growth."
Kiran Morzaria, Chief Executive Officer, added:
"This financing is a pivotal step for Cadence. Although equity dilution is never taken lightly, it is the pragmatic way to unlock near-term revenues and move Amapá into production. By securing our contribution to the Azteca restart, we are laying the foundation for a self-funding development pathway - one that delivers cashflow, and drives long-term value for shareholders.
The restart of Azteca not only provides immediate returns, but also demonstrates Amapá's quality to the market, strengthens our licence to operate, and funds the next stage of development through the DFS and early works. While additional funding may be required to deliver the full 5.5 Mtpa project, today's raise ensures we have a disciplined, phased route from near-term cashflow to long-term growth."
Azteca Update and Use Funds
As previously outlined; by restarting the Azteca Plant with modest upfront capital we can generate near-term revenue, reinforce our licence to operate, and showcase the quality of Amapá's product to the market. At the same time, we are laying the foundations for the full 5.5 Mtpa operation - a low-cost DR-grade project with a US$1.97 billion NPV.
Cadence has now secured its participation in the Azteca financing. The Company will contribute approximately 11% of the Azteca Plant capital expenditure, with the balance funded by its offtake partner. This agreement is expected to cover all refurbishment and working capital requirements to bring Azteca into a cashflow-positive position. Once operational, it is anticipated that free cashflow from Azteca will fund the Definitive Feasibility Study (DFS) and early development works for the broader Amapá Project.
Initial sampling results confirm the grades anticipated, with final results on the remaining samples expected shortly. The definitive funding agreement is at an advanced stage and stipulates that financing is payable on execution. The proceeds of the Subscription ensure Cadence can execute once the definitive agreement is finalised and the remaining samples processed.
Together, these steps establish a clear sequence: licensing, construction, recommissioning, first production, and cashflow.
In addition to Cadence's Azteca contribution, the net proceeds of the Subscription will fund Amapá project costs outside of the Azteca refurbishment until the operation reaches a cashflow-positive position. They will also be applied to repay the outstanding convertible loan facility, thereby strengthening the Company's balance sheet.
This phased approach means that while today's equity raise introduces dilution, it provides the essential bridge to early revenues. Once Azteca is in production, Cadence does not expect to fund the DFS and early works from further equity.
Subscription
Cadence has raised, subject to Admission, £2.16 million before expenses (the "Subscription") by way of a placing arranged by Fortified Securities of 72,000,000 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").
The Issue Price represents a discount of approximately 23% per cent to the closing bid price of 3.9 pence per ordinary share on 29 September 2025, the latest practicable business day before the publication of this Announcement.
Directors Subscription
The Directors of the Company have subscribed to the Directors Subscription under the same terms as the Subscription for £0.18m, with the directors participating as follows:
| 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 New Ordinary Shares |
| Andrew Suckling (Non-Executive Chairman) | £60,000 | 2,000,000 | 3,981,602 | 0.98% |
| Kiran Morzaria (Chief Executive Office) | £30,000 | 1,000,000 | 5,429,807 | 1.34% |
| Donald Strang (Finance Director) | £60,000 | 2,000,000 | 4,557,545 | 1.12% |
| Adrian Fairbourn (Non-Executive Director) | £30,000 | 1,000,000 | 1,731,005 | 0.43% |
| Total | £180,000 | 6,000,000 | 15,699,959 | 3.87% |
| For further information, contact: | |
| Cadence Minerals plc | +44 (0) 20 3582 6636 |
| Andrew Suckling | |
| Kiran Morzaria | |
| Zeus (NOMAD & Broker) | +44 (0) 20 3829 5000 |
| James Joyce | |
| Darshan Patel Gabriella Zwarts | |
| Fortified Securities - Joint Broker | +44 (0) 20 3411 7773 |
| Guy Wheatley | |
| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green |
| 1 | Details of the person discharging managerial responsibilities/person closely associated | |||||||||||||||
| a) | Name | 1. Andrew Suckling 2. Kiran Morzaria 3. Donald Strang 4. Adrian Fairbourn | ||||||||||||||
| 2 | Reason for the notification | |||||||||||||||
| a) | Position/status | 1. Non-Executive Chairman 2. Chief Executive Office 3. Finance Director 4. Non-Executive Director | ||||||||||||||
| b) | Initial notification/ Amendment | Initial notification | ||||||||||||||
| 3 | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||||||||||||
| a) | Name | Cadence Minerals PLC | ||||||||||||||
| b) | LEI | 213800TUZWG9C2GRNO58 | ||||||||||||||
| 4 | Details of the 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, type of instrument Identification code | Ordinary Share GB00B067JC96 | ||||||||||||||
| b) | Nature of the transaction | Share Purchase in Directors Subscription | ||||||||||||||
| c) | Price(s) and volume(s) |
| ||||||||||||||
| d) | Aggregated information - Aggregated volume - Price | 6,000,000 £180,00 | ||||||||||||||
| e) | Date of the transaction | 30/09/2025 | ||||||||||||||
| f) | Place of the transaction | Outside a trading venue | ||||||||||||||