Fundraise for further Amapa activities
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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 (Non-Executive Chair) | £40,000 | 1,600,000 | 1,981,602 | 0.87% |
| Kiran Morzaria (Chief Executive Officer) | £45,000 | 1,800,000 | 3,373,240 | 1.48% |
| Donald Strang (Finance Director) | £40,000 | 1,600,000 | 2,557,545 | 1.12% |
| Adrian Fairbourn (Non-Executive Director) | Nil | Nil | 731,005 | 0.32% |
| 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.
| 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 | |
| a) | Name: | Cadence Minerals plc | |
| b) | LEI: | 213800TUZWG9C2GRNO58 | |
| 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 | |
| a) | Name: | Cadence Minerals plc | |
| b) | LEI: | 213800TUZWG9C2GRNO58 | |
| 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 | |
| a) | Name: | Cadence Minerals plc | |
| b) | LEI: | 213800TUZWG9C2GRNO58 | |
| 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
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