Extractive Industries

Cadence agrees up to $10m loan for Amapá

Cadence Minerals plc has agreed up to a US$10 million loan to develop the Amapá iron ore project in Brazil, including optimisation studies on the processing route and environmental licensing.

TRANCHES

A commitment of an initial tranche of $2m has been agreed with Riverfort Global Capital Ltd to be entered into by RiverFort Global Opportunities PCC Ltd and YA II PN, Ltd.

A further $8m may be drawn down over the next three years, subject to investors’ agreement. 

Cadence said that the continued investment increased its stake in Amapá to approximately 33%.

REPAYMENTS

The $2m has a 24-month term and a six-month principal repayment holiday, followed by 18 equal monthly cash repayments with annual interest rate of 9.5%.

A missed payment in cash will result in settlement made in shares.

Cadence’s security to the investors includes a floating charge over the company’s investments, placing its holding in European Metals Holdings into escrow and the issue of 8,251,224 new ordinary shares to the investors to be used if necessary.

As part of the loan, the company has also granted 8,251,224 warrants to subscribe for ordinary shares in Cadence at an exercise price of 13.2 pence, a 35% per cent premium to the current share price, with 48 months.

Following admission of the 8,251,224 initial issued shares, the company will have 180,971,037 shares in issue, each with one voting right. Cadence currently holds no shares in treasury.

Exit mobile version