Cadence Minerals plc has raised a total £750,000 via an 18% discounted placing and a directors’ subscription for the Amapá iron ore project in northeast Brazil.
AMAPA
The company raised £625,000 before expenses by placing 25 million new ordinary shares, at 2.5 pence per ordinary share.
Non-executive chairman Andrew Suckling, chief executive Kiran Morzaria, and finance director Donald Strang also subscribed for an additional aggregate of 5m new ordinary shares at the issue price, raising gross £125,000.
Following admission, the company’s issued and fully paid share capital will consist of 227,637,704 ordinary shares, each with one voting right. No ordinary shares are held in treasury.
Proceeds will go towards testing of the 67% Fe “Green Iron” product flow sheet, to a PFS level or accuracy, and preparation and publication of a revised PFS economic model.
Funds will also be used for general working capital and for licensing on the tailing storage facility.
Earlier this week, Cadence said it expected the grant of an installation licence for the mine and railway by the end of 2024.
The licence will allow the rehabilitation and construction of Amapá, after which mining can begin.
Amapá has a mineral resources of 276 million tonnes at 38.33% iron and ore reserves of 196 Mt at 39.34%.
The project comprises the mine, processing plant, wholly owned port and a 194km railway.
Cadence has to date invested $13.9m in the project, equal to a 34.2% stake.