Cadence Minerals (LON: KDNC) shares have fallen over 16% on Friday morning after the group raised capital via a placing.

The group announced that to pay off debt and bolster finances, it had placed shares at a discount and raised £1.25m.

Cadence Minerals has issued a price of 12 pence per share – roughly a 21.7% discount to the closing mid-price on 19 August 2020.

In mid morning trade on Friday shares were trading above the placing price at 13.65p.

The group said in a statement: “Cadence intends to use the net proceeds of the Placing for general working capital and to provide flexibility to the Company to repay loan notes from cash reserves rather than from its holdings in quoted investments. The outstanding balance on Cadence’s loan notes, which were announced on 15 June 2019 and 1 August 2019, is currently c. £1.7 million.”

Cadence Minerals (LON: KDNC) shares are trading -16.51% at 13,65 (0926GMT).