Cadence Minerals has raised £4.1m by the way of a placing to fund the first tranche of their investment into the Amapa Iron Ore project in Brazil.
The offer was met with strong demand and was heavily oversubscribed. The placing price of 20.5p represents a discount of 17.1% to the closing price of 24.75p on 1st February 2022. The placing was taken up by both private and institutional investors.
The placing follows the landmark restructuring agreement with banks in December that cleared the way for Cadence Minerals to proceed with an investment into a joint venture that will own the Amapa asset. Cadence Minerals will invest $6 million over two stages to acquire a 27% interest in the project.
Taking into consideration long-term holders of Cadence Minerals shares, the company will also run an open offer to existing shareholders so they invest on the same terms as those that invested through the placing.
The Amapa Iron Ore project was valued at $462m in 2012 by Anglo American and in 2012 the mine produced 6.1mt of iron ore concentrate.