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Cadence Minerals

Cadence Minerals raise £1.25 million through successful placing

Cadence Minerals plc (LON:KDNC) has announced that it has raised £1.25 million through the placing of 10,416,662 new ordinary shares in the capital of the Company with new and existing investors at an issue price of 12 pence per share, representing approximately 21.7% discount to closing mid-price on 19 August 2020.

Use of Proceeds

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.

Operational Update

As announced on the 11 August, Companhia Docas de Santana (“CDSA”), a public (municipal) company and the port operator requested some additional non-statutory contractual requirements and undertakings. DEV has provided the requested documentation, and continues to liaise with the State of Amapa and SEMA (Secretaria de Estado de Meio Ambiente). Cadence understands that SEMA will provide the required documentation imminently. Cadence will provide an update once the first shipment is underway.

Funding Details

The Company entered into a placing agreement with WH Ireland pursuant to which terms WH Ireland agreed to arrange the Placing. The Company has given certain customary warranties and indemnities under the Placing Agreement in favour of WH Ireland. Completion of the Placing is subject to the satisfaction of the conditions contained in the Placing Agreement including, but not limited to, Admission.

The Appendix to this Announcement contains the detailed terms and conditions of the Placing and the basis on which investors agreed to participate in the Placing. The Placing has not been underwritten by WH Ireland. Placees are deemed to have read and understood this Announcement in its entirety, including the Appendix, and to have made their offer on the terms and subject to the conditions contained herein and to have given the representations, warranties, undertakings and acknowledgements contained in the Appendix to this Announcement.

The Placing Shares will be issued, credited as fully paid, and will rank pari passu with the existing Ordinary Shares in issue in the capital of the Company, including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such shares after the date of their issue.

Admission and Settlement

Application will be made for the admission to trading on the AIM market of London Stock Exchange plc and to the AQSE Growth Market operated by Aquis Exchange Plc for the Placing Shares. Admission is expected to occur on or around 27 August 2020. Following Admission, the Company will have 140,219,053 Ordinary Shares in issue. There are no shares held in treasury. The total voting rights in the Company is therefore 140,219,053 and Shareholders may use this figure as the denominator by which they are required to notify their interest in, or change to their interest in, the Company under the Disclosure Guidance and Transparency Rules.

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