Cadence Minerals #KDNC – Placing to raise £500,000 and Issue of Warrants to Advance the Amapa Iron Ore Project

Cadence Minerals (AIM: KDNC; OTC: KDNCY) announces that it has successfully raised, subject to Admission, £500,000 before expenses (the “Fundraise”)  through the placing of 16,666,667 new ordinary shares (the “New Ordinary Shares”) in the capital of the Company at a price of 3 pence per Ordinary Share (the “Issue Price”) and the issue of warrants to the subscriber of the New Ordinary Shares in the ratio of one warrant to each one New Ordinary Share subscribed for (the “Warrant”). The Fundraise was with a single institutional investor.

The Issue Price represents a discount of approximately 43 per cent. to the closing price of 5.25 pence per ordinary share on 4 April 2024, being the latest practicable business day prior to the publication of this Announcement.

The Warrants in the Fundraise grant rights to subscribe for one additional Ordinary Share for each Warrant held in the ratio of one Warrant for every one New Ordinary Share issued to the investor. The Warrants are exercisable at a price of 5 pence per Ordinary Share and expire on 31 March 2025.

The net proceeds of the Fundraise will solely be used to fund Cadence’s investment in the Amapá Iron Ore Project in Brazil (“Amapá”, “Project” or “Amapá Project”), specifically:

• Prepare a revised mine schedule, up to a Pre-Feasibility Study (“PFS”) level, to reflect an increased production of 5.5 million tonnes per annum (“Mtpa”), with 4.51 Mtpa at 65% Fe and 0.99 Mtpa at 62% Fe.
• Prepare and publish a revised PFS economic model that reflects the production increase and the 33% lower plant capital expenditure, which we announced on March 22, 2024.

• The sampling and testing of the 67% Fe “Green Iron” product flow sheet, to a PFS level or accuracy.
• If the testing of the “Green Iron” flow sheet is successful, the preparation and publication of a revised PFS economic model to reflect the higher product quality increased production.

• Working capital at the Amapá Project to fund ongoing licensing requirements, with the expectation that all the required licensing for construction will be granted by the end of 2024.

Application will be made for the admission to trading on the AIM market (“AIM”) of London Stock Exchange plc (“LSE”) for the New Ordinary Shares (“Admission”). Admission is expected to occur at 8.00 a.m. on or around 11 April 2024. The New Ordinary Shares will represent approximately 8.4 per cent. of the Company’s issued share capital immediately following Admission.

Following Admission, the Company’s issued and fully paid share capital will consist of 197,637,704 Ordinary Shares, all of which carry one voting right per share. The Company does not hold any Ordinary Shares in treasury. The figure of 197,637,704 Ordinary Shares may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority.

The New Ordinary Shares will be issued fully paid and will rank pari passu in all respects with the Company’s existing Ordinary Shares.

Cadence CEO Kiran Morzaria commented: “I am pleased that we have been able to raise this money from a single investor at a pivotal time for the development and evolution of Amapá. This will enable completion of the revised PFS and fund the licensing process through to a license for construction at the end of 2024. I look forward to reporting back with further updates.”