1st May 2020 16:41
(Alliance News) - Cadence Minerals PLC on Friday said Amapa iron ore project in Brazil remains on target to commence the shipment of its stockpile of iron ore by the end of the second or early in the third quarter of 2020.
The company, which invests and develops lithium and rare earth assets, said DEV Mineracao SA, owner of the Amapa iron ore project, has identified that it will require start up working capital to begin operations and Cadence has agreed to fund these amounts via a bridging loan bearing an annual interest rate of 18%.
The loan is repayable over four months from the date of advance, which the company expect to be later in May.
To fund the bridging loan, Cadence said it has raised GBP525,000 through the placing of 8.8 million new shares in the capital of the company to new and existing investors at an issue price of 6 pence each. The placing price represents 20% discount to the closing mid-price on Thursday.
On Friday, Cadence shares closed 19% lower in London at 6.49p each.
"As we move ever closer to the Amapá restart, I am delighted that DEV are already at contract stage with several principal local contractors to commence the iron ore shipments and enter the operational phase of the asset," said Cadence Chief Executive Kiran Morzaria.
By Evelina Grecenko; [email protected]
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