Business
Funding Secured for Azteca Offtake Agreement
Funding Secured for Azteca Offtake Agreement.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n\n \n \n\n\n\nThe company deems the information contained within this announcement to constitute Inside Information as stipulated under the Market Abuse Regulation (E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via a regulatory information service, this information is considered to be in the public domain.\n \nCadence Minerals Plc\n \n(\"Cadence Minerals\", \"Cadence\", or \"the Company\")\n \nFunding Secured for Cadence's Participation in the Azteca Plant Offtake via Equity Subscription of £2.16 million; Directors Subscription of £0.18 million and Retail Offer to raise up to £0.2 million\n \nCadence Minerals (AIM: KDNC) is pleased to announce that it has successfully raised its portion of the capital required to fund the restart of the Azteca Plant in Brazil. Cadence has received subscriptions to raise £2.16 million through the issue of 72,000,000 new ordinary shares of 1 pence each in the Company (\"Ordinary Shares\") at a price of 3 pence per Ordinary Share (\"Issue Price\") (the \"Subscription\"). In addition, the Directors have directly subscribed to the Company for 6,000,000 Ordinary Shares at the Issue Price (\"Directors Subscription\") utilising existing authorities to allot shares.\n \nHighlights\n· Funding Secured - £2.34m raised (including £2.16m Subscription and £0.18m Director Subscription), ensuring Cadence can meet its contribution to the Azteca Plant financing.\n· Early Cashflow Catalyst - Restart of the Azteca Plant expected to produce c.380,000 tpa of 65% Fe concentrate with modest upfront capital, forecast to deliver approximately US$32m free cashflow over three years.\n· Attractive Returns - Cadence's 10-15% contribution to the US$4.6m Prepay is expected to generate a c.70% IRR, with cashflow positive operations from the first shipment.\n· Strategic Reinvestment - Free cashflow from Azteca will fund working capital, operations, the Definitive Feasibility Study (\"DFS\") and early works for the full 5.5 Mtpa DR-grade Amapá Project (NPV US$1.97bn).\n· Disciplined Pathway - This financin...