Cadence Minerals raises £1.3m to fund Australian exploration programme

Cadence Minerals raised £1.3m through a placing of 866m ordinary shares on Tuesday in order to fund an initial exploration programme across its Australian lithium assets.

The AIM-listed outfit issued the shares at a price of 0.15p per share, a 21% discount to the closing price of its ordinary shares on Monday.

Cadence now expects to use the proceeds of the fundraising to fulfil the initial exploration expenditure on its three recently acquired highly prospective assets in Australia across regions with proven high-grade lithium mineralisation.

The firm acquired the properties via binding investment agreements it has had in place with Lithium Technologies and Lithium Supplies, since 11 December 2017, to acquire up to 100% of six prospective hard rock lithium assets in Argentina.

Cadence will start developing the Picasso, Litchfield and Alcoota projects in Western Australia and the Northern Territory immediately, while retaining its exposure to the six assets in Argentina.

It will also use the funds to cover ongoing due diligence and project reviews across several potential investments and for general working capital purposes.

Admission of the shares to trading on AIM is expected to take place on 8 April.

As of 1100 GMT, Cadence shares had slumped 17.57% to 0.15p.