Cadence Minerals raises £1.25m to repay loan notes

Brazil-focussed lithium developer Cadence Minerals has raised £1.25m, it announced on Friday, for both general working capital, and to allow it to repay loan notes using cash.

The AIM-traded firm said the funds were raised via a placing of 10,416,662 new ordinary shares with new and existing investors, at a price of 12p each, representing a discount of 21.7% to the closing mid-market price on 19 August.

It said it would use the net proceeds for general working capital, and to provide it with the flexibility to repay loan notes from cash reserves, rather than from its holdings in quoted investments.

The outstanding balance on Cadence's loan notes, as announced on 15 June and 1 August 2019, was currently £1.7m.

“As announced on 11 August, Companhia Docas de Santana (CDSA), a municipal company and the port operator, requested some additional non-statutory contractual requirements and undertakings,” Cadence’s board said of its current operations.

“DEV has provided the requested documentation, and continues to liaise with the State of Amapa and Secretaria de Estado de Meio Ambiente (SEMA).

“Cadence understands that SEMA will provide the required documentation imminently.”

The company said it would provide an update once the first shipment was underway.

At 0837 BST, shares in Cadence Minerals were down 16.51% at 13.65p.