Cadence Minerals shares drop after fundraise

Cadence Minerals was the heaviest faller on the AIM on Friday following the news that it has raised £750,000 through a share placing to fund further activity at its Amapá iron ore project in Brazil.

The stock was down around 9% at 2.78p by 1028 BST after two share placings: £625,000 was raised through the placing of 25m shares at 2.5p each, while £125,000 was raised after its non-executive chair, chief executive and finance director subscribed for 5m shares at 2.5p each.

The issue price was at an 18% discount to Thursday's closing price of 3.05p, while the total new ordinary shares represented 13.2% of the issued share capital.

Cadence said the fundraise would allow for the continued testing of the 67% Fe "green iron" product flow sheet to a prefeasibility study (PFS) level or accuracy, along with work towards a revised PFS economic model should the 67% flow sheet be successful.

Funds would also be used for general working capital at Amapá and ongoing funding for the licensing for the tailing storage facility.