Cadence Minerals (KDNC) has announced the result of its recent retail fundraise. The retail raise dovetailed with two larger subscriptions, one from directors, the total proceeds of which will be used to help fund the restart of the Azteca plant at the company’s Amapa iron ore project in Brazil.
The retail offer generated a significantly higher level of demand than anticipated, and in response, the Cadence increased the size of the offer to accommodate part of this demand. Despite this increase, applications still substantially exceeded the available allocation, and accordingly, were scaled back.
The total raised amounted to £300,000.
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Good to see strong levels of retail support for Cadence’s plans, as it moves towards a restart of Amapa. The company made a clear and straightforward case for the fundraise – that it will likely generate a 70% internal rate of return on its investment. What’s more, off-take partners are also investing heavily. On a broader note, does the result of this raise show that retail interest in the sector is now well and truly back? It will be interesting to see what the fourth quarter brings.