Cadence Minerals (AIM:KDNC) has told investors Hastings Technology Metals, its joint venture partner in the Yangibana Rare Earth Project in Western Australia, has raised $20.7m in an oversubscribed placing.
The funds will be used to advance the ‘world-class’ project from a technical, financial, regulatory and customer point of view with the procurement of equipment, further engineering design as well as grade and resource drilling, mine site works.
Cadence owns 30% of three mining leases and six exploration licences which form part of the Yangibana Rare Earth Deposit which is located in Western Australia while its joint venture partner, Hastings Technology Metals (ASX:HAS), owns the remaining 70%.
Shares in Cadence Minerals have improved from lows of 8.88p earlier this month and were trading 5.64% lower at 12.13p this morning following the announcement.
Commenting on the raise, Executive Chairman, Charles Lew said it was “gratifying” to see strong interest from new investors and that it was a testament to the team’s hard work.
He said, “The funds from the capital raising will enable us to continue to drive the Yangibana rare earths project forward alongside our target to begin construction next year."
In a separate statement, Cadence said it continues to progress talks with secured bank creditors alongside its partners in regard to its investment in the Amapa Iron Ore Project.
The reaching of a settlement remains the final precondition for Cadence to be able to make its initial investment in the Amapa Project and effectively become a 20% interest holder.
It is expected that at full production, the Amapá Project, has a mine life of 14 years and at full capacity is targeting to produce up to 5.3 Mt of iron ore per annum.
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