Cadence Minerals (KDNC) is to raise £200,000 via the Winterflood Retail Access Platform (WRAP) through the potential issue of just under 6.7 million shares at 3p.
The WRAP offer comes in conjunction with a £2.24 million placing that was announced at the end of September, with the shares issued at the same price.
The money raised will be used to help finance the restart of the Azteca plant at the company’s Amapa iron ore project in Brazil. Cadence is providing a portion of the re-start money, with the rest coming from an off-take partners. It’s estimated that the plant will process around 380,000 tonnes of iron concentrate per year.
The offer will close at 5:00 pm on 7 October 2025.
There is a minimum subscription of £100 per investor under the terms of the offer.
View from Vox
Cadence shares moved up sharply last month as the company looked to re-start operations at the Azteca plant, and as sentiment in the broader mining sector improved. They dipped a bit around the time of the placing, but have already started on their upward leg again, and remain higher than they have been for the past 12 months, with the exception of September’s late spike. The company is clearly on the right trajectory and, allowing that there is some execution risk, ought to be able to book a handsome return on its Azteca investment.