Cadence Minerals (KDNC) has announced the early closing of its £200,000 retail offer, which was announced in conjunction with a larger fundraising designed to facilitate the re-start of the Azteca plant at the Amapa iron ore project in Brazil.
Azteca is expected to produce around 380,000 tonnes of concentrate per year, and Cadence expects a return of around 70% on its portion of the financing. The bulk of the finance will be put up by Cadence’s off-take partner.
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Early closing of the retail offer is a sign that the market has real confidence in Cadence’s plans, and is willing to come up with the money to make them happen. A fuller update will be issued by the company after the weekend, but in the meantime the shares have risen by more than 20% and have already made up much of the ground lost before the fundraising was announced.