Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that
Macarthur's combined rail position now extends the Company's potential access to rail haulage capacity in
Increasing Macarthur's aggregated rail access is critical to accelerating the Company's early revenue objectives. The maximising of rail capacity is subject to successfully securing matching capacity at Fremantle and Esperance ports.
The Company's continued incremental approach to building rail access is both deliberate and strategic as it seeks to maximise opportunities for the export of iron ore products at the earliest available opportunity.
Key Agreement Terms
The rail haulage agreement with
Enhancing the Pathway for Export
The agreement with
DSO and Magnetite Project Financing to be Accelerated
With Macarthur's various production strategies now gaining material traction, the Company is determined to accelerate its project financing.
Anticipated cash inflows from Warrants
During the course of September and December this year, a material number of in-the-money warrants are anticipated to be exercised. Those warrant holders electing to exercise will be delivered an opportunity to consolidate their position, and this will in turn, provide the Company with funds to support the pursuit of revenue generating activities.
DSO Funding
In response to material milestones being achieved on project and logistics planning, Macarthur now intends to accelerate arrangements for project financing to support DSO mining operations at Ularring. Management has already advanced its pre-planning over the course of the last several months, and a funding process (at a yet to be determined future price) to support the debt/equity capital requirements for the DSO mining operations is being progressed.
The Company is intending to open formal negotiations for mandates for the purpose of settling the engagements and structuring for the raise of required debt/equity funding to support future DSO mining operations.
Magnetite Funding
Finally, the Company intends to open negotiations for a mandate (or mandates) to secure an early, conditional equity and debt funding deal that will enable Macarthur to progress towards first magnetite production following delivery of the current Feasibility Study. Part of this funding would be allocated to necessary pre-production activities to streamline the delivery of the magnetite project. Opportunities for an early combined funding solution that can support both the planned DSO mining operations and financing of magnetite mining operations through to first production are being actively pursued.
The acceleration of Macarthur's financing strategy is now firmly in motion as it strengthens its resolve to transition into production as quickly as possible.
Cadence holds approximately 1% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in
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Forward-Looking Statements
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