Cadence Minerals PLC (AIM:KDNC) shares were up 11% on Monday, after it executed a binding prepayment offtake agreement with its selected offtake and logistics partner, unlocking funds for the Amapá iron ore project.
The company highlighted that the agreement provides a US$4.6 million prepayment and working-capital facility to support licensing and the restart of the Azteca Plant.
The facility includes US$3.45 million for licensing, refurbishment and commissioning and US$1.15 million of working capital tied to first production. The company said the initial tranche totals US$1.17 million, of which Cadence will contribute US$391,000. Further tranches become available once outstanding licences are granted and production begins.
"Executing the binding agreement is a major milestone in our staged approach to bringing Amapá back into production," chief executive Kiran Morzaria said.
"With due diligence complete and initial funding now available, we can progress the final licensing items ahead of commencing the refurbishment of the Azteca Plant."
Cadence added that the structure allows the company to retain exposure to near-term cash flow while contributing a modest share of capital.
In London, the share price was up 11.5% changing hands at 4.07p.