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Cadence Minerals nets tidy profit as it offloads part of its stake in Bacanora Minerals for £6mln

Cadence bought the 8.9mln shares it has now sold for £3.56mln a few years ago
investment growth
The 8.9mln shares sold represent 42% of Cadence's total stake in Bacanora

Cadence Minerals Plc (LON:KDNC) has sold almost half of its stake in AIM-quoted lithium explorer Bacanora Minerals Lts (LON:BCN) for £6.23mln.

The company – which still holds a 9.3% stake in Bacanora – snapped up the 8.9mln shares it has now sold between June 2013 and September for £3.56mln.

That means it netted a £2.67mln from today’s sale – a 75% return on investment.

The sale wasn’t due to a lack of confidence in the Bacanora team but rather that it is “important that [the company] realises investment profits in a timely fashion”.

Cadence was originally approached by an institutional investor about possibly offloading some of its Bacanora shares last month and it took that opportunity to begin discussions with other interested parties.

As such, it sold the chunk of shares to several institutions but said it had no interest in offloading any more of its stake at the moment.

Candence intends to invest some of the money raised in other early-stage mineral explorers, while it has also set aside a portion to renegotiate its current debt facility.

Shares dipped 4.4% to 0.38p in late afternoon trading.

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