REG - Cadence Minerals PLC - Amapá Project Update - Licensing and Azteca

Cadence MineralsAnnouncement

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RNS Number : 1441Z  Cadence Minerals PLC  02 April 2026

 

 

The company deems the information contained within this announcement to
constitute Inside Information as stipulated under the Market Abuse Regulation
(E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European
Union (Withdrawal) Act 2018, as amended. Upon the publication of this
announcement via a regulatory information service, this information is
considered to be in the public domain.

Cadence Minerals Plc

("Cadence Minerals", "Cadence", or "the Company")

Amapá Project Update - Licensing and Azteca Progress

Cadence Minerals plc (AIM: KDNC) is pleased to provide an update on progress
towards the grant of the Installation Licence ("LI") for the Amapá Iron Ore
Project in Brazil ("Amapá" or the "Project"), and on continuing execution
readiness at the Azteca Plant ("Azteca").

Highlights

·    Permitted early works and procurement activities continue at the
Azteca Plant

·    Remaining Installation Licence workstreams with Instituto do
Patrimônio Histórico e Artístico Nacional ("IPHAN") and State of Amapá
Environmental Authority SEMA/AP continue to advance

·    IPHAN has confirmed that no additional archaeological field studies
are required in the previously impacted areas

·    The remaining archaeological workstream is now focused on
finalisation of the Termo de Ajustamento de Conduta ("TAC") process as the
route to IPHAN clearance to SEMA

·    The Project remains in execution readiness for Azteca refurbishment
and commissioning activities, subject to receipt of the required permits

Kiran Morzaria, Chief Executive Officer of Cadence Minerals, commented:

"The path to licence is now clearer, narrower and lower risk than before. The
outstanding workstreams are now well identified and continue to advance
through the regulatory process

Importantly, IPHAN has confirmed that no additional archaeological field
studies are required in the previously impacted areas. In practical terms,
this moves the remaining archaeological workstream onto a defined regulatory
pathway through the TAC process, rather than a broader technical process,
which we view as an important step in de-risking the path to LI.

Alongside this, permitted early works and procurement continue at Azteca,
preserving execution readiness and supporting a rapid move into refurbishment
activity once permitting is in place. Subject to permitting and execution, we
believe commissioning by the end of June 2026 remains achievable, with Azteca
representing the first stage in unlocking near-term cash flow and the broader
value of the Amapá Project."

Azteca Plant Progress

As announced on 13 March 2026, detailed mechanical and electrical engineering
for the Azteca Plant has been completed, and the refurbishment execution
package remains in place.

Permitted early works and procurement activities continue. These activities
are intended to maintain execution readiness pending receipt of the LI and to
support efficient mobilisation once permitting is in place.

Based on contingency within the current execution programme, the Company
believes commissioning by the end of June 2026 remains achievable, subject to
permitting and execution.

 

 

Installation Licence Progress

As previously disclosed, progression to the Installation Licence remains
subject to completion of a small number of defined regulatory items,
principally:

·    archaeological clearance from IPHAN and

·    water abstraction and tailings-related permitting issued by SEMA/AP.

IPHAN - Archaeological Workstream

Following submission of the archaeological material previously requested by
IPHAN, and subsequent engagement with the federal authority, IPHAN has
confirmed that no additional archaeological field studies are required in the
previously impacted areas of the Project, including locations affected by
legacy mining activities. This is an important development, as it narrows the
remaining archaeological workstream to a defined regulatory pathway, rather
than further technical fieldwork in those previously disturbed areas.

As a result of historic impacts that predate the Company's involvement in the
Project, IPHAN has indicated that the appropriate mechanism for progressing
the archaeological workstream, and for supporting clearance to SEMA for
issuance of the Installation Licence, is the execution of a Termo de
Ajustamento de Conduta ("TAC").

IPHAN has indicated proposed measures for inclusion in the TAC, centred on
cultural heritage publication, exhibition materials and studies, and project
work associated with a community museum / exhibition initiative.

Amapá continues to engage with IPHAN to finalise the TAC and once agreed and
executed, the TAC is expected to form the basis for IPHAN's clearance to SEMA
in respect of archaeological matters for the Installation Licence.

Water Abstraction & Tailings Disposal Permitting (SEMA/AP)

SEMA requested some further information in late March 2026. All documentation
and information requested was submitted last week, and the application has
progressed back to the Coordination of Water Resources Management
(CGRH/SEMA/AP) we understand the applications are progressing through final
administrative review, with no further studies requested.

Strategic Context

As previously announced on the 1 December 2025
(https://investormeet.cadenceminerals.com/page/announcements/4463086) ,
Cadence and its partners have established a funding structure to support
licensing, refurbishment, and initial working capital for the Azteca Plant .
The Company continues to view Azteca as the first stage of its broader
redevelopment strategy at Amapá.

Subject to receipt of the required licences, recommissioning of Azteca is
intended to provide an initial production platform and near-term operational
cash flow, while supporting the continued advancement of the wider 5.5 Mtpa
DR-grade development.

In this context, the Company believes the current regulatory workstreams are
important not only for the restart of Azteca, but also for unlocking the next
stage of value at Amapá.

Cadence Ownership

As of the end of March 2026, Cadence's total investment in the Amapá Project
is approximately US$16.1 million, representing a 36.2% equity stake.

About the Amapá Project

The Amapá Iron Ore Project is a fully integrated iron ore operation in Brazil
with established mine, rail, port and beneficiation infrastructure. The
Project hosts a JORC-compliant Mineral Resource of 276 million tonnes at 38%
Fe and a Proven and Probable Ore Reserve of 195.8 million tonnes at 39.34% Fe.

An updated Pre-Feasibility Study published on the 3 December 2024
(https://investormeet.cadenceminerals.com/page/announcements/3906354)
confirmed the potential to produce 67.5% Fe direct reduction ("DR") grade
concentrate at 5.5 Mtpa, with a post-tax NPV (10%) of US$1.97 billion over a
15-year mine life.

As part of a staged redevelopment strategy, Azteca is intended to be
recommissioned as the initial production facility, targeting approximately
380,000 tonnes per annum of ~65% Fe concentrate from existing tailings. This
initial production is intended to generate early cash flow to support ongoing
operations and the broader development of the Project, subject to permitting.

 For further information, contact:

 Cadence Minerals plc                                    +44 (0) 20 3582 6636
 Andrew Suckling
 Kiran Morzaria

 Zeus (NOMAD & Broker)                                   +44 (0) 20 3829 5000
 James Joyce
 Darshan Patel

 Fortified Securities - Joint Broker                     +44 (0) 20 3411 7773
 Guy Wheatley

 Public & Investor Relations - Brand Communications      +44 (0) 7976 431608
 Alan Green

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information
contained in this announcement. Kiran holds a Bachelor of Engineering
(Industrial Geology) from the Camborne School of Mines and an MBA (Finance)
from CASS Business School.

Cautionary and Forward-Looking Statements

This announcement contains forward-looking statements. Such statements are
based on the current expectations, assumptions and beliefs of the Directors
and are subject to known and unknown risks and uncertainties. Forward-looking
statements are not guarantees of future performance and may often be
identified by words such as "believe", "expect", "intend", "may", "plan",
"should", "will", "could" and similar expressions. Actual results may differ
materially from those expressed or implied by such statements due to a range
of factors, many of which are outside the control of the Company, including
changes in economic conditions, market conditions, regulatory developments,
the actions of governmental authorities, the availability of funding and other
risks affecting the Company's operations. Readers should not place undue
reliance on forward-looking statements, which speak only as at the date of
this announcement. Except as required by law or applicable regulation, the
Company undertakes no obligation to update or revise any forward-looking
statements.

 

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