REG - Cadence Minerals PLC - Amapá Project Update

Cadence MineralsAnnouncement

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RNS Number : 5673W  Cadence Minerals PLC  13 March 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 - Azteca Plant Progress and Licensing Update

 

Detailed engineering completed and execution package now in place at Azteca,
with early works due to commence in March as key Installation Licence
workstreams continue to advance.

 

Cadence Minerals plc (AIM: KDNC) is pleased to provide an update on progress
at the Azteca Plant within the Amapá Iron Ore Project in Brazil ("Amapá" or
the "Project"), together with progress on the remaining workstreams associated
with the Project's Installation Licence ("LI").

 

Highlights

·    Execution package in place: procurement requests for critical
refurbishment items were launched in March 2026, with contractor mobilisation
readiness established for a 90-day execution programme.

 

·    Early works commencing: certain permitted preparatory activities are
scheduled to commence in March, enabling selected workstreams to progress
ahead of the main refurbishment programme.

 

·    Critical path supported: together, these steps are intended to add
flexibility across key execution activities and help preserve the current
development timetable.

 

·    Licensing workstreams progressing: remaining Installation Licence
requirements, including IPHAN, water abstraction and tailings-related
permitting, continue to advance in parallel.

 

·    The Azteca plant remains a key component of Cadence's phased
redevelopment strategy at Amapá,

 

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

 

"Completion of the detailed engineering studies marks an important step in
moving Azteca towards refurbishment and recommissioning. The work programme is
now supported by an active procurement and mobilisation package, with
procurement requests already launched for critical refurbishment items and the
contractor team prepared for mobilisation."

 

"This is important because it moves Azteca beyond engineering readiness and
into practical execution planning, while adding flexibility to the critical
path as the remaining Installation Licence workstreams continue to progress.
Subject to permitting and execution, Azteca remains central to our phased
redevelopment strategy at Amapá, with commissioning targeted by the end of
June."

 

Azteca Plant Advancement

Following the grant of the Preliminary Licence announced on 6 January 2026,
Amapá has adopted a structured approach to progressing those activities at
Azteca that can be undertaken ahead of the main refurbishment programme.

 

The detailed mechanical and electrical engineering studies for the Azteca
Plant have now been completed. In parallel, the Azteca work programme is now
supported by an active procurement and mobilisation package, with critical
refurbishment items already requested and contractor mobilisation planning
aligned to the execution schedule.

 

Planned early activities include structural steel repairs, removal of motors,
pumps and other components for refurbishment, and procurement of long-lead
items required for recommissioning. Certain of these activities are scheduled
to commence in March. These activities fall within the scope of works
permitted before LI issuance, including maintenance, preservation, inspection,
component removal for off-site repair and long-lead procurement.

 

Together, these steps are intended to add flexibility to the critical path and
help preserve the current development timetable, with commissioning targeted
for the end of June, subject to receipt of the required permits and execution.

 

Installation Licence Progress

As previously outlined, following the grant of the Preliminary Licence ("LP")
announced on 6 January 2026, progression to the Installation Licence remains
subject to completion of defined technical and regulatory requirements. The
principal remaining items include: (i) archaeological clearance from the
Instituto do Patrimônio Histórico e Artístico Nacional ("IPHAN"), (ii)
water abstraction permitting, and (iii) tailings-related permitting to be
issued by the State of Amapá environmental authority, the Secretaria de
Estado do Meio Ambiente ("SEMA/AP").

 

Late last year, the Company submitted the archaeological report recommended by
the State IPHAN branch to Federal IPHAN. The report evaluates previously
identified archaeological locations and concludes that, in several cases, no
further study is required or that additional work is not possible due to
historic mining activity or areas now covered by legacy tailings or waste
material. The Company continues to engage constructively with Federal IPHAN as
part of the LI process.

 

With respect to the SEMA/AP workstreams, a technical inspection was conducted
recently, following which SEMA/AP requested a minor amendment to the relevant
application. That amendment has now been incorporated, submitted, and is being
reviewed by SEMA/AP.

 

Strategic Context

As previously announced, 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.

 

Cadence Ownership

As of the end of December 2025, Cadence's total investment in the Amapá
Project is approximately US$15.5 million, representing a 35.9% 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 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

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

Certain statements in this announcement are or may be deemed to be
forward-looking statements. Forward-looking statements are identified by
their use of terms and phrases such as "believe", "could", "should",
"envisage", "estimate", "intend", "may", "plan", "will", or the negative of
those variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the company's future growth, results of operations, performance,
future capital, and other expenditures (including the amount, nature, and
sources of funding thereof), competitive advantages, business prospects and
opportunities. Such forward-looking statements reflect the Directors' current
beliefs and assumptions and are based on information currently available to
the Directors.  Many factors could cause actual results to differ materially
from the results discussed in the forward-looking statements, including risks
associated with vulnerability to general economic and business conditions,
competition, environmental and other regulatory changes, actions by
governmental authorities, the availability of capital markets reliance on key
personnel uninsured and underinsured losses and other factors many of which
are beyond the control of the company. Although any forward-looking statements
contained in this announcement are based upon what the Directors believe to be
reasonable assumptions. The company cannot assure investors that actual
results will be consistent with such forward-looking statements.

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