REG - Cadence Minerals PLC - Grant of Preliminary Environmental Licence - Amapá

Cadence MineralsAnnouncement

06/01/2026 07:00

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RNS Number : 7127N  Cadence Minerals PLC  06 January 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")

 

Grant of Preliminary Environmental Licence - Amapá Iron Ore Project

 

Highlights

·      Major regulatory milestone achieved with the grant of Preliminary
Environmental Licence ("LP") for the Amapá mine

·      LP confirms environmental feasibility for the full mine capacity
of 5.5 Mtpa of DR-grade iron ore concentrate

·      Approval covers the entire mine development envelope, including
the Azteca processing plant, enabling progression toward first-stage
refurbishment and production

·      Represents a material de-risking event and establishes a clear
regulatory pathway toward construction and production

·      Installation Licence requirements are advancing as planned,
supporting continued momentum toward refurbishment and production

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

 

"This is a highly significant regulatory milestone for Amapá. The grant of
the Preliminary Licence confirms environmental acceptance of the mine at its
full intended scale and marks a decisive step forward in the project's
redevelopment.

 

Importantly, the LP validates the complete mine plan and provides the
regulatory foundation to advance the Azteca processing plant as the first step
toward production. With this key de-risking milestone achieved, our focus now
turns to securing the Installation Licence and progressing refurbishment
activities in line with our staged development strategy.

 

The remaining Installation Licence requirements are advancing well, and we
remain on track as we move the Project toward refurbishment and production."

 

Regulatory Update

Cadence Minerals plc (AIM: KDNC) ("Cadence" or the "Company") is pleased to
announce that the State of Amapá environmental authority, the Secretaria de
Estado do Meio Ambiente ("SEMA/AP"), has granted a Licença Prévia ("LP") for
the Amapá mine in Brazil (the "Project").

 

The LP confirms the environmental feasibility, location and design of the mine
at its full planned capacity of 5.5 million tonnes per annum ("Mtpa") of
DR-grade iron ore concentrate. The approval covers open-pit mining, mineral
processing, waste rock handling and associated tailings storage infrastructure
across the Project's existing mining concessions.

 

Notably, the LP applies to the whole mine development plan and is not limited
to an initial or interim operating phase, providing regulatory confirmation
for the long-term mine configuration underpinning the Company's staged
redevelopment strategy.

The LP also provides the regulatory foundation for permitting the Azteca
processing plant, which forms part of the mine complex and is intended to be
recommissioned as the initial production facility within the staged
redevelopment sequence. Ore produced during the Azteca restart phase is
expected to be transported by road and shipped through an existing public port
facility and therefore does not require completion of the rail and private
port licensing for initial production.

 

Regulatory Significance

The LP represents the first statutory stage of Brazil's environmental
licensing process for the mine and marks a material de-risking milestone for
the Project. The next stage is the Installation Licence (Licença de
Instalação - "LI"), which authorises construction, refurbishment and
installation of mine infrastructure, including processing facilities and
tailings structures.

 

Pathway to Installation Licence

Progression to the LI remains subject to completion of defined technical and
regulatory requirements, consistent with matters previously disclosed by the
Company. The principal outstanding items include:

 

•      submission of supplementary technical studies requested by
regulators, including archaeological and engineering works, with
archaeological studies now completed and submitted to the Instituto do
Patrimônio Histórico e Artístico Nacional ("IPHAN"), Brazil's federal
authority for cultural heritage; and

•      completion of water abstraction and effluent discharge
authorisations.

 

These workstreams are advancing in parallel, and the Company continues to
engage constructively with the relevant authorities as part of the LI process.

 

The LI represents the key permitting gateway for commencement of refurbishment
and installation works at the mine, including the Azteca processing plant, and
for execution of the Company's staged development strategy.

 

Strategic Context

The grant of the LP confirms regulatory alignment for the full mine capacity,
underpins the near-term recommissioning of the Azteca processing plant, and
establishes a clear, structured and de-risked pathway toward refurbishment and
production, subject to receipt of the Installation Licence.

 

The railway and port components of the wider Amapá Iron Ore Project continue
to progress through their respective licensing processes, as previously
disclosed.

 

Cadence will continue to work closely with its partners and the relevant
authorities to advance all components of the Project through their respective
permitting pathways in accordance with Brazilian law.

 

Cadence Ownership

As of the end of June 2025, Cadence's total investment in the Amapá Project
is approximately US$15.5 million, representing a 35.7% equity stake in the
Project.

 

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, the fully funded Azteca processing
plant is planned 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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