REG - Cadence Minerals PLC - Sonora Lithium Project Arbitration Funding

Cadence MineralsAnnouncement

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RNS Number : 9830X  Cadence Minerals PLC  25 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")

 

Sonora Lithium Project

Arbitration Funding Confirmation Notice

 

Cadence Minerals plc (AIM: KDNC) ("Cadence") is pleased to announce that LCM
Funding SG Pty Ltd ("LCM" or the "Funder") has completed due diligence and
issued a Funding Confirmation Notice ("FCN") under the Arbitration Funding
Agreement ("AFA") entered into between LCM, Cadence and Cadence's wholly owned
subsidiary, REM Mexico Limited ("REM Mexico"), regarding claims arising in
relation to Cadence and REM Mexico's investments in the Sonora Lithium Project
in Sonora State, Mexico. With funding secured, Cadence and REM Mexico intend
to commence international arbitration against the United Mexican States under
the agreement between the Government of the United Kingdom of Great Britain
and Northern Ireland and the Government of the United Mexican States for the
Promotion and Reciprocal Protection of Investments ("UK-Mexico BIT").

 

Following LCM's issuance of the FCN, non-recourse litigation financing is now
available to Cadence and REM Mexico, subject to the terms of the AFA, to
support Cadence and REM Mexico in pursuing their claims under the UK-Mexico
BIT. Under the signed arrangements, LCM has agreed to pay Cadence and REM
Mexico's legal fees and disbursements in accordance with an agreed budget on a
non-recourse basis.

 

Highlights

·    FCN issued by LCM following completion of LCM's due diligence in
relation to Cadence and REM Mexico's claims against Mexico under the UK-Mexico
BIT.

·    Non-recourse litigation funding now available to support Cadence and
REM Mexico's legal claims in relation to their investments in the Sonora
Lithium Project in accordance with an agreed budget and the terms of the AFA.

·    Cadence believes this funding materially strengthens its ability to
pursue its legal claims in relation to the Sonora Lithium Project in a
well-resourced manner, while preserving corporate balance sheet flexibility.

 

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

"We are pleased that LCM has completed its due diligence and issued the
Funding Confirmation Notice in relation to Cadence and REM Mexico's legal
claims regarding the Sonora Lithium Project. This is an important milestone as
it provides dedicated non-recourse funding to support the advancement of the
claims.

 

The measures that Mexico took against our interests in the Sonora Lithium
Project breached the protections afforded to us under the UK-Mexico BIT. This
funding materially strengthens our ability to pursue the arbitration in an
appropriately resourced manner, while preserving balance sheet flexibility and
supporting our objective of protecting shareholder value and seeking
appropriate redress.

 

Cadence and REM Mexico's legal claims under the UK-Mexico BIT

Cadence and REM Mexico's claims arise from measures taken by the United
Mexican States that destroyed the value of Cadence and REM Mexico's
investments in the Sonora Lithium Project. In particular, those measures
include the cancellation of the mining concessions in which Cadence and REM
Mexico held a significant interest against the backdrop of Mexico's
nationalisation of its lithium sector. Those measures breached protections
owed by Mexico to Cadence and REM Mexico and their investments in Mexico under
the UK-Mexico BIT, including protections against unlawful expropriation and
unfair, arbitrary or discriminatory treatment.

 

Cadence and REM Mexico have previously approached the Mexican Government to
seek consultations and negotiations under the UK-Mexico BIT and now intend to
pursue their claims in international arbitration to protect the value of their
investments and seek appropriate redress. Notwithstanding, Cadence and REMML
remain open to a negotiated settlement with Mexico.

 

Arbitration Funding Agreement

Under the AFA, sums advanced by LCM are made available on a non-recourse
basis, such that Cadence and REM Mexico are under no obligation to repay those
sums if their legal claims do not succeed and no recovery is made.

 

 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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