REG - Cadence Minerals PLC - Amapá – Installation Licence Granted

Cadence MineralsAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260505:nRSE9096Ca&default-theme=true

RNS Number : 9096C  Cadence Minerals PLC  05 May 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 - Installation Licence Granted

 

Key regulatory approval unlocks approved site works and advances fully funded
Azteca restart toward production, cash flow and the broader Amapá development
pathway.

 

Cadence Minerals plc (AIM: KDNC) is pleased to announce that DEV Mineração
S.A. ("DEV"), owner and operator of the Amapá Iron Ore Project in Brazil
("Amapá" or the "Project"), has received the Installation Licence from the
State of Amapá Environmental Authority, Secretaria de Estado do Meio Ambiente
("SEMA/AP").

 

The Installation Licence ("LI") authorises refurbishment, construction and
installation works within its scope at the Amapá site, including those
required for the restart of the Azteca Plant ("Azteca") and the larger
US$1.9bn NPV Amapá Project. This represents a key transition for the Project
from planning and permitting into execution.

 

The immediate operational focus remains the restart of Azteca as a low-capital
reprocessing operation, intended to provide the first operating platform and
near-term cash flow for Amapá.

 

Highlights

• Installation Licence granted: DEV has received Installation Licence No.
006/2026 from SEMA/AP, enabling approved works at the Amapá site.

• Execution gateway: Azteca now moves from engineering, funding and
regulatory preparation into site mobilisation and delivery.

• Azteca restart in focus: The initial phase targets the processing of
partly processed material to establish operations and early cash flow.

• Fully funded restart pathway: The binding US$4.6 million prepayment
offtake facility provides funding for licensing, refurbishment, commissioning
and initial working capital.

• Cash-flow platform: Subject to successful commissioning and operation,
Azteca is expected to generate early cash flow to support working capital,
ongoing operations and the funding of the DFS.

• Broader development retained: The LI also supports the staged pathway
toward the larger 5.5 Mtpa DR-grade Amapá Project, which remains subject to
further studies, financing and operating licenses.

 

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

"The grant of the Installation Licence is a major milestone for DEV and for
Amapá. It marks the transition of the Project into its next phase - from
preparation into approved execution and then production.

 

Azteca is positioned as the practical first step in bringing Amapá back into
production. It is supported by a fully funded structure, benefits from
existing plant, and is designed to establish the initial cash-flow platform
for the wider Project.

 

Our focus is now on disciplined delivery - mobilisation, procurement, licence
compliance, refurbishment and commissioning.

 

On behalf of Cadence, I would like to congratulate the DEV team, our JV
partners and advisers for their continued focus and execution, and to
recognise the efficiency and constructive engagement of SEMA and the State of
Amapá in advancing this important regulatory milestone. Azteca provides a
clear pathway to near-term production and cash flow, while supporting the
longer-term development of the Amapá Project and the enduring benefits it can
bring to the State."

 

Installation Licence

DEV has received Installation Licence No. 006/2026 from SEMA/AP. The LI
authorises approved installation works within its scope at the Amapá site,
including refurbishment and replacement of existing operational structures,
construction of new processing components (including magnetic separation, ball
mill and screening circuits), and associated site infrastructure.

 

The licence is subject to conditions including environmental management,
monitoring and reporting obligations, and health, safety and site-management
requirements during the works programme. The LI does not replace or remove the
requirement for any additional licences or consents that may be required under
federal, state or municipal legislation, such as the Termo de Ajustamento de
Conduta with Instituto do Patrimônio Histórico e Artístico Nacional. DEV
will continue to manage all approvals in accordance with applicable statutory
processes.

 

Azteca Execution Plan

Detailed mechanical and electrical engineering has been completed, and the
refurbishment execution programme is in place. Certain preparatory activities
were undertaken within the scope permitted prior to LI issuance; the LI now
enables the wider approved refurbishment, construction and installation
programme.

 

DEV is progressing into mobilisation and execution for the approved works.
Initial activities will focus on contractor mobilisation, sequencing of work
programmes, activation of funding drawdowns and commencement of approved works
in accordance with licence conditions and applicable environmental, health and
safety requirements.

 

Operating Licence and Timetable

Following completion of the approved works and commissioning activities, DEV
will progress the Operating Licence ("LO") process required for commercial
operations and shipments at Azteca.

 

The LO process is expected to be principally focused on demonstrating
satisfaction of the applicable LI conditions and implementation of the
approved environmental control measures, rather than a new project design
approval process.

 

Subject to licence-condition compliance, execution progress and receipt of the
LO, commissioning remains targeted for the end of June 2026. The Company will
update shareholders should there be any material variation to this timetable.

 

Funding Structure

As previously announced, the Azteca restart is supported by a binding US$4.6
million prepayment and working capital facility provided by Cadence and its
offtake partner.

 

The facility comprises approximately US$3.45 million allocated to licensing,
refurbishment and commissioning activities, together with approximately
US$1.15 million of working capital to support logistics and the first
shipment.

 

With the grant of the LI, the remaining funds from the US$3.45 million is
available to support the approved works programme. The working capital
component becomes available upon commencement of production and is intended to
support logistics and the first shipment.

 

Repayment of the facility is linked to future iron ore shipments, aligning
funding with operational cash flow generation. As previously disclosed, the
structure is intended to fund the full restart of Azteca, with no further
equity currently expected to be required from Cadence to bring the plant into
production.

 

Strategic Context

Azteca remains Cadence's near-term operational focus within its staged
redevelopment strategy. Subject to successful commissioning and operation,
Azteca is expected to provide an initial operating platform and near-term cash
flow, supporting ongoing operations and the advancement of the broader
development pathway, including the DFS and early-stage works for the 5.5 Mtpa
DR-grade project.

 

The broader Amapá development remains a longer-term pathway subject to
further technical studies, financing, construction planning and regulatory
approvals. Cadence will provide further updates as material milestones are
achieved.

 

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 Amapá

Amapá is formed of two distinct developments: the Azteca Project, and the
larger Amapá Iron Ore Project.

 

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

 

The much larger 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.

 

 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

 

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. 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.

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCBIGDUUSGDGLS



            Copyright 2019 Regulatory News Service, all rights reserved