Cadence Minerals plc (AIM: KDNC) has announced that DEV Mineração S.A., the owner and operator of the Amapá Iron Ore Project in Brazil, has received the Operating Licence for the Azteca processing plant from the Amapá State Environmental Secretariat (SEMA/AP). Production has commenced at a reduced rate, with full-rate operation expected approximately two weeks after the US$1.15 million working capital tranche is received. The licence satisfies the final condition required to unlock that funding under the existing prepayment offtake facility, with DEV targeting a first shipment of iron ore concentrate before the end of 2026.

Key Points

  • Cadence Minerals plc (AIM: KDNC) holds a 36.2% equity interest in Pedra Branca Alliance Pte Ltd, which owns 100% of DEV, operator of the Amapá Iron Ore Project
  • SEMA/AP has issued a five-year Operating Licence to DEV for iron ore processing at the Azteca plant, valid for five years and renewable on application
  • The licence unlocks the remaining US$1.15 million working capital tranche from the US$4.6 million prepayment offtake facility; full-rate production expected approximately two weeks after receipt
  • Investors should watch for confirmation of working capital drawdown, assay results, bridge completion, and the first shipment of approximately 45,000 to 48,000 wet tonnes

SEMA/AP Issues Five-Year Operating Licence for Azteca Iron Ore Processing Plant

The Operating Licence, issued by SEMA/AP on the basis of commissioning and compliance reports filed by DEV on 29 October 2026, authorises iron ore processing by physical concentration at the Azteca plant, including use of the Mário Cruz tailings dam. It is valid for five years and renewable on application before expiry. The licence completes the Preliminary, Installation and Operating Licence sequence for Azteca. Standard conditions include a consolidated commissioning report within 30 days, half-yearly geotechnical and structural monitoring, monthly water sampling, and annual community and rehabilitation reports, all of which the announcement states form part of DEV's existing compliance programme.

US$1.15 Million Working Capital Tranche Unlocked as DEV Commences Reduced-Rate Production

The Azteca restart has been funded under the US$4.6 million prepayment offtake facility announced on 9 September 2025. Of that total, US$3.45 million has already been advanced to cover licensing, tailings dam work, refurbishment and recommissioning. The remaining US$1.15 million working capital tranche, now unlocked by the Operating Licence and commencement of production, will fund the mobilisation of heavy mining equipment and operating personnel to bring the plant to full rate. DEV expects full-rate operation approximately two weeks after those funds are received. Repayment is deducted per tonne of concentrate delivered from sale proceeds, with Cadence receiving its proportion of repayments and the marketing fee.

First Shipment of 45,000–48,000 Wet Tonnes Targeted Before End of 2026

DEV's production target remains approximately 380,000 tonnes per annum of approximately 65% Fe concentrate, based on design-grade feed of approximately 48% Fe. Approximately 2,800 wet tonnes of concentrate produced during commissioning is stockpiled on site and is intended to form part of the first cargo, subject to assay results. Four major contracts support full operation: heavy mobile equipment and operating personnel contracts are expected to be finalised in the coming days, while haulage and port-handling contracts are described as at an advanced stage. The on-site XRF laboratory is expected to be operational by the end of November 2026.

Azteca Cash Flow Intended to Fund Definitive Feasibility Study for Larger Amapá DR Project

Cadence's total investment in the Amapá Project stood at approximately US$16.1 million as at 31 May 2026. The Amapá DR Iron Ore Project hosts a JORC-compliant Mineral Resource of 276.2 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 3 December 2024 indicated a post-tax NPV of US$1.97 billion. Cash generated by Azteca after operating needs and funding obligations is intended to advance the Definitive Feasibility Study, planned to commence in 2027, alongside Preliminary Licences for the port and railway. The larger redevelopment remains subject to further technical studies, financing and regulatory approvals.