Meridian Mining plc (LSE: MNO) has announced that its Cabaçal gold, copper and silver project in Mato Grosso, Brazil has entered the pre-construction phase, with engineering firm AFRY awarded the EPCM contract. The company has committed to pre-construction contracts totalling USD 30.9 million, covering critical infrastructure including a SAG mill, Jameson Cells, an IsaMill, and off-site civil works. Additionally, Meridian reports receiving fully funded indicative financing proposals of USD 400 million, reinforcing the project's financial momentum ahead of a formal Final Investment Decision.

Key Points

  • Meridian Mining plc (LSE: MNO, TSX: MNO, OTCQX: MRRDF)
  • AFRY awarded EPCM contract for the Cabaçal copper-gold-silver project in Mato Grosso, Brazil
  • Pre-construction commitments exceed USD 30.9 million; DFS outlines USD 2.1 billion NPV5 and 108% IRR; company treasury stands at approximately USD 90 million
  • Investors may be watching the selection of a preferred project finance partner and the timing of the formal Final Investment Decision

AFRY Appointed as EPCM Contractor for Cabaçal Following Competitive Due Diligence Process

Meridian has selected AFRY, an international engineering and project management firm, as EPCM contractor for Cabaçal following extensive technical due diligence. AFRY has operated in Brazil since 1969 and currently employs approximately 1,450 professionals in-country, backed by a global workforce of around 18,000. The firm's recent Brazilian mining clients include Aura Minerals, Nexa Resources, Hochschild Mining, and Ero Copper. AFRY's 2025 acquisition of Belo Horizonte-based Reta Engenharia, a construction management specialist founded in 1995, was noted in the announcement as strengthening AFRY's Brazilian mining and metals capabilities. Meridian's build team will operate from AFRY's Belo Horizonte office.

Cabaçal Pre-Construction Commitments Reach USD 30.9 Million as Infrastructure Work Advances

The announcement states that Meridian has contracted USD 30.9 million across multiple pre-construction workstreams, including power transformers, a SAG mill, Jameson Cells, an IsaMill, and upgrades to bridges and road access. A 138 kV power line spanning 24.3 km, connecting the Araputanga substation to the Cabaçal site, has secured both its Installation Licence and access agreements for easements. A competitive tender is under way to select an EPC contractor for the power line's construction. Meridian has also expanded its owner's team to thirteen professionals, with further technical recruitment planned, and is establishing a SENAI technical college in São José dos Quatro Marcos to train future site employees.

Fully Funded USD 400 Million Financing Proposals Received as Cabaçal's DFS Reports USD 2.1 Billion NPV5

Meridian's Definitive Feasibility Study, effective 15 September 2026, outlines an after-tax NPV5 of USD 2.1 billion and an IRR of 108%, based on pre-production capital expenditure of USD 322 million and capital repayment projected within 0.9 years. The company reports receiving over twenty indicative financing proposals, with several fully funded offers totalling USD 400 million, covering project debt, cost overrun funding, equity contributions, and off-take services. The company states its treasury stands at approximately USD 90 million. Meridian is currently shortlisting preferred bidders from the proposals received for detailed negotiations.

Cabaçal Reserve Base and Production Profile Underpin Lender and Off-Take Interest

Cabaçal's Proven and Probable mineral reserves stand at 56.04 million tonnes grading 0.61 g/t gold, 0.35% copper, and 1.33 g/t silver. The DFS projects average annual production of 183,526 ounces of gold equivalent during mining years one to five, supported by an all-in sustaining cost of USD 1,056 per ounce gold equivalent and a low life-of-mine strip ratio of 1.4:1. The announcement notes that the high-quality copper, gold, and silver concentrates produced have attracted interest from both commodity traders and smelters. During peak construction, the project is projected to require over 1,300 workers, with more than 600 needed during operations.