Highlights

• Cadence Minerals announced on 10 November 2026 that the Azteca plant has been granted its operating licence.

• A US$4.6 million prepayment and Working Capital Facility underpins the plant's licensing, restart and first shipment.

• Facility repayments are linked to tonnes shipped, with Cadence collecting its pro-rata share based on contributions.

• The December 2025 agreement targeted first production and shipment within three months of licence issuance.

For months, one document stood between Cadence Minerals (LSE:KDNC) and a working iron ore plant in Brazil. On 10 November 2026, the AIM-quoted investor announced that the Azteca operating licence had been granted, moving its staged plan for the Amapá iron ore project into a new phase.

The licence at the heart of the restart

Azteca sits at the centre of Cadence's staged approach to bringing Amapá back into production. The company works on the project with joint venture partners Pedra Branca Alliance Pte Ltd (PBA) and DEV Mineração S.A. (DEV). Through 2026, Cadence issued a run of Azteca restart, execution and refurbishment updates, and the operating licence marks the next regulatory milestone in that sequence.

How the funding was structured

In December 2025, Cadence, PBA and DEV signed a binding prepayment offtake agreement with an offtaker that was not named. The facility totals US$4.6 million. Of this, US$3.45 million was earmarked to complete licensing, refurbishment and commissioning of the plant, with US$1.15 million of working capital for logistics and the first shipment. The working capital becomes available once first production has commenced.

Repayment is made per tonne of iron ore shipped. Cadence receives its pro-rata share of repayments and Marketing income based on its contribution, and marketing arrangements continue on any product shipped above one million tonnes. The company (LSE:KDNC) said at the time that no further capital was needed from Cadence to bring the plant into production.

Why Azteca matters for Amapá

Chief executive Kiran Morzaria described the December agreement as "a major milestone in our staged approach to bringing Amapá back into production." The December 2024 pre-feasibility study for Amapá outlined output of 5.5 million tonnes a year of 67.5% Fe direct-reduction-grade concentrate and a post-tax NPV10 of US$1.97 billion.

Cadence's interest was stated as 35.7% at the time of the December 2025 agreement. Its shares are quoted on AIM and not on any other exchange.

Timelines and risks

The December 2025 agreement targeted first production and shipment within three months of licence issuance. Meeting that window depends on plant ramp-up and logistics. Iron ore prices, plant performance and offtake execution are further variables, and repayment of the facility relies on tonnes actually shipped.

What investors may watch next

For followers of UK Mining shares and AIM stocks, the next markers for LSE:KDNC are confirmation of production rates, release of the working capital Tranche and the first shipment of concentrate from Azteca. Progress on the wider Amapá project, where an installation licence was granted in May 2026, is also likely to stay in view.