Sonora Lithium Project Arbitration Funding

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	[phone]
Andrew Suckling
Kiran Morzaria
Zeus (NOMAD & Broker)	[phone]
James Joyce
Darshan Patel
Fortified Securities - Joint Broker	[phone]
Guy Wheatley
Brand Communications	[phone]
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.

 

END