Meridian Updates on Cabacal's Advancement Towards Final Investment Decision

Meridian Mining PLC (MNO) released a project-development update for its Cabaçal operation on 9 November 2026, marking the site’s entry into pre-construction. The announcement details the awarding of the Engineering, Procurement, Construction Management (EPCM) contract to AFRY, pre-construction commitments reaching USD 30.9 million, and strong interest from project-finance providers. Additionally, the company noted that early infrastructure, power, and workforce initiatives are advancing.

AFRY, which maintains a long operating history in Brazil with approximately 1,450 in-country professionals, will manage Cabaçal construction from Belo Horizonte. The release did not disclose AFRY’s separate contract value or fee structure.

Pre-construction spending has risen to USD 30.9 million in committed contracts covering EPCM services, power transformers, off-site bridges and road upgrades, a SAG mill, Jameson Cells, and IsaMill. This figure represents an increase from the USD 15.9 million in pre-construction commitments disclosed with the 22 September 2026 Definitive Feasibility Study (DFS) release.

Regarding power infrastructure, the planned 24.3 km, 138 kV line from the Araputanga substation has secured its Declaration of Public Utility and an Installation Licence for the line structures. The EPC contractor for the line, substation upgrade, and receiving substation remains in competitive bidding.

Project finance interest has been robust, with more than twenty indicative proposals received from debt providers, banks, funds, commodity traders, and export credit agencies. Multiple proposals exceed USD 300 million in debt, and several parties submitted fully financed indicative packages of USD 400 million. These packages cover project debt, cost-overrun funding, required equity contributions, and offtake or marketing services. Meridian is currently assessing these proposals to shortlist preferred bidders for detailed negotiation.

The company’s chief executive officer cited a treasury of approximately USD 90 million. This is the only liquidity figure provided in the current release. Contextual data from prior periods, not included in today’s update, indicates that cash stood at USD 95.98 million at 30 June 2026, total debt was nil, and H1 2026 operating cash outflow was USD 9.38 million.

The release reiterated figures from the 28 October 2026 DFS technical report, including a base-case after-tax NPV5 of USD 2.1 billion, an internal rate of return (IRR) of 108%, pre-production capital expenditure of USD 322 million, a payback period of 0.9 years, an all-in sustaining cost (AISC) of USD 1,056/oz AuEq, and average annual production of 183,526 oz AuEq for years 1-5.

All economics and commitments cited in the release are specific to the Cabaçal project. No company-wide production, revenue, or cash-flow guidance was provided.

Meridian Mining PLC (MNO) has released an update confirming the next steps in the Cabaçal development path, providing further detail on the selection of EPCM contractor AFRY, pre-construction financial commitments, and the depth of interest from project finance providers. The company has appointed AFRY, a necessary step prior to a final investment decision (FID), and has increased its committed pre-construction spending to USD 30.9 million.

Interest in project finance appears robust, with multiple proposals exceeding USD 300 million in debt. Several packages are described as fully funded at USD 400 million, a figure that includes overrun, equity, and offtake components. However, these finance proposals remain indicative. No preferred lender, term sheet, covenant package, cost, dilution, security package, hedge requirement, or offtake pricing has been disclosed, and no final investment decision has been taken.

Operational licensing also remains in progress. The mine Installation Licence is still pending; the confirmation received today applies only to power-line structures, not the full Cabaçal mine. Additionally, the power-line EPC contract is still being bid.

The company’s financial projections have evolved over recent studies. The March 2025 Preliminary Feasibility Study (PFS) framed Cabaçal at USD 984 million NPV5, 61.2% IRR, USD 248 million capex, and USD 742/oz AuEq AISC. The September 2026 Definitive Feasibility Study (DFS) lifted the project valuation to USD 2.1 billion NPV5 and 108% IRR on a larger reserve, while raising pre-production capex to USD 322 million and AISC to USD 1,056/oz AuEq. The current release does not alter those DFS figures but indicates the company is now deploying pre-construction capital and engaging lenders based on that larger project profile.

Market participants were already aware of Cabaçal’s advancement toward FID following releases in May, August, and September. Today’s update adds the AFRY award, the USD 30.9 million commitment level, and a more detailed description of fully funded finance interest to that existing context.

Meridian Mining PLC, listed on the LSE and TSX under the ticker MNO with additional trading lines on the OTCQX and in Germany, is a pre-revenue mineral development company. Its primary asset is the Cabaçal VMS gold-copper-silver project located in Mato Grosso, Brazil. The company is also conducting exploration at Santa Helena and across regional targets within the Cabaçal belt, as well as the Jauru and Araputanga greenstone belts.

The Cabaçal project has reached a DFS-complete, pre-construction stage. An October 2026 DFS technical report outlines a conventional open-pit mine and process plant with a 13.9-year life. The study identifies 56.04 Mt of proven and probable reserves grading 0.61 g/t Au, 0.35% Cu, and 1.33 g/t Ag. Average production for years 1-5 is estimated at 183,526 oz AuEq. The economic model utilizes gold at USD 3,570/oz, copper at USD 5.03/lb, and silver at USD 50.17/oz. The operation is designed to process 2.5 Mtpa, expanding to 4.5 Mtpa, featuring a low life-of-mine strip ratio of 1.4:1 and a dry-stack tailings facility.

According to the investor presentation, Cabaçal resources total approximately 70.1 Mt at 0.56 g/t Au, 0.33-0.34% Cu, and about 1.3 g/t Ag. A maiden resource at Santa Helena Central comprises 5.3 Mt at 0.6 g/t Au, 0.4% Cu, 15.5 g/t Ag, 1.9% Zn, and 0.4% Pb. The presentation cites a structured purchase agreement to acquire 100% of Cabaçal for USD 8.75 million in cash plus 4.5 million shares. Milestones 1-5 are complete, while milestones 6-7 remain pending.

Management and board disclosures identify Gilbert Clark as CEO and Bruce McLeod as Chair. The board includes proposed or elected Brazilian independent directors Carlos Vilhena and Felipe Holzhacker Alves, who bring mining-law and mining-finance experience, respectively. No analyst coverage, target prices, or consensus estimates are provided. The royalty status of Cabaçal cannot be determined from the available materials as no royalty terms are disclosed.