Meridian Mining plc (LON:MNO) (TSX: MNO) has reported on the advancement towards the Final Investment Decision of the Cabaçal gold, copper and silver project in Mato Grosso, Brazil. AFRY, an international leader in engineering, project management, and advisory services, has been awarded Cabaçal’s Engineering, Procurement, and Construction Management contract. Meridian is also advancing the selection of Cabaçal’s project finance partner(s) after receiving numerous indicative financing proposals which include several fully funded proposals. The Company is also reporting that orders for long-lead items are placed, and off-site access upgrades are on track for 2026.
Mr. Gilbert Clark, CEO, comments: “We are advancing towards Cabaçal’s FID and welcome AFRY as our EPCM contractor. AFRY’s Brazilian team have built and expanded many Brazilian mines over the last 50 years, and we look forward to their input as we bring into production one of South America’s most watched mine developments. To build Cabaçal, we need to arrange project finance, and this has been in planning since 2024. I am not surprised by the strength of the project finance indicative proposals received from the various financial, trading, and industrial groups involved in the process. The project’s economics and the exceptional quality of its Cu+Au-Ag concentrates have created serious interest. Having a strong treasury of ~USD 90 million puts Meridian in a healthy position to move Cabaçal forward and select the right partners as we move from developer to producer while expanding our copper and gold exploration programmes.”
Appointment of EPCM Contractor
The Company has appointed AFRY as the EPCM contractor for Cabaçal, after a thorough assessment process, including extensive technical due diligence. AFRY’s project construction management strength was a key factor in its selection. It continues to be Meridian’s priority to maximise Brazilian content in Cabaçal’s build and AFRY has been operating in Brazil since 1969 and today has approximately 1,450 professionals in-country, supported by a global organisation of around 18,000 professionals with a combined history dating back to 1895.
AFRY’s recent Brazilian clients, for which it has provided various engineering and construction services, include Aura Minerals, Nexa Resources (in Mato Grosso), Hochschild Mining and Ero Copper. AFRY’s active portfolio covers a broad range of industries, including mining and metals, pulp and paper, pharmaceuticals, biofuels, and consumer goods. Brazilian assignments include Arauco, Novo Nordisk, Acelen, Grupo Boticário, CBMM, AngloGold Ashanti, and Vale.
AFRY’s current operations in Brazil are the result of various acquisitions over the years and from the combination of its and Poyry’s global business in 2019. The most recent acquisition by AFRY in Brazil was Reta Engenharia, in July 2025. With Reta Engenharia, a Brazilian company specialized in project construction management founded in 1995 in Belo Horizonte, the combined AFRY-Reta business is a major player in the Brazilian mining and metals engineering market. For the EPCM process, Meridian’s build team will be operating out of AFRY’s Belo Horizonte office.
Project Development Update
The Company has committed to contracts totalling USD 30.9 million for pre-construction investments on multiple fronts including the EPCM contract, power transformers, off-site civil infrastructure (bridges and road upgrades), a SAG mill, Jameson Cells, and an IsaMill. To manage these activities, Meridian has expanded its “owner’s team” to thirteen professionals, and additional management, engineering and technical personnel will be recruited in due course.
As outlined in the feasibility study, a 138 kV power line, spanning 24.3 km, will be constructed, originating from the Araputanga substation – the designated connection point to the national grid – to the Cabaçal site. The Declaration of Public Utility, which authorises the installation of structures along the line’s route, has been secured, as has the Installation Licence for these structures. The Company is currently managing a competitive bidding process to select an EPC (Engineering, Procurement, and Construction) contractor for the construction of the power line. The scope of work includes upgrading the connection substation, constructing the power line, and building the receiving substation at the Cabaçal plant.
A key part of Meridian’s ramp-up towards FID, construction and then operation is sourcing future employees from Cabaçal’s local communities. With our partner FIEMT (Federação das Indústrias no Estado de Mato Grosso), through SENAI (Serviços Nacional de Aprendizagem Industrial), a technical college, is being established in São José dos Quatro Marcos that will be used to train future employees. During peak construction, it is projected that over one thousand three hundred people will be required, and during mining operations, more than six hundred people will be needed.
Project Finance Update
The Company has completed an initial outreach programme to various debt providers, banks, funds, commodity traders and export credit agencies. The Company has received over twenty indicative proposals with multiple proposals over USD 300 million in debt financing. Several parties have provided fully financed indicative proposals of USD 400 million, covering project debt, cost overrun funding, and any required equity contribution and off-take and marketing services.
Based on Cabaçal’s DFS Technical Report (as defined below), the indicative proposals received from these groups provide Cabaçal with a strong selection of financing options. The Company is currently assessing the proposals to generate a short list of preferred bidders for detailed negotiations.
