Cadence Minerals PLC
29 July 2026
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The company deems the information contained within this announcement to constitute Inside Information as stipulated under the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK 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
ICSID Arbitration Formally Registered
Cadence Minerals plc (AIM: KDNC) announces that the International Centre for Settlement of Investment Disputes ("ICSID") has formally registered a Request for Arbitration filed by Cadence and its wholly owned subsidiary, REM Mexico Limited ("REM Mexico"), against the United Mexican States ("Mexico") under the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United Mexican States, which was signed on 12 May 2006 and entered into force on 25 July 2007 ("UK-Mexico BIT").
The proceeding has been registered as Cadence Minerals Plc and REM Mexico Limited v. United Mexican States under ICSID Case No. ARB/26/36. The arbitration now moves to the constitution of the tribunal.
Highlights
· ICSID arbitration formally commenced: Cadence and REM Mexico's claim against the United Mexican States has been registered as ICSID Case No. ARB/26/36, marking the formal commencement of an international arbitration between Cadence and REM Mexico and Mexico.
· Tribunal constitution is the next step: The Parties will now proceed with the appointment of a three-member arbitral tribunal to hear Cadence and REM Mexico's claims.
· Cadence's and REM Mexico seek compensation for Mexico's conduct in relation to the Sonora Project: Cadence and REM Mexico's claims relate to the cancellation by Mexico of the concessions comprising the Sonora Project and the resulting destruction of the value of Cadence and REM Mexico's investments, which violated Mexico's obligations under the UK-Mexico BIT, including the prohibition on unlawful expropriation, and Mexico's obligations to accord fair and equitable treatment and full protection and security to Cadence and REM Mexico and not to discriminate against them.
· Non-recourse funding supports the proceedings: Dedicated litigation funding from Litigation Capital Management ("LCM") is in place to finance the legal fees and disbursements associated with the arbitration, preserving Cadence's balance sheet flexibility.
Kiran Morzaria, Chief Executive Officer of Cadence Minerals, commented:
"Our objective is clear: we are seeking compensation for Mexico's conduct in breach of the UK-Mexico treaty, which destroyed Cadence's investments in the Sonora Project.
We are ably supported by an experienced specialist international arbitration team from Clifford Chance, and the claim is funded on a non-recourse basis, which will allow us to pursue the case without diverting capital from Cadence's wider portfolio.
"We will remain disciplined, focus on execution and report material developments as the proceedings advance. It is disappointing that we have been left with no option but to seek compensation from Mexico by recourse to international arbitration. However, we are confident that we will ultimately secure a successful outcome."
Background to the arbitration
Cadence first invested in the Sonora Lithium Project in 2013. Cadence and REM Mexico hold a 30% interest in Mexilit S.A. de C.V. and Minera Megalit S.A. de C.V., which held seven of the nine concessions forming part of the Sonora Project until Mexico cancelled all nine concessions in August 2023. It is the cancellation of those concessions and related conduct by Mexico for which Cadence and REM Mexico are challenging in the arbitration.
In particular, Mexico's conduct breached its obligations under the UK-Mexico BIT, including those relating to:
· unlawful nationalisation or expropriation;
· fair and equitable treatment and full protection and security; and
· national treatment and most-favoured nation treatment.
Cadence and REM Mexico are seeking compensation and other relief in respect of these breaches of the UK-Mexico BIT.
There can be no certainty as to the outcome, duration or level of any recovery from the arbitration.
Next steps in the arbitration
The next stage is the constitution of the three-member arbitral tribunal. Each party will appoint one arbitrator, with the parties then seeking to agree on the tribunal chair.
Once constituted, the tribunal will establish the procedural timetable for the proceeding. Cadence will report further material developments as appropriate.
Arbitration funding
As announced on 24 March 2026, LCM is providing non-recourse finance for the arbitration.
LCM will fund legal fees and disbursements arising in connection with the arbitration. If the claims do not succeed and no recovery is made, Cadence and REM Mexico are not required to repay the funded amounts, subject to the agreement.
This enables the arbitration to proceed without diverting capital from Cadence's wider portfolio.
Notwithstanding the arbitration, Cadence and REM Mexico remain open to a negotiated resolution with Mexico.
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For further information, contact: |
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Cadence Minerals plc |
+44 (0) 20 3582 6636 |
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Andrew Suckling |
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Kiran Morzaria |
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Zeus (NOMAD & Broker) |
+44 (0) 20 3829 5000 |
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James Joyce |
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Darshan Patel Chris Wardley |
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Fortified Securities - Joint Broker |
+44 (0) 20 3411 7773 |
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Guy Wheatley |
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Public & Investor Relations - Brand Communications |
+44 (0) 7976 431608 |
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Alan Green |
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Cautionary and Forward-Looking Statements
This announcement contains forward-looking statements. Such statements are based on the current expectations, assumptions and beliefs of the Directors and are subject to known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future performance and may often be identified by words such as "believe", "expect", "intend", "may", "plan", "should", "will", "could" and similar expressions. Actual results may differ materially from those expressed or implied by such statements due to a range of factors, many of which are outside the control of the Company, including changes in economic conditions, market conditions, regulatory developments, the actions of governmental authorities, the availability of funding and other risks affecting the Company's operations. Readers should not place undue reliance on forward-looking statements, which speak only as at the date of this announcement. Except as required by law or applicable regulation, the Company undertakes no obligation to update or revise any forward-looking statements.
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