Meridian Mining (TSX: MNO; LSE: MNO) is weighing indicative financing packages of $400 million (C$565 million) as it begins pre-construction work at its Cabaçal copper-gold project in Brazil’s Mato Grosso state.
The company received more than 20 proposals, including several offering more than $300 million in debt. Several $400-million packages cover project debt, cost overruns, any required equity contribution, and offtake and marketing services, Meridian said Monday.
“To build Cabaçal, we need to arrange project finance, and this has been in planning since 2024,” CEO Gilbert Clark said. “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.”
Cabaçal’s September feasibility study put initial capital costs at $322 million. Meridian, which reported a treasury of about $90 million, is shortlisting preferred financing bidders for detailed negotiations before a final investment decision.
Early works
Meridian has committed to $30.9 million in pre-construction contracts, including an engineering, procurement and construction management agreement with AFRY. Other commitments cover power transformers, bridge and road upgrades, a semi-autogenous grinding mill, Jameson flotation cells and an IsaMill for fine grinding.
Cabaçal lies about 320 km west-northwest of Mato Grosso’s capital, Cuiabá. Meridian has secured an installation licence and a declaration of public utility for a planned 24.3-km, 138-kilovolt power line linking the site to the Araputanga substation and Brazil’s national grid.
The company is selecting a contractor to build the line, upgrade the connection substation and construct the receiving substation at Cabaçal.
Peak construction is expected to require more than 1,300 workers, with more than 600 needed during operations. Meridian aims to recruit locally and is working with Mato Grosso’s industry federation, FIEMT, and industrial training provider SENAI to establish a technical college in São José dos Quatro Marcos.
Study economics
The feasibility study outlined an after-tax net present value of $2.09 billion at a 5% discount rate, a 108% internal rate of return and a 0.9-year payback. Its base case uses gold at $3,570 per oz., copper at $5.03 per lb. and silver at $50.17 per ounce.
Cabaçal has reserves of 56.04 million proven and probable tonnes at 0.61 gram gold per tonne, 0.35% copper and 1.33 grams silver, containing 1.11 million oz. gold, about 430 million lb. copper and 2.39 million oz. silver, as of Dec. 31, 2025.
Meridian shares traded 2.8% weaker at C$1.73 apiece in Toronto on Tuesday morning, valuing the company at about C$845 million. The stock has traded between C$1.26 and C$2.50 over the past 12 months.
Source: www.northernminer.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
