Investing.com | 25 March 2026
Cadence Minerals secures funding for Mexico arbitration case
Cadence Minerals plc (AIM:KDNC) announced that LCM Funding SG Pty Ltd has issued a Funding Confirmation Notice after completing due diligence on the company’s arbitration claims related to the Sonora Lithium Project in Mexico, according to a press release statement.
The funding arrangement enables Cadence and its subsidiary REM Mexico Limited to commence international arbitration against the United Mexican States under the UK-Mexico bilateral investment treaty. LCM will pay legal fees and disbursements on a non-recourse basis, meaning Cadence and REM Mexico have no obligation to repay if the claims are unsuccessful.
The claims arise from Mexico’s cancellation of mining concessions in which Cadence and REM Mexico held interests, occurring alongside Mexico’s nationalization of its lithium sector. The companies assert these actions breached protections under the UK-Mexico treaty, including protections against unlawful expropriation and unfair treatment.
Cadence previously approached the Mexican government seeking consultations and negotiations under the treaty. The company stated it remains open to a negotiated settlement with Mexico.
Chief Executive Officer Kiran Morzaria said the funding "materially strengthens our ability to pursue the arbitration in an appropriately resourced manner, while preserving balance sheet flexibility."
The Arbitration Funding Agreement provides financing according to an agreed budget under specified terms. Cadence stated the arrangement supports its objective of protecting shareholder value while seeking redress for what it characterizes as measures that destroyed the value of its investments in the Sonora Lithium Project.
