Horizonte Minerals plc is focusing on critical work while talks continue on further financing for its Araguaia nickel project in northeast Brazil.
CAPITAL
During the “slowdown period” the company has advanced the water storage reservoir and the 230kV powerline, both components of rotary kiln electric furnace operations.
Horizonte is also minimising the impacts of the deceleration and demobilisation of construction activities on site.
While the project undergoes a review of the outstanding capital expenditure and schedule for Araguaia Line 1, the Line 2 feasibility study has been put on hold.
Discussions continue with the company’s cornerstone shareholders on an interim financing package to allow completion of a re-estimation and risk reduction for a full funding solution for Araguaia.
Horizonte now estimates to have sufficient working capital until the end of January 2024.
As of 15 December 2023, the group had US$42 million, of which $19m is in secured accounts relating to Araguaia’s project financing and $16m is segregated for the development of Horizonte’s second project of Vermelho.
The balance of $7m is spread among other entities for the ongoing running of the group.
Cornerstone shareholders and senior lenders’ due diligence is expected to finalise during Q1 2024 for a full funding solution which is targeted for early Q2 2024.