Horizonte Minerals plc reported significant progress and a strong cash position for 2020 at its nickel and cobalt operations in Brazil.
The company is developing the Araguaia project as the next major ferronickel mine in Brazil, and the Vermelho nickel-cobalt project, both of which are 100% owned by Horizonte.
In its final results for the year ended 31 December 2020, the miner showed cash of £10.9 million.
Losses before taxation were narrowed to £2,385,937 from £3,171,214 in 2019.
Significant progress was made on the overall project finance package for the development of Araguaia which was part funded by a syndicate of five international financial institutions mandated for a US$325 million senior debt facility.
BNP Paribas, ING Capital LLC, Mizuho Bank, Ltd., Natixis (New York Branch), and Société Générale will act as the Mandated Lead Arrangers.
The junior miner also agreed a non-binding, conditional term sheet with one major cornerstone equity investor.
Chairman David Hall said that in 2020 Horizonte had “reached significant business and project level milestones”.
“Horizonte is on a path to become a significant nickel producer. We are currently in the midst of the transition from being an explorer/developer to becoming a developer/producer.
“This transition is enabled by securing suitable funding, and this has been our focus for 2020. Araguaia will our first project into production, followed closely by the Vermelho project.”
OPERATIONS AND CORPORATE
The miner completed value engineering for the Araguaia project resulting in improvements to enhance operational performance while remaining in line with 2018 Feasibility Study capex and opex.
The company also appointed Sepanta Dorri to the board as non-executive director as well as making key appointments across the operational and corporate teams in London and Brazil.