Horizonte Minerals plc said it expected to receive debt financing of US$325 million from international banks for its 100%-owned Araguaia nickel project in Brazil.
The company added that due diligence had been completed on Araguaia and the credit approval process was underway.
Horizonte is continuing discussions with Brazilian financial institutions and with a number of export credit agencies (ECA) for a significant portion of the senior debt facility.
Agreements with a cornerstone strategic investor and a long-term offtake deal are also well advanced and expected to be finalised shortly following credit approvals.
“The company has made excellent progress on all key project finance workstreams during the course of 2021 and is pleased to confirm that all five international banks (together the international lenders), mandated for the US$325 million debt component of the project finance package (senior debt facility), have each now commenced with their formal credit approval processes.”
Horizonte expects to receive credit approvals during the third quarter of 2021.
DUE DILIGENCE
The international lenders’ independent consultants are Micon International Limited and Arcadis, which confirmed the “robust” nature of the project and the best-in-class approach to environmental, social and governance (ESG) standards.
Chief executive Jeremy Martin said that a significant amount of work had been completed during the past six months particularly in the due diligence process required by the international lenders.
“The completion of this rigorous process further underpins Araguaia’s tier one status.
“In addition, the support from export credit agencies as part of the package means we will be shortly finalising the major contracts for project execution enabling us to start construction on close of financing.”
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