Metals & Minerals News

Horizonte secures export credit agencies’ approval for Araguaia

Horizonte Minerals plc has received approval from two export credit agencies (ECAs) for US$146.2 million of the senior debt facility to help fund the construction and development of its ferronickel project in Araguaia, Brazil.

Outstanding: Horizonte is due to start construction once funding is completed at Araguaia (Horizonte Minerals)

TRANCHES

The ECAs are EKF, Denmark’s Export Credit Agency and Finnvera plc, Finland’s Export Credit Agency.

The senior debt facility comprises two tranches. Tranche A is $146.2m is to be guaranteed by the ECAs in relation to a number of key equipment and service provider contracts.

Tranche B is expected to be provided by a syndicate of international financial institutions (senior lenders).

Horizonte is also nearing completion of the credit approvals by the senior lenders for the balance of the project financing of Araguaia.

MILESTONES

Chief executive Jeremy Martin described the formal credit and board approvals as an “outstanding achievement” for Horizonte.

“The senior debt facility is set to provide a significant portion of the funding required for construction of the project.

“We look forward to announcing credit approval from the balance of senior lenders during the remainder of the third quarter, as well as further key financing milestones.

“We are now reaching the culmination of this complex funding process which will see us secure the initial capex required to develop Araguaia, our 100% owned tier 1 ferro-nickel project.

“With construction scheduled to commence on completion of funding this is a very exciting time for Horizonte.”

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