Horizonte Minerals plc has agreed US$20 million interim funding for critical construction work at its flagship Araguaia nickel project in Brazil and general working capital.
PACKAGE
The money will be used to re-estimate work necessary to implement a full funding solution, as well as to complete the water storage reservoir and the 230kV powerline.
The financing comprises a $15m senior secured loan facility and the release of $5m by Orion Mine Finance Fund III (Cr) Ltd. previously secured at Vermelho.
The loan facility is from Orion Mine Finance, La Mancha Investments S.à r.l. and Glencore International AG who each committed $5m, with a maturity date of 102 months from 7 December 2022 and 15% interest per annum.
OMF Fund III (Cr) Ltd has also released an additional $5m currently secured at Horizonte’s second 100% owned project of Vermelho.
Following the funding’s close, $11m will remain for Vermelho, where studies continue.
The company’s cornerstone shareholders and senior lenders continue due diligence, as part of a full funding solution, expected to conclude during Q1 2024.
A full funding solution, targeted for Q2 2024, is needed to complete construction at Araguaia.
The company said that there was “no certainty at this stage” that it would achieve full financing.
Interim chief executive officer Karim Nasr added: “We are pleased to see the continued support from our cornerstone shareholders through this US$20 million funding package.
“This funding package is a demonstration from the company’s largest shareholders on their commitment towards finding a solution to complete the Araguaia nickel project construction.
“We wish to thank our cornerstones, local stakeholders and employees for their continued commitment and support.”