has executed a finance facility of up to US$325 million in order to fund the construction and development of its Araguaia ferro-nickel project in Brazil.
The $325 million debt facility will cover a significant portion of the pre-production capex required to complete the Stage 1 construction for Araguaia, this morning’s statement noted.
A Feasibility Study conducted at Araguaia in 2018 showed capital costs estimated at US$443 million, including US$65.3 million of contingencies equating to 17.2% of total capex budget.
The nickel developer executed a mandate to arrange the facility with five international financial institutions, including BNP Paribas, ING Capital LLC, Mizuho Bank, Natixis, New York Branch, and Société Générale which will act as the Mandated Lead Arrangers ('MLA's').
Shares in Horizonte Minerals closed at 3.4p on Tuesday afternoon.
The formal mandate, which follows the signing of a non-binding indicative term sheet for an up to US$325m debt facility, has been described by Horizonte as ‘a key milestone’ in the project financing process for the development of its 100% owned Araguaia nickel project.
The closing of the Facility will be targeted for the end of 2020 and will be subject to completion of due diligence to the MLAs, credit approvals and definitive facility documentation including project finance and a comprehensive intercreditor agreement.
Horizonte told investors that it aims to start construction at Araguaia in early 2021.
“The mandating of five international financial institutions, with strong mining and metals track records, for the arrangement of a large senior debt facility is a significant achievement for Horizonte.
The interest of top tier financial institutions further validates Araguaia's status as a Tier 1 nickel project and will be the first of our two 100% owned nickel projects to move to the construction phase,” said Jeremy Martin, Chief Executive Officer of Horizonte.
“This major milestone moves us closer to our goal of becoming a nickel producer,” he added.
The 2018 Feasibility Study indicated Araguaia as a potentially significant low-cost supplier of nickel in the form of high-grade ferronickel to the stainless-steel industry with an initial 28-year mine life, cash flows post-tax of $1.6bn and Mineral Resources beyond 28 years.
For more news and updates on Horizonte Minerals:
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
Toople, a provider of bespoke telecom services to UK SMEs, has announced its successful restructuring is now expected to deliver annualised cost synergies of £1.6m from 1 October 2020. The reduced overhead, and expanding operating margins as the Company focusses on higher value customers, is expected to significantly accelerate the Company’s path to profitability and positive cashflow.
United Oil & Gas PLC (AIM: "UOG"), the growing oil and gas company with a portfolio of production, development, exploration and appraisal assets has reported its maiden revenue and positive operating cashflow.
Pires Investments plc (AIM: PIRI), the investment company focused on next generation technology, has announced Admix has extended its Series A round to raise further $1.5 million from leading gaming investors from Zynga and Dentsu Aegis.
Britain will launch training options for adults to learn new skills in an effort to boost productivity and help the country recover from the coronavirus crisis, Boris Johnson will announce today. The unemployment rate, already at over 4%, is expected to rise further as a job subsidy scheme put in place early in the pandemic expires next month to be replaced by a scaled-back job support programme.
Concepta, the female personalised healthcare company, 1H20 Report highlighted a period of successful corporate reorganisation, recapitalisation and product and commercial development. The Company relaunched its home-use personalised fertility tracking and pregnancy self-testing system under the MYLO® brand during the period with plans on accelerating UK sales and entering new territories in 2H20 and beyond.