HORIZONTE MINERALS PLC AWARDS PORT CONTRACTS FOR ITS ARAGUAIA NICKEL PROJECT IN BRAZIL
A KEY CONDITION REQUIRED FOR DRAWDOWN OF DEBT FUNDING PACKAGE
· Two Port contracts signed for a minimum of 5-years to cover in-bound consumables and outbound ferro nickel product through the Vila do Conde Port;
· Port operation costs in line with feasibility study with synergies through inbound loads to site and backhaul loads to port; and
· The Vila do Conde Port has established transfer facilities and bonded warehouses ensuring no additional capital required to develop the facility.
Horizonte Minerals Plc (AIM/TSX: HZM) (“Horizonte” or the “Company”) is pleased to announce that it has entered into two long-term port agreements, thereby securing access for the import of required raw materials and the export of its final ferro nickel product, for its 100%-owned Araguaia Nickel Project (“Araguaia” or “the Project”) in Brazil, where construction is underway and first production remains on track to commence in Q1-2024.
The contracts have been awarded to Grupo Atlantica Matapi (“Matapi”) and Santos Brasil Tecon Vila do Conde (“Tecon”), both established operators in the Port of Vila do Conde in Pará State. These five-year contracts (with an option to extend for a further five years) are in line with Horizonte’s feasibility cost, once adjusted for the foreign exchange rate, and represent another key de-risking milestone for the project.
As well as being the closest port to Araguaia, Vila do Conde also provides bonded warehouse services, laydown areas, loading and storage facilities in line with the Company’s operational requirements. Further, by securing the same port for both contracts, synergies exist through back haulage of consumables and ferro nickel product allowing for both the inward and outward journeys to be utilised maximising the cost savings.
Jeremy Martin, CEO of Horizonte Minerals, commented :
“As we move closer to our first debt draw down, these port contracts are a key condition to accessing the debt facility, another example of the progress we are making in terms of de-risking the project.
“With every new partnership we enter into, we take a step closer to unlocking the full potential at Araguaia, and more broadly across Horizonte’s portfolio, and realising our objective of becoming a low-cost nickel producer.”
ABOUT TECON AND MATAPI
Santos Brasil Tecon Vila do Conde (Tecon) has some of the largest and most complete logistics complexes in Brazil, responsible for 18% of all container and cargo moving in the country. It operates the largest container terminal in Latin America and is one of the three most efficient in Brazil. Its principal customers are Vale, Votoratim Metais and Norsk Hydro.
Grupo Atlantica Matapi (Matapi) is a major port operator in northern Brazil with several operational ports. It owns the largest private terminal with extensive infrastructure and capacity for up to 160,000 tons of storage. Its principal customers are Vale, Votoratim Metais and Alunorte.
ABOUT HORIZONTE MINERALS
Horizonte Minerals plc (AIM & TSX: HZM) is developing two 100%-owned, Tier 1 projects in Pará state, Brazil, the Araguaia Nickel Project and the Vermelho Nickel-Cobalt Project. Both projects are large scale, high-grade, low-cost, low-carbon and scalable. Araguaia is under construction with first metal scheduled for early 2024, when fully ramped up with Line 1 and Line 2 it will produce 29,000 tonnes of nickel per year. Vermelho is at feasibility study stage and will produce 25,000 tonnes of nickel and 1,250 tonnes of cobalt to supply the EV battery market. Horizonte’s combined near-term production profile of over 60,000 tonnes of nickel per year positions the Company as a globally significant nickel producer. Horizonte’s top three shareholders are La Mancha Investments S.à r.l., Glencore plc and Orion Resource Partners LLP.
For further information, visit www.horizonteminerals.com or contact:
Horizonte Minerals plc
Jeremy Martin (CEO)
Simon Retter (CFO)
Patrick Chambers (Head of IR)
+44 (0) 203 356 2901
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