Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) (“Horizonte” or the “Company”) the nickel company focused on Brazil is pleased to announce that it has received formal credit and board approval from two export credit agencies (the “ECAs”).
For US$146.2 million of the senior secured project finance facility (the “Senior Debt Facility”) to part-fund construction and development of its Araguaia ferro-nickel project (“Araguaia” or the “Project”). The ECAs are EKF, Denmark’s Export Credit Agency (“EKF”) and Finnvera plc, Finland’s Export Credit Agency (“Finnvera”).
The Senior Debt Facility comprises two tranches, of which Tranche A of US$146.2 million is to be guaranteed by the ECAs in relation to a number of key equipment and service provider contracts. Tranche B of the Senior Debt Facility is expected to be provided by a syndicate of international financial institutions (the “Senior Lenders”).
The ECA approvals are a key step forward in the project financing process, and Horizonte is now nearing completion of the credit approvals by the Senior Lenders for the balance of the project financing of Araguaia.
Endeavour Financial is acting as financial advisor to the Company and Norton Rose Fulbright LLP has acted as legal counsel to the Company with support from the Freitas Ferraz law firm in Brazil.
Horizonte CEO, Jeremy Martin commented: ” The receipt of formal credit and board approvals from two export credit agencies for the guarantee of a large component of the Senior Debt Facility is 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.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014, as retained in the UK pursuant to S3 of the European Union (Withdrawal) Act 2018.
For further information, visit www.horizonteminerals.com or contact:
Horizonte Minerals plc
Jeremy Martin (CEO)
Anna Legge (Corporate Communications)
+44 (0) 203 356 2901
About Horizonte Minerals:
Horizonte Minerals plc (AIM & TSX: HZM) is developing two 100% owned, tier one projects in Parà 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 construction ready and will produce 29,000 tonnes of nickel per year to supply the stainless steel market. 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 50,000 tonnes of nickel per year positions the Company as a globally significant nickel producer. Horizonte is developing a new nickel district in Brazil that will benefit from established infrastructure, including hydroelectric power available in the Carajás Mining District.
