Horizonte Minerals Plc (AIM/TSX:HZM) placed into administration – AIM – Suspension

Horizonte Minerals Plc (AIM/TSX: HZM) has been unable to secure interest in the full financing needed to complete its 100% owned Araguaia Nickel Project (“Araguaia” or the “Project”).

After a period of discussions with secured creditors, and existing and new potential investors on alternative scenarios with a view to a potential restructuring solution to attempt to achieve the best possible recovery for the Company’s creditors while minimising potential liabilities, the Board has now regrettably concluded that Horizonte should be placed into administration in order to seek to preserve the value of the business for creditors and other stakeholders. Accordingly, the Board has resolved to appoint Geoff Rowley and Chad Griffin of FRP Advisory as administrators and is in the process of making such appointment.

In light of the above, the Company has requested a suspension of trading in its ordinary shares on AIM with effect from 7.30 am on 16 May 2024 and TSX with effect from 6.00 pm on 15 May 2024. The Final Results for the year ending 31 December 2023 will not be released.

Following consultation with the Company’s Brazilian legal counsel, the injunction (Brazilian Precautionary Measure) granted to the Company’s Brazilian subsidiary Araguaia Níquel Metais Ltda (“ANML”) which was previously expected to end on 15 May 2024 will now end on 24 May 2024. The injunction provides a 60-day stay period against the enforcement of debt and certain security held by senior lenders and creditors, in order to negotiate and work on a restructuring plan to be approved by its creditors.

As previously announced, discussions with secured creditors, and existing and new potential investors on alternative scenarios will continue to be held at ANML with a view to a potential restructuring solution to attempt to achieve some recovery value for the Company’s creditors. These include raising financing at the subsidiary level, or disposing of the Araguaia project whilst in care and maintenance, thereby maintaining the prospect of the project as a going concern, liquidation of the assets of the project, or the consideration of other options available under Brazilian laws to attempt to achieve the best possible recovery to the Company’s creditors while minimising potential liabilities.

Resignation of Nominated Adviser

Consequently, Peel Hunt LLP has informed the Company of its intention to resign as Nominated Adviser and Broker to Horizonte with immediate effect on the appointment of administrators. Pursuant to AIM Rule 1, if a replacement Nominated Adviser is not appointed within one month from the resignation of the current Nominated Adviser, the admission of the Company’s shares to trading on AIM will be cancelled. The Company has no current intention of appointing a replacement Nominated Adviser.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014, as retained in the UK pursuant to the European Union (Withdrawal) Act 2018.

For further information, visit www.horizonteminerals.com or contact: