Horizonte Minerals PLC (AIM: HZM, TSX: HZM, OTC: HZMMF) has secured a US$20 million interim funding arrangement, generously provided by Orion, Glencore, and La Mancha. This development has propelled the company’s shares upwards by 30%.
HIGHLIGHTS:
· Horizonte agrees a US$20 million interim funding package provided by Orion, Glencore and La Mancha
· The funding package is expected to provide liquidity while a full funding solution is progressed
· Agreement with existing Senior Lenders to defer interest payments due 31 December 2023
· The Company continues to review the outstanding Project capital expenditure and schedule re-estimate, necessary to implement a full funding solution
In an official statement, Horizonte indicated that this interim funding package is intended to bolster liquidity while the comprehensive funding package for its Araguaia nickel project in Brazil is being finalized. Furthermore, senior lenders have agreed to defer interest payments scheduled for December 31, 2023, while a review of project costs is ongoing.
Horizonte has seen a significant decline in its share value, losing nearly 90% of its worth since September when it initially disclosed a 35% cost escalation and production delay.
Karim Nasr, the interim chief executive, expressed, “This funding package underscores the commitment of the company’s major shareholders to finding a resolution for completing the construction of the Araguaia Nickel Project.”
Following this announcement, the company’s shares surged by nearly 30% reaching 10.20p.
