TIDMHZM
RNS Number : 7155E
Horizonte Minerals PLC
08 July 2019
NEWS RELEASE
8(th) July 2019
HORIZONTE AWARDED POWER UTILISATION PERMIT
FOR THE ARAGUAIA FERRONICKEL PROJECT
Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or
'the Company'), the nickel development company focused in Brazil,
is pleased to announce that it has been awarded the Energy Decree
for its 100% owned Araguaia Ferronickel Project ('Araguaia' or 'the
Project') in Brazil. The Energy Decree (Portaria de Energia) was
awarded to the Company by the Brazilian Ministry of Mines and
Energy.
Highlights:
-- The Energy Decree guarantees Horizonte access to the national
grid with the required electrical energy demand for the commercial
ferronickel operation;
-- Engineering studies advancing for the transmission line with
the National Agency of Electric Energy (Agência Nacional de Energia
Elétrica - ANEEL);
-- In parallel with this process Horizonte submitted the
combined Preliminary Licence and Construction Licence application
for the powerline to the Brazilian Pará State Environmental Agency
('SEMAS') in mid-June; and
-- The receipt of the Energy Decree follows a number of key
permitting milestones for the Araguaia project, including the award
of the water permit for full-scale operation in April 2018 and the
Construction Licence early 2019.
Jeremy Martin, Chief Executive of Horizonte, commented:
"I am pleased to announce the award of the Energy Decree for the
Araguaia Ferronickel Project. This is another key permit as we move
towards the implementation phase. The availability of energy for
mining projects is a risk in many countries, and this Decree
guarantees the Company has access to the grid for the full-scale
Stage 1 commercial operation with nameplate capacity of 14,500
tonnes of nickel per year.
"Elsewhere we continue to advance the project financing (PF) on
Araguaia, working together with Endeavour Financial, with positive
interest shown from a number of international banks regarding a PF
syndicate. Discussions are also underway with a number of groups on
product marketing and offtake.
"The nickel market fundamentals continue to move in the right
direction with nickel inventories on the London Metal Exchange down
to around 160,000 tonnes today and with continued growth drivers on
the demand side from stainless steel and the electric vehicle
battery market. We look forward to providing further updates as we
move into the second half of the year."
Further Details
Energy Decree
The Energy Decree (Portaria de Energia) was awarded to the
Company by the Brazilian Ministry of Mines and Energy. The Decree
guarantees the Company access to the national power grid, with
power connection at the Xinguara Municipal's substation. The
approval also guarantees the energy required for the commercial
operation of the Rotary Kiln Electric Furnace (RKEF) process
facility at around 80 Megawatt hour (Mwh).
The 230kV electrical transmission line serving the project will
draw from a substation in Xinguara, connecting with Araguaia's own
substation to be constructed beside the future RKEF plant.
The Company is now advancing engineering studies for the
transmission line with the National Agency of Electric Energy
(Agência Nacional de Energia Elétrica - ANEEL).
Transmission Line Preliminary Licence and Construction
Licence
The Company worked with Brandt Consultants ('Brandt'), a leader
in Brazil in this field, together with EcoNorte to complete the
Preliminary Licence and Construction Licence workstreams for the
powerline.
Brandt won the CEMIG three-year contract to permit over 50
electric units throughout Brazil, including 13 hydroelectric plants
and two thermoelectric plants. In addition to this, Brandt also
successfully permitted a number of transmission lines for mines
located in the Pará state. Brandt currently provides environmental
services to the S11D iron ore project operated by Vale, with a team
located in the Carajás Mining District (CMD), north of
Araguaia.
Brandt conducted a number of phases of work throughout 2018-2019
including:
-- Integrated optimisation of the transmission line route
working together with SM&A Engineering;
-- Environmental Control Plans;
-- Flora inventories and fauna studies;
-- Socio-economic studies;
-- Physical environmental studies; and
-- Visits by physical, biological and social analysts to site.
All work is compliant with Brazilian CONAMA environmental
legislation standards and is in accordance with SEMAS Terms of
Reference for the Araguaia Transmission Line.
About Araguaia
The wholly owned Araguaia Project is located in the south-east
of the Brazilian state of Pará, approximately 760 km south of the
state capital Belém.
The Project involves the development of an open pit nickel
laterite mining operation that will mine 27.5 million tonnes ('Mt')
Mineral Reserve of a 119 Mt Mineral Resource to produce 52,000
tonnes of ferronickel ('FeNi') (containing 14,500 tonnes of nickel)
per year, for the 28-year mine life. The metallurgical process
comprises a single line RKEF to extract FeNi from the laterite ore.
The RKEF plant and project infrastructure will be constructed over
a 31-month period. After an initial ramp-up period, the plant is
expected to reach full capacity of approximately 900,000 tonnes of
dry ore feed per year.
The FeNi product will be transported by road to the port of Vila
do Conde for sale to overseas customers.
Based on the FS results published in October 2018, the economic
analysis indicates a post-tax NPV of US$401 million and an IRR of
20.1% using the base case forecast of US$14,000/t Ni. This
increases to US$740 million and 28.1% when using Consensus price of
$16,800/t Ni.
For further information, visit www.horizonteminerals.com or
contact:
Horizonte Minerals plc
Jeremy Martin (CEO) +44 (0) 203 356 2901
Numis Securities Ltd (NOMAD & Joint Broker)
John Prior +44 (0) 207 260 1000
Paul Gillam
Shard Capital (Joint Broker)
Damon Heath +44 (0) 20 186 9952
Erik Woolgar
Tavistock (Financial PR)
Gareth Tredway +44 (0) 207 920 3150
Annabel de Morgan
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed nickel
development company focused in Brazil. The
Company is developing the Araguaia project, as the next major
ferronickel mine in Brazil, and the
Vermelho nickel-cobalt project, with the aim of being able to
supply nickel and cobalt to the EV
battery market. Both projects are 100% owned.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Except for statements of historical fact relating to the
Company, certain information contained in this press release
constitutes "forward-looking information" under Canadian securities
legislation. Forward-looking information includes, but is not
limited to, the ability of the Company to complete the Acquisition
as described herein, statements with respect to the potential of
the Company's current or future property mineral projects; the
success of exploration and mining activities; cost and timing of
future exploration, production and development; the estimation of
mineral resources and reserves and the ability of the Company to
achieve its goals in respect of growing its mineral resources; the
ability of the Company to complete the Placing as described herein,
and the realization of mineral resource and reserve estimates.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved".
Forward-looking information is based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the
date that such statements are made, and are inherently subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to risks related to: the inability of the Company
to complete the Acquisition as described herein, exploration and
mining risks, competition from competitors with greater capital;
the Company's lack of experience with respect to development-stage
mining operations; fluctuations in metal prices; uninsured risks;
environmental and other regulatory requirements; exploration,
mining and other licences; the Company's future payment
obligations; potential disputes with respect to the Company's title
to, and the area of, its mining concessions; the Company's
dependence on its ability to obtain sufficient financing in the
future; the Company's dependence on its relationships with third
parties; the Company's joint ventures; the potential of currency
fluctuations and political or economic instability in countries in
which the Company operates; currency exchange fluctuations; the
Company's ability to manage its growth effectively; the trading
market for the ordinary shares of the Company; uncertainty with
respect to the Company's plans to continue to develop its
operations and new projects; the Company's dependence on key
personnel; possible conflicts of interest of directors and officers
of the Company, the inability of the Company to complete the
Placing on the terms as described herein, and various risks
associated with the legal and regulatory framework within which the
Company operates. Although management of the Company has attempted
to identify important factors that could cause
actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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