TIDMHZM
RNS Number : 1691C
Horizonte Minerals PLC
17 June 2021
NEWS RELEASE
17 June 2021
Araguaia Project
Financing Update
Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) (' Horizonte' or
'the Company') the nickel company focused on Brazil, is pleased to
provide a financing update for the Araguaia Nickel Project
('Araguaia' or 'the Project') as the Project moves towards
construction.
Highlights:
-- Credit approval process underway following completion of due
diligence by the International Lenders. Credit approval anticipated
to be received in Q3 2021.
-- Senior Debt Facility expected to benefit from significant
Export Credit Agency support.
-- Cornerstone strategic investor and final offtake agreements
well advanced and expected to be finalised shortly after credit
approvals.
The Company has made excellent progress on all key project
finance workstreams during the course of 2021 and is pleased to
confirm that all five international banks (together the
"International Lenders"), mandated for the US$325 million debt
component of the project finance package ("Senior Debt Facility"),
have each now commenced with their formal credit approval
processes. This follows a comprehensive due diligence process,
including technical and environmental and social due diligence
undertaken by the International Lenders' independent consultants
Micon International Limited and Arcadis respectively, which has
confirmed the robust nature of the Project and the best-in-class
approach to Environmental, Social and Governance ("ESG") standards
that have been employed by Horizonte to date and will continue to
be employed during project implementation. Good progress also
continues to be made on discussions with Brazilian financial
institutions.
As previously announced, the Company has also been in
discussions with a number of Export Credit Agencies ("ECA") to
provide credit support for a significant portion of the Senior Debt
Facility. With the Company close to finalising the selection of key
equipment and service providers for the Project, these discussions
are now well progressed and a significant level of ECA credit
support is now expected.
The receipt of credit approvals from the International Lenders
is the catalyst for finalising all other components of the project
finance package. Whilst the Company has continued to work towards a
target date of the end of H1 2021, the credit approval process is
not a timeline Horizonte has control over. The Company is targeting
receipt of credit approvals in Q3 2021.
In anticipation of final credit approvals for the Senior Debt
Facility, Horizonte has continued to progress all other components
of the project finance package and is in detailed documentation
with a major cornerstone strategic investor and, having received
significant interest in the Araguaia product, is also in final
negotiations on a long-term offtake agreement for the Project.
These other aspects of the overall project finance package are well
advanced, and the Company therefore expects to be in a position to
finalise agreements shortly after receiving credit approvals.
Horizonte CEO, Jeremy Martin commented : "We are now finalising
the project financing for Araguaia. A significant amount of work
has been completed by the team in the past six months particularly
in the comprehensive due diligence process required by the
international lenders. I would like to thank everyone involved in
this process to enable us to reach this critical point,
particularly in their flexibility and dedication in overcoming the
challenges the Covid-19 pandemic has caused.
The completion of this rigorous process further underpins
Araguaia's tier one status. In addition, the support from Export
Credit Agencies as part of the package means we will be shortly
finalising the major contracts for project execution enabling us to
start construction on close of financing."
For further information, visit www.horizonteminerals.com or
contact:
Horizonte Minerals plc info@horizonteminerals.com
Jeremy Martin (CEO) +44 (0) 203 356 2901
Anna Legge (Corporate Communications)
Peel Hunt (NOMAD & Joint Broker)
Ross Allister
David McKeown +44 (0)20 7418 8900
BMO (Joint Broker)
Thomas Rider
Pascal Lussier Duquette
Andrew Cameron +44 (0) 20 7236 1010
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.
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END
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