Horizonte makes progress at Araguaia in first half

Brazil-focussed nickel development company Horizonte Minerals updated the market on its first half on Friday, reporting that project financing for Araguaia was nearing completion, with the credit approval process underway following due diligence by the international lenders.

The AIM-traded firm, which was still pre-revenue, said it was expecting its senior debt facility to benefit from “significant” export credit agency support.

Cornerstone strategic investor and final offtake agreements were “well-advanced”, the board said, and was expected to be finalised shortly after credit approvals.

Horizonte maintained a “strong” cash position of £22.2m at period end on 30 June, the board said, following completion of an £18m equity fundraise in February.

“Financing discussions remain on track,” the board said in its statement.

“Credit committee approval for the senior debt facility is expected in the third quarter, as previously announced.

“Vermelho is progressing, with Ramboll awarded the environmental and social impact assessment contract.”

Since the first half ended, Horizonte said “significant” progress had been on key project execution preparation activities, including competitive tendering for the supply of key processing equipment, electric furnace and project management services.

An operational readiness plan was “well-advanced”, with all key permits in place for the start of construction.

Key environmental and social programmes were also continuing in preparation for the construction phase.

The head of projects had been mobilised to Brazil, and the appointment of engineering, community, health and safety managers was continuing the build-out of the project execution team.

At 0926 BST, shares in Horizonte Minerals were up 5.76% at 6.98p.