TIDMHZM
RNS Number : 3423X
Horizonte Minerals PLC
19 December 2023
NEWS RELEASE
19 December 2023
ARAGUAIA PROJECT UPDATE
HIGHLIGHTS:
-- Demobilization well advanced with two critical construction activities continuing to progress
-- Consolidated cash position of US$42m as of December 15(th)
2023 which is expected to last until the end of January 2024
-- Positive discussions remain ongoing between lenders and
cornerstone shareholders with regard to commercial terms for an
interim financing solution to extend this period
-- The Company and independent consultants continue to review
the outstanding Project capital expenditure and schedule
re-estimate, necessary to implement a full funding solution
Horizonte Minerals Plc (AIM/TSX: HZM) ("Horizonte" or the
"Company") the nickel development company, announces that
discussions with the Company's cornerstone shareholders on an
interim financing package continue to progress. Discussions were
initiated to provide sufficient liquidity for the Company to
complete the required re-estimation and risk reduction work
necessary to implement a full funding solution for its flagship
Araguaia Nickel Project ("Araguaia" or "the Project") .
LINE 1 OPERATIONAL & FINANCING UPDATE
As announced on 14 November 2023, the Company reduced
construction activities at Araguaia, progressing only critical work
streams in order to manage the Company's liquidity, whilst
continuing discussions with the Company's cornerstone shareholders
and senior lenders. Based on the cash preservation measures
undertaken to date, and ongoing conversations with suppliers, the
Company now estimates to have sufficient working capital until the
end of January 2024. If successful, the discussions with the
cornerstone shareholders and senior lenders should avail further
interim funding to extend this period.
As of 15 December 2023, the Group had a cash position of US$42
million, of which US$19 million is held in secured accounts
relating to Araguaia's project financing and US$16 million is
segregated for the development of Vermelho, with the balance of
US$7 million spread amongst other entities for the ongoing running
of the Group.
The Company's cornerstone shareholders and senior lenders are
continuing to undertake their respective due diligence as part of a
full funding solution, which includes working with the Company and
independent consultants who are undertaking a review of the
outstanding Project capital expenditure and schedule. It is
expected that this due diligence process and independent review
will be finalised in Q1 2024, with a full funding solution targeted
for early Q2 2024.
During this slowdown period, the Company continues to advance
construction of two workstreams, the Water Storage Reservoir and
the 230kV powerline, both critical components of Rotary Kiln
Electric Furnace (RKEF) operations, while maintaining a strong
focus on safety and cash preservation measures.
In conjunction with the above, the Company continues to be
focussed on minimizing the impacts of the deceleration and
demobilization of construction activities on site, as well as
taking the necessary actions to secure a safe and sustainable
resumption of construction activities following the slow down.
LINE 2 FEASIBILITY STUDY
Due to the ongoing review of the outstanding Project capital
expenditure and schedule for Araguaia Line 1, the Line 2
Feasibility Study has been placed on hold given the intrinsic
relationship between Araguaia Line 1 and Line 2.
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:
Horizonte Minerals plc info@horizonteminerals.com
Patrick Chambers (Head of IR) +44 (0) 203 356 2901
Peel Hunt LLP (Nominated Adviser & Joint
Broker)
Ross Allister
Richard Crichton
David McKeown
Bhavesh Patel +44 (0)20 7418 8900
---------------------------
BMO (Joint Broker)
Thomas Rider
Pascal Lussier Duquette
Andrew Cameron +44 (0) 20 7236 1010
---------------------------
Barclays (Joint Broker)
Philip Lindop
Richard Bassingthwaighte +44 (0)20 7623 2323
---------------------------
Tavistock (Financial PR)
Jos Simson
Cath Drummond +44 (0) 20 7920 3150
---------------------------
ABOUT HORIZONTE MINERALS
Horizonte Minerals Plc (AIM/TSX: HZM) is developing two
100%-owned, Tier 1 projects in Pará state, Brazil - the Araguaia
Nickel Project and the Vermelho Nickel-Cobalt Project. Both
projects are high-grade, low-cost, with low carbon emission
intensities and are scalable. Araguaia is under construction and
when fully ramped up with both Line 1 and Line 2, is forecast to
produce 29,000 tonnes of nickel per year. Vermelho is at
feasibility study stage and is expected to supply nickel to the
critical metals market. Horizonte's combined production profile of
over 60,000 tonnes of nickel per year positions the Company as a
globally significant nickel producer. Horizonte's top three
shareholders are La Mancha Investments S.à r.l., Glencore Plc and
Orion Resource Partners LLP.
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 any planned
acquisition of equipment, statements with respect to the potential
of the Company's current or future property mineral projects; the
ability of the Company to complete a positive feasibility study
regarding the second RKEF line at Araguaia on time, or at all, the
ability of the Company to complete a positive feasibility study
regarding the Vermelho Project on time, or at all, the success of
exploration and mining activities; cost and timing of future
exploration, production and development; the costs and timing for
delivery of the equipment to be purchased, 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
realization of mineral resource and reserve estimates and achieving
production in accordance with the Company's potential production
profile or at all. 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 any planned acquisition of
equipment on time or at all, the ability of the Company to complete
a positive feasibility study regarding the implementation of a
second RKEF line at Araguaia on the timeline contemplated or at
all, the ability of the Company to complete a positive feasibility
study regarding the Vermelho Project on the timeline contemplated
or at all, 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, and various risks associated
with the legal and regulatory framework within which the Company
operates, together with the risks identified and disclosed in the
Company's disclosure record available on the Company's profile on
SEDAR at www.sedar.com, including without limitation, the annual
information form of the Company for the year ended December 31,
2022, and the Araguaia and Vermelho Technical Reports available on
the Company's website https://horizonteminerals.com/. 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
UPDUKROROOUUAAA
(END) Dow Jones Newswires
December 19, 2023 09:32 ET (14:32 GMT)
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