It was back in December 2009 we wrote our initial Value Proposition for Horizonte Minerals (LON:HZM) (view here). That was nearly eight months ago and it would be no exaggeration to say that a lot has happened since then!
If you recall back then, we empathised with CEO Jeremy Martin; questioning what he would need to do to encourage the market to look more positively on the potential of the assets the company had acquired and developed. But when value isn’t reflected in market cap, from a Private Investor’s perspective, therein lies the opportunity.
In terms of the ‘goings' on’ at Horizonte, a lot has been happening since December and the material developments have now driven us back to the desk to comprehensively update our Value Proposition. In the meantime, specific developments in the Nickel portion of the business, deserve a few thoughts right now.
The outspoken Henry Ford, once said:
“I don't know much about history, and I wouldn't give a nickel for all the history in the world. History is more or less bunk. It is tradition. We want to live in the present, and the only history that is worth a tinker's damn is the history we make”
Well said that man, and certainly, along with the spurious reference to Nickel, it is certainly true that with Horizonte Minerals, investors are better looking forward to where the company is going, rather than back at where it has been. And right now, the direction looks like Big Nickel and Big Gold.
In their announcement on 27th July 2010 the Company provided details of the acquisition, in a reverse takeover, of Teck Cominco Brasil S.A..
Cutting a long story short, this meant old tiddler Horizonte was, through an agreement with Canadian miner, Teck Resources ‘Teck’ (NYSE:TCK) (TSX:TCK.A), purchasing Teck’s Araguaia nickel project located in the Carajas district of northern Brazil. The acquisition is to be achieved through the issue of Horizonte shares to Teck, meaning Teck will hold approximately 123 million shares (or over 50% of total equity ) in Horizonte Minerals.
Alongside the Teck acquisition, Horizonte is also to acquire the remaining 50% of the Lontra Lateritic Nickel project from the current owner in exchange for 10million shares in Horizonte.
Lontra has been shaping up to be a significant good quality lateritic nickel resource in its own…
