REG - Horizonte Minerals - ARAGUAIA PROJECT UPDATE

Horizonte MineralsAnnouncement

19/12/2023 14:45

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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
(http://www.horizonteminerals.com) or contact:

 

 Horizonte Minerals plc                                                     info@horizonteminerals.com (mailto:info@horizonteminerals.com)

 Patrick Chambers (Head of IR)                                              +44 (0) 203 356 2901

 Peel Hunt LLP (Nominated Adviser & Joint Broker)                           +44 (0)20 7418 8900

 Ross Allister

 Richard Crichton

 David McKeown

 Bhavesh Patel

 BMO (Joint Broker)                                                         +44 (0) 20 7236 1010

 Thomas Rider

 Pascal Lussier Duquette

 Andrew Cameron

 Barclays (Joint Broker)                                                    +44 (0)20 7623 2323

 Philip Lindop

 Richard Bassingthwaighte

 Tavistock (Financial PR)                                                   +44 (0) 20 7920 3150

 Jos Simson

 Cath Drummond

 

 

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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