REG - Horizonte Minerals - Closing of $346.2M Senior Debt Facility & $25M COF

Horizonte MineralsAnnouncement

16/03/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220316:nRSP9481Ea&default-theme=true

RNS Number : 9481E  Horizonte Minerals PLC  16 March 2022

NEWS RELEASE

16 March 2022

 

Horizonte Minerals Plc

("Horizonte" or the "Company")

 

Closing of US$346.2 million Senior Debt Facility and US$25 million Cost
Overrun Facility

 

Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) the nickel company focused in
Brazil is pleased to announce that it has signed binding loan documentation,
including a comprehensive intercreditor agreement and loan agreements with two
export credit agencies ("ECA") in relation to its previously announced senior
secured project finance debt facility of US$346.2 million (the "Senior Debt
Facility") (29 December 2021). The Senior Debt Facility has been executed
between Araguaia Niquel Metais LTDA, a wholly owned subsidiary of Horizonte
and a syndicate of international financial institutions (being BNP Paribas,
BNP Paribas Fortis, ING Capital LLC, ING Bank N.V., Natixis, New York Branch,
Société Générale and SEK, Swedish Export Credit Corporation) (together the
"Senior Lenders") and two export credit agencies (being EKF, Denmark's Export
Credit Agency and Finnvera plc, Finland's Export Credit Agency).

 

Senior Debt Facility

 

The Senior Debt Facility will include the following:

§ Commercial senior facility of US$200,000,000 provided by the Senior
Lenders;

§ ECA facility of US$74,562,000 guaranteed by EKF;

§ ECA facility of US$71,638,000 guaranteed by Finnvera;

First drawdown under the Senior Debt Facility is expected to occur in the
fourth quarter of 2022 following satisfaction of certain conditions precedent
customary for transactions of this nature.

 

Cost Overrun Facility

 

Horizonte has also signed binding loan documentation in relation to its
previously announced (23 November 2021) US$25 million Cost Overrun Debt
Facility (the "COF") with OMF Fund III ("Orion"). Entering into the COF is a
condition precedent to first drawdown under the Senior Debt Facility. The COF
will be available for drawdown in the case of a cost overrun against the
construction schedule and budget, subject to certain conditions including the
Company having deployed 90% of the funding from the equity fundraise and
convertible notes announced on 23 November 2021 toward the construction of the
Araguaia ferronickel project.

 

Details of the COF:

§ Amount: US$25 million

§ Maturity: 3 months after the final maturity date of the Senior Debt
Facility

§ Interest: 13.00% per annum

§ Secured and subordinated to the Senior Debt Facility

Convertible Loan Notes

 

Horizonte is also pleased to confirm the satisfaction of all material
conditions precedent in relation to the previously announced (23 November
2021) US$65 million Convertible Loan Note Issue ("Convertible Notes") with
Orion and La Mancha Investments s.à r.l. ("La Mancha"), with full drawdown
expected in the short term.

 

Horizonte CEO, Jeremy Martin commented: "Horizonte is delighted to have
completed the final documentation required for the Senior Debt Facility and
Cost Overrun Facility for the construction of the Araguaia ferronickel
project. The funding process has been complex but, the US$633 million funding
package is transformational for the Company. With a fully funded, tier one
project, under construction Horizonte is uniquely positioned with our ability
to bring a scalable production profile to the nickel market which is currently
facing significant supply challenges.

 

We would like to thank the Lenders, Orion and La Mancha for their continued
support and look forward to reporting on our progress as we finalise key
equipment and services contracts and work on site moves towards the start of
earthworks for the RKEF processing plant facility in Q2."

 

For further information, visit www.horizonteminerals.com
(http://www.horizonteminerals.com) or contact:

 

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

 Jeremy Martin (CEO)                     +44 (0) 203 356 2901

 Anna Legge (Corporate Communications)

 Peel Hunt (NOMAD & Joint Broker)        +44 (0)20 7418 8900

 Ross Allister

 David McKeown

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

 Thomas Rider

 Pascal Lussier Duquette

 Andrew Cameron

 

 

About Horizonte Minerals:

Horizonte Minerals plc (AIM & TSX: HZM) is developing two 100% owned, tier
one projects in Parà state, Brazil - the Araguaia Nickel Project and the
Vermelho Nickel-Cobalt Project. Both projects are large scale, high-grade,
low-cost, low-carbon and scalable. Araguaia is construction ready and will
produce 29,000 tonnes of nickel per year to supply the stainless-steel market.
Vermelho is at feasibility study stage and will produce 25,000 tonnes of
nickel and 1,250 tonnes of cobalt to supply the EV battery market.
Horizonte's combined near-term production profile of over 50,000 tonnes of
nickel per year positions the Company as a globally significant nickel
producer. Horizonte is developing a new nickel district in Brazil that will
benefit from established infrastructure, including hydroelectric power
available in the Carajás Mining District.

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGPUAAWUPPUQQ