REG - Horizonte Minerals - Corporate Update

Horizonte MineralsAnnouncement

01/03/2024 07:00

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RNS Number : 0660F  Horizonte Minerals PLC  01 March 2024

NEWS
RELEASE

1 March 2024

 

HORIZONTE CORPORATE UPDATE

Horizonte Minerals Plc (AIM/TSX: HZM) ("Horizonte" or the "Company") announces
that as part of the interim funding package as announced on 27(th) December
2023, pursuant to which the existing senior lenders had agreed to waivers
including the deferral of interest originally due at 31(st) December 2023 to
the end of February 2024, such senior lenders have now agreed to extend the
waivers until the 29(th) March 2024.

 

The Company will continue to work closely with its major shareholders and
senior lenders on a full funding solution, targeted for the end of Q2 2024.
While a strong focus remains on controlling costs during this period, as
announced on 19(th) February 2024, the Company expects that it will require an
additional interim funding to implement such full funding solution. As at 27
February 2024, the Company had a cash balance of US$24.8 million (excluding
cash that is segregated for the development of the Vermelho Project) which is
currently expected to provide sufficient working capital until mid-April 2024.
However, this may vary depending on the progress of discussions with
creditors, the cash expenditure profile of the Araguaia Project and potential
working capital saving measures being explored by the Company.

 

At this time, there can be no guarantee that a re-financing and re-structuring
solution will lead to a positive outcome for existing shareholders and
noteholders of the Company, nor that senior lenders will continue to extend
the waivers (including interest deferral) until a full funding solution is
completed. Further updates will be provided in due course.

 

In the meantime, the Company's Brazilian subsidiary Araguaia Níquel Metais
Ltda ("ANML"), which is the borrower of the senior loan facilities, may need
to resort to certain protective measures to negotiate indebtedness and work on
a restructuring plan to be approved by its creditors. This would be sought by
ANML to allow it a longer period to negotiate or mediate with creditors and
would be aimed at ensuring the negotiations can be undertaken in a balanced
and transparent manner, whilst assisting to protect its cash in the short term
during the relevant period in which protective measures are in force.

 

The Company considers that an application for protective measures by ANML
would not directly impact Horizonte Minerals plc's current financial
condition. However, as a guarantor of ANML's debt under the senior loan
facilities, if claims are made in relation to the guarantee, the Company may
also need to consider applying for protective measures that may be available
to it, in the event that a re-financing and re-structuring solution for the
group is not achieved or if no agreement is reached with senior lenders with
respect to further extensions of the abovementioned waivers.

 

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

 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

 

 

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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