REG - Horizonte Minerals - Electro-Mechanical Contract Awarded for Araguaia

Horizonte MineralsAnnouncement

03/11/2022 07:00

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RNS Number : 1956F  Horizonte Minerals PLC  03 November 2022

NEWS
RELEASE

3 November 2022

 

Horizonte Minerals Plc

("Horizonte" or the "Company")

 

Electro-Mechanical Contract Awarded for the Araguaia Nickel Project, Brazil

 

Horizonte Minerals Plc (AIM/TSX: HZM), a nickel company developing two Tier 1
assets in Brazil, is pleased to announce that it has selected MIP Engenharia
& Milplan Engenharia ("MIP/Milpan") to provide the Electro-Mechanical
installation services at Horizonte's 100%-owned Araguaia Nickel Project
("Araguaia" or "the Project").

 

Following a competitive tender process that involved the leading industrial
construction companies active in the mining sector, MIP/Milpan was selected as
the preferred provider. MIP/Milpan has a strong track record and importantly,
prior rotary kiln-electric furnace ("RKEF") experience from Vale's Onça Puma
mine, a ferronickel mine with a similar processing flow sheet to Araguaia, and
a number of other major mining projects in the Carajas region. MIP/Milpan is
well placed to be able to provide access to a skilled workforce, which can be
redeployed from projects that are being completed elsewhere in Pará, Brazil,
further de-risking Araguaia's development schedule.

 

Highlights

 

·    Milplan Engenharia & MIP Engenharia have strong delivery track
records, recently undertaking work at both Vale's S11D and Anglo American's
Minas-Rio mine;

·    Mobilization of workforce already underway to begin furnace assembly
activities on site at Araguaia; and

·    The award of the Electro-Mechanical contract takes the level of
committed spend over US$400m as part of the Araguaia development.

 

Jeremy Martin, CEO of Horizonte Minerals, commented:

 

"We are pleased to welcome Milplan Engenharia & MIP Engenharia, both
world-class partners, to the team for the construction of Araguaia and we look
forward to building a long-term relationship with them. MIP/Milplan have a
proven track record of successfully delivering large projects in Brazil and
across the mining sector, in particular a wealth of experience at a similar
ferronickel project, having worked on Vale's Onça Puma ferronickel mine.

 

"This is another important step forward in the construction of Araguaia,
further de-risking the Project's timeline, which remains on schedule for first
nickel in Q1 2024. With the award of every new contract, we take a step closer
to our objective of becoming a global leader in primary nickel production."

 

Information on Milplan Engenharia & MIP Engenharia

 

MIP Engenharia has a history of heavy industrial construction projects across
Brazil. With more than 300 industrial projects completed and more than
1,000,000 tons of steel assembled, the company works with some of the largest
mining companies including Vale, Anglo American, Gerdau and Kinross, among
others. The experience accumulated in almost six decades brings together
delivers a leading health and safety culture, technical competence, quality in
the execution of services, strong financial backing, and a focus on value
creation for their customers and the communities they operate in.

 

Milplan Engenharia has a 40-year history in Brazil, having completed
approximately 430 industrial projects again for many of the leading mining
clients such as Anglo American, Arcelor Mittal, Gerdau and Vale.  Milplan is
an expert in the execution of construction and electromechanical erection
works, most recently at Vale's S11D, from where an experienced workforce is
able to be re-deployed to Araguaia.

 

 

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

 Simon Retter (CFO)

 Patrick Chambers (Head of IR)

 Peel Hunt LLP (Nominated Adviser & 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

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

 Emily Moss

 Cath Drummond

 

 

ABOUT HORIZONTE MINERALS

Horizonte Minerals plc (AIM & TSX: HZM) is developing two 100%-owned, Tier
1 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 expected 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 60,000 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 of equipment as described herein, 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 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 as described herein, 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 the acquisition of equipment contemplated herein, 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, 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 (http://www.sedar.com) , including without
limitation, the annual information form of the Company for the year ended
December 31, 2021, the Araguaia Report and the Vermelho Report. 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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