Horizonte progresses Araguaia after it completes funding

(Sharecast News) - Horizonte Minerals updated the market on the March quarter on Monday, having closed the $633m funding package for the construction of the Araguaia nickel project. The AIM-traded firm said it awarded a number of key construction contracts in the three months ended 31 March, including furnace, EPCM, and earthworks, and made further additions to the project execution team.

It also approved the start of construction in late January, with the earthworks contractor mobilised to site in May, to maximise productivity during the dry season.

Project development work was running in line with the project execution schedule, the board said, with a "significant" ramp-up in activity expected over the coming months as it moved into the dry season.

Financially, Horizonte said the company would adopt US dollars as its reporting currency ahead of first revenue in 2024.

It described a "strong" balance sheet, with cash and cash equivalents of $252m (£205.61m) as at 31 March.

"The company concluded the funding package of $633m in December," the board said in its statement.

"The net proceeds of the fundraising will be used towards the construction of the Araguaia project, as well as for general working capital purposes."

Horizonte said the equity fundraise, which made up $197m of the $633m, was finalised and funds were received in December.

"The debt elements of the funding package include convertible loan notes of $65m, a cost overrun facility of $25m, and a senior debt facility of $346.2m were closed during March.

"First draw is expected from the senior debt facility late in the third quarter."

At 1157 BST, shares in Horizonte Minerals were up 1.53% at 6.98p.

Reporting by Josh White at Sharecast.com.