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(Alliance News) - Horizonte Minerals PLC on Wednesday said it has executed a USD325 million debt facility mandate for its Araguaia ferro-nickel project in Brazil.
Shares in Horizonte were up 24% at 4.20 pence in London in morning trading.
BNP Paribas , ING Capital LLC, Mizuho Bank Ltd, Natixis, New York Branch, and Societe Generale are to act as the mandated lead arrangers for the senior secured project finance facility and have signed a non-binding indicative terms sheet for a debt facility of up to USD325 million.
The execution of the mandate "is a key milestone in the project financing process for the development of Araguaia," Brazil-focused nickel development company Horizonte explained.
The facility is targeted to close at the end of 2020, subject to due diligence completion, final credit approvals, and execution of documentation for the definitive facility. This documentation will include customary project finance terms and conditions plus an intercreditor agreement. Facility drawdowns "would be subject to customary conditions precedent".
Chief Executive Jeremy Martin said: "The mandating of five international financial institutions, with strong mining and metals track records, for the arrangement of a large senior debt facility is a significant achievement for Horizonte. This debt facility will cover a significant portion of the pre-production capex required to complete the stage 1 construction for Araguaia. We are targeting completion of the project financing package for the project by the end of 2020, provided that restrictions related to the Covid-19 pandemic do not cause further delays. We aim to start construction in early 2021."
By Anna Farley; annafarley@alliancenews.com
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