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(Alliance News) - Horizonte Minerals PLC on Wednesday celebrated securing a USD20 million package to provide liquidity, while it works towards a full funding solution.
Shares in Horizonte were trading 29% higher at 10.09 pence each in London on Wednesday morning.
The London-based nickel development company said the interim funding package will be provided by Orion Mine Finance Fund III (F) Ltd, Glencore International AG and La Mancha Investments Sarl.
Horizonte added that the funding comprises a USD15 million senior secured loan facility, and the release of USD5 million by OMF Fund III (Cr) Ltd. The latter "will allow for critical construction streams to advance" at Horizonte's flagship Araguaia nickel project, and be used for general working capital purposes.
Horizonte said the loan facility's maturity date will fall 102 months from December 7, 2022, and will bear interest at 15.00% per annum.
The extra USD5 million is currently secured at Horizonte's second wholly-owned project in Brazil, Vermelho. Once the funding package closes, USD11 million will remain segregated for development there.
Horizonte said it has agreed with its existing senior lenders to defer interest payments, originally due on December 31, to the end of February.
Furthermore, Horizonte said it continues to review the Araguaia project's outstanding schedule and capital expenditure, necessary to implement a full funding solution. It expects to complete the review in the first quarter of 2024, with a funding solution anticipated in the second quarter.
"We are pleased to see the continued support from our cornerstone shareholders through this USD20 million funding package," commented Interim Chief Executive Officer Karim Nasr. "This funding package is a demonstration from the company's largest shareholders on their commitment towards finding a solution to complete the Araguaia nickel project construction.
"We are actively engaging with our cornerstone shareholders and senior lenders with the goal of unlocking a funding solution in Q2 2024."
By Emma Curzon, Alliance News reporter
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