(Alliance News) - Horizonte Minerals PLC on Monday said it has secured a USD146.2 million debt facility for the development of its Araguaia ferro-nickel project in Brazil.
Shares in Horizonte were up 9.4% at 8.75 pence in London on Monday.
Export credit agencies EKF Denmark's Export Credit Agency and Finnvera PLC have approved the senior secured project finance facility which will be paid in two tranches.
The first tranche is a USD146.2 million facility guaranteed by EKF and Finnvera to part-fund construction of Araguaia. The second tranche is expected to be provided by a syndicate of international financial institutions.
The receipt of this formal credit is "a key step forward in the project financing process", the company said.
"The receipt of formal credit and board approvals from two export credit agencies for the guarantee of a large component of the senior debt facility is an outstanding achievement for Horizonte," Chief Executive Jeremy Martin added.
"The senior debt facility is set to provide a significant portion of the funding required for construction of the project."
In its first-half results, released last month, Horizonte said it made progress since June on key project execution preparation activities, adding that an Araguaia operational readiness plan was "well advanced" with all key permits in place to start construction.
By Josie O'Brien; josieobrien@alliancenews.com
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Horizonte Minerals (HZM)