RE: Funding is not huge….this will bounce up5 Oct 2023 10:39
ThePublican777
Senior Debt Facility, comprised of:
Commercial senior facility of $200,000,000 provided by Senior Lenders (BNP Paribas, BNP Paribas Fortis, ING Capital LLC, ING Bank N.V., Natixis, New York Branch, Société Générale and Swedish Export Credit Corporation). In two tranches and guaranteed by EKF and Finnerva.
ECA facility of $74,562,000 guaranteed by EKF
ECA facility of $71,638,000 guaranteed by Finnvera
Cost Overrun Facility, comprised of:
$25 million, interest 13% pa, secured to the senior debt facility and provided by Orion
Convertible Loan Notes, comprised of:
$65 million, likely fully drawn down and provided by Orion and La Mancha (horrendous interest rates)
Equity Fundraise, comprised of:
Circa $70 million form La Mancha in newly issued shares
$50 million from Orion in newly issued shares
$75 million standard placing in the UK and Canada
$7 million Cornerstone subscription with Glencore
Now this is critical — at the same time as this funding was agreed, Araguaia Niquel Metais Ltd (a subsidiary of Horizonte), entered into a conditional ten year offtake agreement with Glencore for 100% of the nickel produced at Araguaia.
This offtake agreement was a ‘key requirement of the Lenders and significantly de-risks future cash flows from the Project. The Offtake Agreement is conditional upon, among other things, the completion of the Glencore Subscription and the entry by Glencore into a direct agreement with the Lenders in relation to typical intercreditor matters.’
I believe there was also an $8 million placing for the average joe, and then in October 2022, HZM raised another $80 million.
Ok let’s add that all up. In rough figures, that’s $200m + $74.5m + $71.6m + $25m + $65m + $70m + $50m + $75m + $7m + $8m +$80m = $726.1 million.
That’s $1.6 million more than the increased capex figure — so a question long-term holders might have is this: if the cash position stands at $344 million and spending at the project accounts for $329 million, where’s the rest of the cash gone?
That’s over $50 million, a bit much for working capital.
Again, this is just my maths — if I’ve missed something please let me know.
Sign In
Follow the stocks
