RE: RNS - Cancellation25 Jun 2024 10:50
NEWS RELEASE
23 October 2023
HORIZONTE MINERALS PROVIDES Q3-2023 CONSTRUCTION UPDATE
HIGHLIGHTS
• Construction progress continues to be made at Araguaia
o Strong safety performance, no lost time injuries with close to 5.1 million hours worked
o Rotary Kiln sections have been installed on the support piers
o The furnace shell is complete with roof installation underway
o All critical equipment packages have been contracted and are either on site or en route to site
o As of 30 September, 138,000 tonnes of ore averaging 1.92% Ni has been stockpiled
o Commissioning of the 126 km (230kV) power transmission line underway
• US$429 million has been spent at Araguaia as of 30 September 2023
• As stated on 2 October 2023, Reta Engenharia has been retained to complete a detailed capital cost and
schedule analysis which is expected to be completed by mid Q4-2023
• The Company is continuing to progress construction activities while advancing financing discussions with its
cornerstone shareholders and lenders
• Araguaia Nickel Project Line 2 Feasibility Study (“FS”), which aims to double nickel production from 14,500
tonnes per annum to 29,000 tonnes per annum, to be published in mid Q4-2023
Horizonte Minerals Plc (AIM/TSX: HZM) (“Horizonte” or the “Company”), the nickel company developing two Tier
1 assets in Brazil, reports that construction activities continue to progress well at its Araguaia Nickel Project
(“Araguaia” or “the Project”). As of 30 September 2023, US$429 million has been spent on Araguaia with progress
made across key work fronts and no interruptions to date on construction activities.
As stated in the press release dated 2 October 2023, a number of factors arising from the completion of the detailed
engineering work has led to an increase in material and quantities, scope changes, increased costs around the main
electromechanical erection contract and increased duration on delivery schedule. These changes require additional
financing resulting in an expected increase in the overall Project capital requirement by at least 35% (from the
current capex budget of US$537m) and delay of first production to Q3-2024. Reta Engenharia is expected to
complete its capital cost and schedule analysis report, following which an independent technical advisor,
nominated by Senior Lenders will review the updated costs with targeted completion by mid Q4-2023.
Jeremy Martin, CEO of Horizonte, commented: “Despite the current challenges, I am pleased to report that
construction activities at the Araguaia Project continue to progress well, with a strong safety performance to date.
“Notwithstanding the expected increase in capital, the Araguaia project remains a Tier 1 nickel project with lower
quartile C1 cash costs, and a long mine life of 28 years producing a high grade, low impurity FeNi product.
Discussions with the Company’s major shareholders and lenders to fund the project to completion are
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