Horizonte Minerals Plc Araguaia Project Operational Update
LONDON, Dec. 04, 2020 (GLOBE NEWSWIRE) -- Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) (“Horizonte” or “the Company’) the nickel company focused on Brazil, is pleased to provide an
operational update for the Araguaia Nickel Project (“Araguaia” or “the Project”) as the Project moves towards construction.
- Completion of the value engineering phase with improvements made to plant design and flow sheet to optimise operational performance;
- Capex and opex remain in line with Feasibility Study following comprehensive review;
- Operational Readiness Plan well advanced with all key permits in place for commencement of construction;
- Key environmental and social programmes underway in preparation for construction phase;
- Project finance process continues to progress, with a number of key milestones delivered;
- Build out of the operational and corporate teams to support transition to construction; and
- Nickel price trading at US$16,300 versus Araguaia base case modelled at US$14,000 resulting in enhanced project economics.
Horizonte’s CEO, Jeremy Martin, commented:
“Horizonte has made significant progress with the key workstreams required to commence construction at Araguaia, despite the challenges posed by the Covid-19 pandemic over the last 10 months.
The project funding package for Araguaia involves multiple components that are being negotiated simultaneously. We continue to engage with a number of prospective investors, have recently negotiated a non-binding, term sheet with a major cornerstone equity investor, have reached an advanced stage with offtake agreements, received initial approval for a financing facility of up to R$200 million (c.$32 million) from Banco da Amazônia and are advancing workstreams with a syndicate of five international banks for the principal project finance package, as previously announced.
In parallel, we have spent the past eight months undertaking a phase of value engineering to upgrade the Feasibility Study completed in 2018 and optimise certain aspecst of the Project to a level where it is implementation ready. This work has included development of a detailed Project Execution and Operational Readiness Plan.
These workstreams have further de-risked the Project and give us clear visibility on how we will deliver a successful, tier-one nickel project. Critical to the Project’s delivery is the growth of our teams. The high calibre of the individuals we have been able to attract is testament to the quality of our projects, the growth trajectory of the Company, and the culture of best practice that we have worked hard to develop over many years of operating in Brazil. Our people have always played a vital role in delivering the Company’s success, and I am delighted to welcome the new members to the team as we start to the journey to becoming a nickel producer”.