Horizonte Minerals PLC Announces Corporate Update

LONDON, UK / ACCESSWIRE / March 28, 2024 / Horizonte Minerals Plc (AIM:HZM)(TSX:HZM) ("Horizonte" or the "Company") provides an update of progress on the refinancing efforts of its 100%-owned Araguaia Nickel Project ("Araguaia" or the "Project"). Further to the Company update on 19 February 2024 in which Horizonte announced the Cost to Complete ("CTC") capital expenditures required to complete the construction of Araguaia, commission the Project, and deliver first metal (together, "Project Completion"), the Company is providing a further update in relation to the refinancing amount required to fully fund the Project, progress on discussions with relevant financial stakeholders and deferral of interest payments.

FULL FINANCING UPDATE

The CTC estimate of US$454 million announced on 19 February 2024 is the capital required for Project Completion. As explained in that announcement, a higher amount would be required to fully fund the Project when including ramp-up and contingencies.

Horizonte estimates the full funding required to complete construction and bring the operation to positive cashflow is US$567 - 592 million. This consists of the Project CTC of US$454 million, as announced on 19 February 2024, plus US$89 million of pre-production costs, ramp up costs, general & administration and working capital required to bring the operation to positive cash flow, and US$25 - 50 million that relates to transaction costs and a minimum cash contingency.

In addition to these costs, the Company will need to reach a restructuring solution for the group's existing liabilities which as of 15 March 2024 were ~US$418 million, comprised of US$241 million in senior debt, a US$27 million cost over-run facility ("COF"), US$68 million to trade creditors and US$82 million of convertible loan notes, and a restructuring solution for its existing royalties arrangements. Reaching a potential restructuring solution with existing creditors may increase the full funding requirements.

The Company continues to hold discussions to restructure the group's debt in conjunction with seeking a fully funded solution and is actively engaging existing and new potential investors. In connection with such discussions, the Company is continuing to provide information to senior lenders, and existing and new potential investors (under confidentiality agreements), including the full financing amount. As previously announced, the Company expects that it will require additional interim funding around mid-April to implement such full funding solution.