Horizonte Minerals PLC Announces Corporate Update

LONDON, UNITED KINGDOM / ACCESSWIRE / May 1, 2024 / Horizonte Minerals Plc (AIM:HZM)(TSX:HZM) ("Horizonte" or the "Company") announces an update in relation to the interim funding package announced on 27^th December 2023, pursuant to which the existing senior lenders agreed to waivers including the deferral of accrued interest originally due at 31^st December 2023 to the end of February 2024. These waivers were subsequently extended to 29^th March 2024 and 30^th April 2024 and the existing senior lenders have now agreed to further extend the waivers until 15^th May 2024.

Discussions with secured creditors, and existing and new potential investors on alternative scenarios continue to be held with a view to a potential restructuring solution to attempt to achieve some recovery value for the Company's creditors. These include raising financing at the subsidiary level, or disposing of the Araguaia project whilst in care and maintenance, thereby maintaining the prospect of the project as a going concern, liquidation of the assets of the project, or the consideration of other options available under Brazilian laws to attempt to achieve the best possible recovery to the Company's creditors while minimising potential liabilities. The Company does not believe that any of these options are likely to recover any value for the Company's shareholders.

Going forwards and as announced on 28^th March 2024, there can be no guarantee that senior lenders will consent to further extend the current waivers. If no extension is agreed, deferred accrued interest originally payable at the end of December 2023, at the end of Q1 2024 and subsequently, will become immediately due and payable on 16^th May 2024. If these amounts remain unpaid after becoming due and payable, the senior lenders will be entitled to: (a) immediately cancel the undrawn portion of the senior debt facility; (b) declare all outstanding senior debt amounts (including interest) immediately due and payable; and/or (c) seek to enforce the senior lenders' security, which encompasses all or essentially all of the group's assets.

As announced on 14^th March 2024, Araguaia Níquel Metais Ltda ("ANML"), the Company's Brazilian subsidiary, has been granted an injunction (Brazilian Precautionary Measure) giving it a 60-day stay period against the enforcement of debt and certain security held by senior lenders and creditors, in order to negotiate and work on a restructuring plan to be approved by its creditors. This injunction is due to end on 15^th May 2024.