Shares in nickel development FTSE AIM All-Share listed firm Horizonte Minerals (LSE: HZM) closed 67% higher at 13.15p on Wednesday after the company announced a $20 million funding package to provide liquidity while it works towards full financing for its flagship Araguaia project in Brazil. The stock remains down 90% year-to-date.
The interim package comprises a $15 million senior secured loan facility and the release of $5 million in cash previously set aside for Horizonte’s second project, Vermelho. Horizonte said the funds will allow “critical construction streams to advance” at Araguaia and provide working capital.
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The company continues to review Araguaia’s capital expenditure needs and expects to complete the assessment in Q1 2024, with a full funding solution targeted for Q2. “This funding package demonstrates our largest shareholders’ commitment to finding a solution to complete the Araguaia nickel project,” said Interim CEO Karim Nasr.
Horizonte is working with existing lenders to defer upcoming interest payments to the end of February as it engages cornerstone investors towards unlocking long-term financing.
