Horizonte Minerals PLC US$325m Senior Debt Facility Mandate for Araguaia (8452V)
12 August 2020 - 4:00PM
UK Regulatory
TIDMHZM
RNS Number : 8452V
Horizonte Minerals PLC
12 August 2020
NEWS RELEASE
12 August 2020
HORIZONTE ANNOUNCES US$325 MILLION SENIOR DEBT FACILITY MANDATE
EXECUTED FOR THE DEVELOPMENT OF THE ARAGUAIA PROJECT
Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or
'the Company') the nickel development company focused in Brazil is
pleased to announce that it has executed a mandate to arrange a
senior secured project finance facility of up to US$325 million
(the "Mandate") to fund the construction and development of its
Araguaia ferro-nickel project in Brazil ('Araguaia' or 'the
Project').
A syndicate of five international financial institutions,
including BNP Paribas ('BNPP'), ING Capital LLC ('ING'), Mizuho
Bank, Ltd. ('Mizuho'), Natixis, New York Branch ('Natixis'), and
Société Générale will act as the Mandated Lead Arrangers ('MLA's').
The formal Mandate follows the signing of a non-binding indicative
term sheet ('Term Sheet') for an up to US$325 million debt facility
(the "Facility").
The execution of the Mandate is a key milestone in the project
financing process for the development of Araguaia. BNPP, ING,
Mizuho, Natixis and Société Générale have extensive experience in
providing project financing to greenfield mining projects and were
chosen as Mandated Lead Arrangers due to their extensive Latin
American project finance experience and the strength of their
mining teams.
Closing of the Facility, targeted for end of the calendar year
2020, remains subject to completion of due diligence in form and
substance satisfactory to the MLAs, final credit approvals and
execution of definitive Facility documentation.
The definitive Facility documentation will include customary
project finance terms and conditions, as well as a comprehensive
intercreditor agreement. Drawdowns under the Facility would be
subject to customary conditions precedent.
Jeremy Martin, Chief Executive of Horizonte, commented , "The
mandating of five international financial institutions, with strong
mining and metals track records, for the arrangement of a large
senior debt facility is a significant achievement for Horizonte.
This debt facility will cover a significant portion of the
pre-production capex required to complete the Stage 1 construction
for Araguaia. We are targeting completion of the project financing
package for the Project by the end of 2020, provided that
restrictions related to the Covid-19 pandemic do not cause further
delays. We aim to start construction in early 2021.
The interest of top tier financial institutions further
validates Araguaia's status as a Tier 1 nickel project and will be
the first of our two 100% owned nickel projects to move to the
construction phase. This major milestone moves us closer to our
goal of becoming a nickel producer. We look forward to updating the
market throughout the rest of this year on our progress."
Endeavour Financial is acting as financial advisor to the
Company. Norton Rose Fulbright LLP is acting as legal counsel to
the Company.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014
For further information visit www.horizonteminerals.com or contact:
Horizonte Minerals plc
Jeremy Martin (CEO) +44 (0) 203 356 2901
Anna Legge (Corporate Communications) a.legge@horizonteminerals.com
Peel Hunt (NOMAD & Broker)
Ross Allister
David McKeown +44 (0)20 7418 8900
Tavistock (Financial PR)
Gareth Tredway +44 (0) 207 920 3150
Annabel de Morgan horizonte@tavistock.co.uk
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed nickel
development company focused in Brazil. The Company is developing
the Araguaia project, as the next major ferronickel mine in Brazil,
and the Vermelho nickel-cobalt project, with the aim of being able
to supply nickel and cobalt to the EV battery market. Both projects
are 100% owned.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Except for statements of historical fact relating to the
Company, certain information contained in this press release
constitutes "forward-looking information" under Canadian securities
legislation. Forward-looking information includes, but is not
limited to, statements with respect to the potential of the
Company's current or future property mineral projects; the success
of exploration and mining activities; cost and timing of future
exploration, production and development; the estimation of mineral
resources and reserves and the ability of the Company to achieve
its goals in respect of growing its mineral resources; the
realization of mineral resource and reserve estimates. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved".
Forward-looking information is based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the
date that such statements are made, and are inherently subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to risks related to: exploration and mining risks,
competition from competitors with greater capital; the Company's
lack of experience with respect to development-stage mining
operations; fluctuations in metal prices; uninsured risks;
environmental and other regulatory requirements; exploration,
mining and other licences; the Company's future payment
obligations; potential disputes with respect to the Company's title
to, and the area of, its mining concessions; the Company's
dependence on its ability to obtain sufficient financing in the
future; the Company's dependence on its relationships with third
parties; the Company's joint ventures; the potential of currency
fluctuations and political or economic instability in countries in
which the Company operates; currency exchange fluctuations; the
Company's ability to manage its growth effectively; the trading
market for the ordinary shares of the Company; uncertainty with
respect to the Company's plans to continue to develop its
operations and new projects; the Company's dependence on key
personnel; possible conflicts of interest of directors and officers
of the Company, and various risks associated with the legal and
regulatory framework within which the Company operates. Although
management of the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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