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Construction|PROJECT
Construction|PROJECT
construction|project

Horizonte in talks to solve Araguaia funding gap

23rd October 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Dual-listed Horizonte Minerals is in discussions with major shareholders and lenders on a financing solution to solve the current funding gap for the Araguaia nickel project, in Brazil, CEO Jeremy Martin reported on Monday.

The project is facing a cost increase of at least 35% from the current capital expenditure (capex) budget of $537-million and a delay of first production to the third quarter of next year.

By September 30, $429-million had been spent on Araguaia, with $346-million drawn down from the senior secured project finance debt facility. The company has total liquidity sources of $253-million, comprising $131-million undrawn on the debt facility and cash of $122-million.

The remainder of the undrawn facility would be used to fund the current project capital costs.

“Notwithstanding the expected increase in capital, the Araguaia project remains a Tier 1 nickel project with lower quartile C1 cash cost and a long mine life of 28 years, producing a high-grade, low impurity iron/nickel project,” said Martin.

The company reported that Reta Engenharia’s detailed capital cost and schedule analysis was ongoing and would be completed by the middle of the fourth quarter.

Despite the current challenges, construction of the Araguaia project continued to progress well, reported Martin.

Edited by Creamer Media Reporter

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