Dual-listed Horizonte Minerals has closed agreements with two export credit agencies for senior project finance debt of $346.2-million to advance its Araguaia nickel project, in Brazil.
The senior debt facility will include a commercial senior facility of $200-million, an export credit agency (ECA) facility of $74.56-million guaranteed by Denmark’s EKF and an ECA facility of $71.64-million guaranteed by Finland’s Finnevera.
Horizonte says the first drawdown under the senior debt facility is expected in the fourth quarter of 2022.
Further, the company signed binding loan documentation for a $25-million cost overrun debt facility with OMF Fund III. Entering into the cost overrun facility is a condition precedent to first drawdown under the senior debt facility.
Horizonte also confirmed the satisfaction of all material conditions precedent in relation to the previously announced $65-million convertible loan note issue with Orion and La Mancha Investments, with full drawdown expected in the short term.
“The funding process has been complex but the $633-million funding package is transformational for the company. With a fully funded, tier-one project, under construction Horizonte is uniquely positioned with our ability to bring a scalable production profile to the nickel market which is currently facing significant supply challenges,” says CEO Jeremy Martin.