Horizonte Minerals PLC’s (LON:HZM) (TSE:HZM) chief executive Jeremy Martin described as a “major milestone” the agreement struck with five international banks tasked with raising the US$325mln required to get work underway at the group's Araguaia ferro-nickel project in Brazil.
BNP Paribas, ING Capital, Mizuho Bank, Natixis, and Société Générale will act as arrangers for the debt facility, which is expected to be closed by the end of the year with aim of starting construction early 2021.
"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,” CEO Martin said in a statement.
The debt facility will cover a “significant portion” of the pre-production investment required to complete the first stage of construction for Araguaia, Martin added.
“The interest of top-tier financial institutions further validates Araguaia's status as a tier-one 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,” added Martin.
Sited in Para State, Brazil, Araguaia is slated initially to produce 14,500 tonnes of ferronickel a year with the potential to increase that to 29,000 tonnes through additional investment.