Horizonte obtains credit approval for a US $ 346.2 million senior debt facility for the development of the Araguaia project
LONDON, UK / ACCESSWIRE / September 30, 2021 / Horizonte Minerals Plc, (AIM: HZM) (TSX: HZM) (“Horizonte” or “the Company”), the Brazilian-focused nickel company is pleased to announce that it has received credit approvals from a syndicate of five international financial institutions (the “Premier Lenders” ) in addition to the previously announced approval by the two Export Credit Agencies (the “ECAs”) for a Senior Secured Project Finance Facility (the “Senior Debt Facility”) for a maximum amount of US $ 346.2 million to finance the construction and development of its Araguaia ferro-nickel project (“Araguaia” or the “Project”).
The Senior Lenders are BNP Paribas Securities Corp (“BNPP”), ING Capital LLC (“ING”), Natixis, New York Branch (“Natixis”), Société Générale (“SocGen”) and Swedish Export Credit Corporation (“SEK”) ). The ECAs are EKF, the Danish Export Credit Agency (“EKF”) and Finnvera plc, the Finnish Export Credit Agency (“Finnvera”).
The senior debt facility will consist of two tranches:
Tranche A of US $ 146.2 million, to be guaranteed by ECAs under a number of key equipment and service provider contracts; and
Tranche B of US $ 200 million.
The term of the Senior Debt will be ten and a half years for Tranche A, and eight and a half years for Tranche B. The interest rate of the Senior Debt will be at LIBOR plus 1.80% for Tranche. A, and LIBOR plus 4.25 to 4.75% for Tranche B. Closing of the senior credit facility is subject to customary conditions, including the negotiation and settlement of final documentation and the conclusion of a global agreement between creditors, among others.
Endeavor Financial is acting as financial advisor to the Company and Norton Rose Fulbright LLP has acted as legal advisor to the Company with support from Freitas Ferraz law firm in Brazil.
Principal lenders and ECAs are advised by Milbank LLP, Micon International Limited (independent engineer) and Arcadis (independent environmental, social, health and safety consultant).
Horizonte CEO Jeremy Martin commented: “I am delighted to announce the receipt of these final credit approvals from five leading international financial institutions. The Horizonte team and our advisors have been working over the past 18 months to reach this point. Coupled with the two export credit agencies, this syndicate of seven is providing a senior debt facility of US $ 346.2 million to help finance the construction of Araguaia. This step represents the conclusion of an intensive due diligence process which included site visits by senior lenders and independent experts, as well as numerous technical, marketing, environmental, social and legal evaluations of the project.
The union-wide credit approval is the catalyst for finalizing the other components of the overall financing requirement for Araguaia. As previously announced, the process with the drawdown partner and strategic investor is well advanced, and we look forward to informing the market of its closing, alongside the financial close of the senior debt facility in the coming months.
The union strength we have secured is a testament to the economic robustness of the project, the technical capacity of our team, and our best practice sustainability standards. With very few new nickel projects with these credentials in the construction phase, we believe today’s news is a focal point in Horizonte’s story as we work to become a major nickel producer. This comes against a backdrop of strong nickel market fundamentals, where we are seeing significant demand in the stainless steel sector as well as accelerated growth in electric vehicle batteries. “
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014, as stored in the UK in accordance with EU Law S3 (Withdrawal) 2018.
For more information visit www.horizonteminerals.com or contact:
Horizonte Minerals plc
Jérémy Martin (CEO)
Anna Legge (Corporate communication)
+44 (0) 203 356 2901
Peel Hunt (NOMAD & Joint Broker)
+44 (0) 20 7418 8900
Pascal Lussier Duquette
+44 (0) 20 7236 1010
About Horizonte Minerals:
Horizonte Minerals plc (AIM: HZM) (TSX: HZM) is developing two 100% owned Tier 1 projects in Parà State, Brazil – the Araguaia Nickel Project and the Vermelho Nickel-Cobalt Project. Both projects are large-scale, high-quality, low-cost, low-carbon and scalable. Araguaia is ready to be built and will produce 29,000 tonnes of nickel per year to supply the stainless steel market. Vermelho is at the feasibility study stage and will produce 25,000 tonnes of nickel and 1,250 tonnes of cobalt to supply the market for electric vehicle batteries. Horizonte’s short-term combined production profile of over 50,000 tonnes of nickel per year positions the Company as a world-class nickel producer. Horizonte is developing a new nickel district in Brazil that will benefit from established infrastructure, including hydroelectric power available in the Carajás mining district.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact concerning the Company, certain information contained in this press release constitutes “forward-looking information” under Canadian securities laws. Forward-looking information includes, without limitation, the ability of the Company to complete the acquisition as described herein, statements regarding the potential of the Company’s current or future mining projects; the success of exploration and mining activities; the cost and timing of future exploration, production and development; the estimation of mineral resources and reserves and the Company’s ability to meet its objectives in terms of growth of its mineral resources; the Company’s ability to complete the Offering as described herein, and the achievement of mineral resource and reserve estimates. Generally, forward-looking information can be identified by the use of forward-looking terms such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “expected”. , “Estimates”, “anticipates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or statements that certain actions, events or results “could”, “could”, “would do”, “could” or “will be taken”, “occur” or “be reached”. Forward-looking information is based on management’s reasonable assumptions, estimates, analyzes and opinions made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management considers relevant and reasonable in the circumstances at the date on which such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual results, level of activity, the performance or achievements of the Company are materially different from those expressed or implied by such forward-looking information, including, but not limited to, risks related to: the inability of the Company to complete the acquisition as described herein, exploration and mining risks, competition from competitors with greater capital; the Company’s lack of experience with mining operations in the development phase; fluctuations in metal prices; uninsured risks; environmental and other regulatory requirements; exploration, mining and other permits; the Company’s future payment obligations; potential disputes regarding the title of the Company and the size of its mining concessions; the Company’s dependence on its ability to obtain sufficient funding in the future; the Company’s dependence on its relations with third parties; the Company’s joint ventures; the potential for currency fluctuations and political or economic instability in the countries in which the Company operates; fluctuations in exchange rates; the Company’s ability to effectively manage its growth; the trading market for the Company’s ordinary shares; uncertainty regarding the Company’s plans to continue to develop its operations and new projects; the Company’s dependence on key personnel; the possible conflicts of interest of the directors and officers of the Company, the inability of the Company to carry out the Placement under the conditions described herein, and various risks associated with the legal and regulatory framework in which the Company operates. Although the management of the Company has attempted to identify important factors which could cause actual results to differ materially from those contained in the forward-looking information, other factors may cause results not to be as anticipated. , estimated or planned. 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.
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THE SOURCE: Horizonte Minerals SA
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