Horizonte Minerals (HZM) has appointed Endeavour Financial, a specialist in the mining sector, to advise on the arrangement of the project financing for its Araguaia Ferronickel Project in Brazil.
The financial advisor has a strong track record of success in the mining industry and will focus on the debt and offtake development package for Araguaia.
The firm specialises in arranging multi-sourced financing for single asset development companies, which include the recently closed US$750 million financing package for Lundin Gold's Fruta del Norte project in Ecuador.
Shares in HZM are up 7% to 2.5p a share today after investors sent shares down after opening at 3.75p each on Monday following the release of its Feasibility Study
The feasibility study noted a production capacity of 14,500 tonnes of nickel, however, the design has allowed for the future construction of a second process line with the potential to double Araguaia's production capacity from to 29,000 tonnes of nickel per year.
Jeremy Martin, Chief Executive of Horizonte, commented: "We have noted the movement in the share price yesterday on AIM with some concern and confirm we are not aware of any unpublished price sensitive information.”
“The Feasibility Study represents a major de-risking step as we move towards the award of the construction licence and advancing the Project funding.”
The results of the study confirmed Araguaia is a high grade, scalable resource, forecasting $1.6bn in cash flows over the initial 28 year lifetime of the mine, with cash costs of $8193 per tonne of nickel.
Jeremy Martin added: “we are confident in our ability to raise development finance for the Project. The Company is currently well funded and we look forward to updating the market on developments at both Araguaia and at the Vermelho nickel cobalt project."
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