Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) has agreed a US$20 million interim funding package provided by Orion, Glencore and La Mancha, sending its shares up 20%.
In a statement, Horizonte said the funding package is expected to provide liquidity while a full funding package is worked out for its Araguaia nickel project in Brazil.
Senior lenders have also agreed to defer interest payments due 31 December 2023, while a revision of the costs of the project continues.
Horizonte has shed almost 90% of its value since September, when it first warned of a cost increase of 35% and a delay to production.
Karim Nasr, interim chief executive, commented: "This funding package is a demonstration from the company's largest shareholders on their commitment towards finding a solution to complete the Araguaia Nickel Project construction.”
Shares rose 1.55p to 9.4p.