Horizonte Minerals’ efforts to secure alternate financing or else secure a sale of the company to a third party have failed with the emphasis now on protecting its creditors.
As a result, there is likely to be next to no residual value for existing shareholders, notes Peel Hunt.
The broker adds that despite signing 39 non-disclosure agreements with potential financing partners, the near-term nickel price weakness and medium-term concerns over Indonesian supply meant none of the potential partners moved ahead with providing finance.
A sale of the assets or other liquidation events might be the result, adds Peel Hunt.
Shares fell 82% to 0.43p.