Horizonte Minerals (LON:HZM; CVE:HZM) has reported a strong cash position from which to finance ongoing feasibility work at its nickel project in Brazil.
The company recently agreed to acquire GAP, the deposit adjacent to its Araguaia development, from Glencore to give it control over the one of the world’s largest saprolite nickel projects.
A placing last month boosted its cash balance to £3.2mln, which will be used to complete that deal and incorporate the property into the ongoing feasibility studies at Araguaia.
Last week, Horizonte reported that pilot production using ore from Araguaia nickel project had produced commercial grade ferronickel.
Losses in the three months to September were £418,000 and £1.6mln for the first nine months of 2015.
Araguaia contains 72mln tonnes of ore in the indicated category, grading 1.33% nickel.