Horizonte Minerals Plc (LON:HZM) (TSX:HZM) saw its shares bounce higher on Wednesday after the firm announced the appointment of Endeavour Financial, a leading financial advisor in the mining sector, to advise on the arrangement of the project financing for the Araguaia Ferronickel Project.
The Brazil-focused nickel development company said the move follows the recent release of its Feasibility Study results for Araguaia, with Endeavour to focus on the debt and offtake development package for the project.
READ: Feasibility study for Horizonte Minerals' Araguaia nickel project “a major de-risking event”, says Shard Capital, hikes target to 21p
The firm noted that Endeavour is a well-regarded firm with a strong track record of success in the mining industry, specialising in arranging multi-sourced financing for single asset development companies, an example being the recently closed US$750mln financing package for Lundin Gold's Fruta del Norte project in Ecuador.
Jeremy Martin, Horizonte’s chief executive 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"We have noted the movement in the share price yesterday on AIM with some concern and confirm we are not aware of any unpublished price sensitive information.”
He added: “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, with low capital intensity, in the lower quartile of the C1 cost curve for nickel laterites, and we are confident in our ability to raise development finance for the Project.”
Martin concluded: “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."
In early morning trading, Horizonte shares were 5.2% higher at 2.45p having dropped almost 30% on Tuesday.