Horizonte Minerals (LON:HZM) has completed a US$25mln royalty transaction with Orion Mine Finance and drawn down the funds.
The cash will help fund the pre-construction work at its nickel plant at Araguaia in Brazil.
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Orion receives a 2.25% royalty on Araguaia’s first 426,400t of contained nickel within the final ferronickel (FeNi) product in return for the US$25mln upfront.
First production at Araguaia is expected in 2022 with the mine scheduled to run for 28 years and produce 52,000t of ferronickel per year.
Last week. Horizonte published a pre-feasibility study for Vermelho, its second project in Brazil, which indicated an NPV of US$1.7bn.