Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF, FRA:H5W) reiterated its confidence that financing of the Araguaia nickel project in Brazil is nearing completion, as it announced half-year results.
The AIM- and TSX-listed company said the credit approval process is underway following completion of due diligence by its potential international lenders.
Shortly after credit approvals are gained, the group expects to finalise agreements with a cornerstone strategic investor and about a final offtake deal that are currently “well advanced”.
Horizonte reported a cash position of £22.2mln at the half-year stage, after completing an £18mln fundraise in February and making a £2.3mln loss in the first half.
Financing discussions were said to “remain on track”, with credit committee approval for the senior debt facility expected in the third quarter as previously stated.
So far in the second half of the year, management said they have launched a competitive tender for the supply of key processing equipment, the electric furnace and project management services, while also assembling all key permits in place to begin construction.
The sustainability report for 2020 has been published and environmental and social programmes were said to be continuing in preparation for the construction phase, with Horizonte also continuing to build its project execution team, with the head of projects now in Brazil and other managers appointed.