Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF, FRA:H5W) said it won approval from the Danish and Finnish export credit agencies for the funding of its Araguaia ferro-nickel project in Brazil.
Denmark's EKF and Finland's Finnvera have approved US$146.2mln of the senior secured project finance facility to part fund construction and development at Araguaia, the AIM-listed company said.
The senior debt facility comprises two tranches, of which tranche A of US$146.2mln is to be guaranteed by the export credit agencies in relation to a number of key equipment and service provider contracts.
Tranche B is expected to be provided by a syndicate of international financial institutions (the senior lenders).
Horizonte CEO Jeremy Martin commented: "The senior debt facility is set to provide a significant portion of the funding required for construction of the project. We look forward to announcing credit approval from the balance of senior lenders during the remainder of the third quarter, as well as further key financing milestones.
“We are now reaching the culmination of this complex funding process which will see us secure the initial capex required to develop Araguaia, our 100% owned tier 1 ferro-nickel project. With construction scheduled to commence on completion of funding this is a very exciting time for Horizonte."