Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) said it signed the final documentation required for a US$346.2mln (£265mln) senior debt facility and US$25mln cost overrun facility for the construction of its Araguaia ferronickel project in Brazil.
The first drawdown under the senior debt facility is expected to occur in the fourth quarter of 2022, subject to certain conditions.
Horizonte also confirmed that it had satisfied all the conditions of a previously announced US$65mln convertible loan note with Orion and La Mancha Investments, with full drawdown expected in the short term.
Last November, Horizonte announced it had initiated a US$633mln funding package to cover the construction of Araguaia.
“The funding process has been complex but, the US$633mln funding package is transformational for the company,” said chief executive Jeremy Martin. “With a fully funded, tier one project, under construction Horizonte is uniquely positioned with our ability to bring a scalable production profile to the nickel market which is currently facing significant supply challenges.”
“We would like to thank the lenders, Orion and La Mancha for their continued support and look forward to reporting on our progress as we finalise key equipment and services contracts and work on site moves towards the start of earthworks for the RKEF processing plant facility in Q2," he said.