Horizonte Minerals Plc (AIM: HZM | TSX: HZM) has announced its intention to conduct a proposed fundraising to raise gross proceeds of approximately £61.7M (approximately US$70M) at a price of £0.905 per placing share.
The fundraise comprises a conditional placing to new and existing institutional investors to raise £35.2M (approximately US$40.0M) (before expenses) through the issue of new ordinary shares.
As part of the placing, La Mancha Investments s.a r.l. has indicated its intention to participate for up to £23.8M (approximately US$27.0M) and BMO Capital Markets Limited has conditionally agreed to underwrite a portion of the Placing of up to £11.4M (approximately US$13.0M) as further detailed in the appendix to this announcement.
A proposed conditional subscription for new ordinary shares and together with the placing shares, by Glencore International AG and certain directors either directly or through associated entities to raise up to approximately £26.4M (approximately US$30.0M).
Since the commencement of construction at the start of the year, Horizonte has achieved several key milestones in the development of its Araguaia project, which is running to schedule with US$375M of capital commitments placed on budget as of the end of August 2022.
Due to global inflationary pressures and engineering improvements to de-risk the project the total capital cost for the company’s Araguaia nickel project in Brazil has increased by 12.6% now forecast to be US$537M versus the US$477M originally budgeted in November 2021.
The fundraise is anticipated to allow the company to complete the construction of the project, which remains on schedule for first production in Q1 2024. In addition, the fundraise will allow the company to accelerate engineering studies and basic engineering for the development of line 2 at Araguaia, as well as further invest in its decarbonization strategy for the project.
In November 2021, the company secured a US$633M funding package for the construction of Araguaia including a senior debt facility of approximately US$346M and significant equity participation from strategic investors. Together with the primary capital raise, the fundraise is anticipated to allow the company to draw down on its senior debt facility.
BMO and Peel Hunt LLP are acting as joint bookrunners in relation
regulatory due diligence in accordance with the AIM Rules for Companies, which is expected to be completed in Q4 2022.
To find out more, please visit www.horizonteminerals.com
This article was updated on Wednesday 5 October 2022 to reflect the correct share price of the fundraising. The correct price is £0.905 per share and not £0.95 per share as originally reported.
