While Horizonte Minerals keeps on searching for a funding solution for the nickel project, works at the company’s flagship Araguaia project, were recently scaled back.
A statement from CEO Jeremy Martin confirmed that the company is only carrying on with the most critical work streams. They are keeping a close eye on safety to manage resources and funds efficiently. Furthermore, talks are underway with the company’s cornerstone shareholders as well as lenders.
With $131 million of the senior debt facility still undrawn and $38 million in cash, the Araguaia project, based in Brazil, possesses a total of $169 million in liquidity resources. Up until close to mid-December, this ought to provide enough working capital.
The company stated that significant shareholders as well as lender representatives visited to inspect the Araguaia project. They were recently working on their own due diligence as part of a funding plan.
Completion and Funding Timeline for Araguaia Project
Construction work on the project would conclude in early 2024, and funds could arrive late in the first quarter.
Martin maintains that work on the financial solution is currently ongoing. He said that they have decided to focus their resources, both financial and human, on the critical task packages. According to him, the aim of this work is to make sure that, after receiving funds, they are positioned to begin full construction activities. This is for the benefit of every stakeholder involved, including the community.
The first output of the Araguaia project is expected to be delayed until the third quarter of the year that follows. The delay comes with a minimum of a 35% increase in expenditures from the current $537 million capital expenditure budget.
The outcome of the various financing talks is going to determine when Araguaia begins production. It will also influence whether the company will continue to deliver updates on its financing progress as needed.
As retained in the UK under the European Union (Withdrawal) Act 2018, the announcement includes inside information for the purpose of Article 7 of EU Regulation 596/2014.