Horizonte Minerals Plc, (AIM: HZM, TSX: HZM)
(‘Horizonte’ or ‘the Company’), the nickel development company
focused in Brazil, is pleased to announce that it has been awarded
the Energy Decree for its 100% owned Araguaia Ferronickel Project
(‘Araguaia’ or ‘the Project’) in Brazil. The Energy Decree
(Portaria de Energia) was awarded to the Company by the Brazilian
Ministry of Mines and Energy.
Highlights:
- The Energy Decree guarantees Horizonte access to the national
grid with the required electrical energy demand for the commercial
ferronickel operation;
- Engineering studies advancing for the transmission line with
the National Agency of Electric Energy (Agência Nacional de Energia
Elétrica – ANEEL);
- In parallel with this process Horizonte submitted the combined
Preliminary Licence and Construction Licence application for the
powerline to the Brazilian Pará State Environmental Agency
(‘SEMAS’) in mid-June; and
- The receipt of the Energy Decree follows a number of key
permitting milestones for the Araguaia project, including the award
of the water permit for full-scale operation in April 2018 and the
Construction Licence early 2019.
Jeremy Martin, Chief Executive of
Horizonte, commented:
“I am pleased to announce the award of the
Energy Decree for the Araguaia Ferronickel Project. This is another
key permit as we move towards the implementation phase. The
availability of energy for mining projects is a risk in many
countries, and this Decree guarantees the Company has access to the
grid for the full-scale Stage 1 commercial operation with nameplate
capacity of 14,500 tonnes of nickel per year.
“Elsewhere we continue to advance the project
financing (PF) on Araguaia, working together with Endeavour
Financial, with positive interest shown from a number of
international banks regarding a PF syndicate. Discussions are also
underway with a number of groups on product marketing and
offtake.
“The nickel market fundamentals continue to move in the right
direction with nickel inventories on the London Metal Exchange down
to around 160,000 tonnes today and with continued growth drivers on
the demand side from stainless steel and the electric vehicle
battery market. We look forward to providing further updates as we
move into the second half of the year.”
Further Details
Energy Decree
The Energy Decree (Portaria de Energia) was
awarded to the Company by the Brazilian Ministry of Mines and
Energy. The Decree guarantees the Company access to the national
power grid, with power connection at the Xinguara Municipal’s
substation. The approval also guarantees the energy required for
the commercial operation of the Rotary Kiln Electric Furnace (RKEF)
process facility at around 80 Megawatt hour (Mwh).
The 230kV electrical transmission line serving
the project will draw from a substation in Xinguara, connecting
with Araguaia’s own substation to be constructed beside the future
RKEF plant.
The Company is now advancing engineering studies
for the transmission line with the National Agency of Electric
Energy (Agência Nacional de Energia Elétrica – ANEEL).
Transmission Line Preliminary Licence
and Construction Licence
The Company worked with Brandt Consultants
(‘Brandt’), a leader in Brazil in this field, together with
EcoNorte to complete the Preliminary Licence and Construction
Licence workstreams for the powerline.
Brandt won the CEMIG three-year contract to
permit over 50 electric units throughout Brazil, including 13
hydroelectric plants and two thermoelectric plants. In addition to
this, Brandt also successfully permitted a number of transmission
lines for mines located in the Pará state. Brandt currently
provides environmental services to the S11D iron ore project
operated by Vale, with a team located in the Carajás Mining
District (CMD), north of Araguaia.
Brandt conducted a number of phases of work
throughout 2018-2019 including:
- Integrated optimisation of the transmission line route working
together with SM&A Engineering;
- Environmental Control Plans;
- Flora inventories and fauna studies;
- Socio-economic studies;
- Physical environmental studies; and
- Visits by physical, biological and social analysts to
site.
All work is compliant with Brazilian CONAMA
environmental legislation standards and is in accordance with SEMAS
Terms of Reference for the Araguaia Transmission Line.
About Araguaia
The wholly owned Araguaia Project is located in
the south-east of the Brazilian state of Pará, approximately 760 km
south of the state capital Belém.
The Project involves the development of an open
pit nickel laterite mining operation that will mine 27.5 million
tonnes (‘Mt’) Mineral Reserve of a 119 Mt Mineral Resource to
produce 52,000 tonnes of ferronickel (‘FeNi’) (containing 14,500
tonnes of nickel) per year, for the 28-year mine life. The
metallurgical process comprises a single line RKEF to extract FeNi
from the laterite ore. The RKEF plant and project infrastructure
will be constructed over a 31-month period. After an initial
ramp-up period, the plant is expected to reach full capacity of
approximately 900,000 tonnes of dry ore feed per year.
The FeNi product will be transported by road to
the port of Vila do Conde for sale to overseas customers.
Based on the FS results published in October
2018, the economic analysis indicates a post-tax NPV of US$401
million and an IRR of 20.1% using the base case forecast of
US$14,000/t Ni. This increases to US$740 million and 28.1% when
using Consensus price of $16,800/t Ni.
For further information, visit
www.horizonteminerals.com or contact:
Horizonte Minerals plc
Jeremy Martin (CEO) +44 (0) 203 356 2901
Numis Securities Ltd (NOMAD & Joint
Broker)
John Prior +44 (0) 207 260 1000
Paul Gillam
Shard Capital (Joint
Broker)
Damon Heath +44 (0) 20 186 9952
Erik Woolgar
Tavistock (Financial PR)
Gareth Tredway +44 (0) 207 920 3150
Annabel de Morgan
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed
nickel development company focused in Brazil. The Company is
developing the Araguaia project, as the next major ferronickel mine
in Brazil, and the Vermelho nickel-cobalt project, with the
aim of being able to supply nickel and cobalt to the
EV battery market. Both projects are 100% owned.
CAUTIONARY STATEMENT REGARDING FORWARD
LOOKING INFORMATION
Except for statements of historical fact
relating to the Company, certain information contained in this
press release constitutes "forward-looking information" under
Canadian securities legislation. Forward-looking information
includes, but is not limited to, the ability of the Company to
complete the Acquisition as described herein, statements with
respect to the potential of the Company's current or future
property mineral projects; the success of exploration and mining
activities; cost and timing of future exploration, production and
development; the estimation of mineral resources and reserves and
the ability of the Company to achieve its goals in respect of
growing its mineral resources; the ability of the Company to
complete the Placing as described herein, and the realization of
mineral resource and reserve estimates. Generally, forward-looking
information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking
information is based on the reasonable assumptions, estimates,
analysis and opinions of management made in light of its experience
and its perception of trends, current conditions and expected
developments, as well as other factors that management believes to
be relevant and reasonable in the circumstances at the date that
such statements are made, and are inherently subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to risks related to: the inability of the Company to
complete the Acquisition as described herein, exploration and
mining risks, competition from competitors with greater capital;
the Company's lack of experience with respect to development-stage
mining operations; fluctuations in metal prices; uninsured risks;
environmental and other regulatory requirements; exploration,
mining and other licences; the Company's future payment
obligations; potential disputes with respect to the Company's title
to, and the area of, its mining concessions; the Company's
dependence on its ability to obtain sufficient financing in the
future; the Company's dependence on its relationships with third
parties; the Company's joint ventures; the potential of currency
fluctuations and political or economic instability in countries in
which the Company operates; currency exchange fluctuations; the
Company's ability to manage its growth effectively; the trading
market for the ordinary shares of the Company; uncertainty with
respect to the Company's plans to continue to develop its
operations and new projects; the Company's dependence on key
personnel; possible conflicts of interest of directors and officers
of the Company, the inability of the Company to complete the
Placing on the terms as described herein, and various risks
associated with the legal and regulatory framework within which the
Company operates. Although management of the Company has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements.
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