TIDMHZM
RNS Number : 4653K
Horizonte Minerals PLC
29 August 2019
NEWS RELEASE
29(th) August 2019
HORIZONTE ANNOUNCES US$25 MILLION ROYALTY FUNDING WITH ORION
MINE FINANCE FOR THE DEVELOPMENT OF ITS ARAGUAIA PROJECT
Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or
'the Company') the nickel company focused in Brazil, which is
developing the Araguaia project as Brazil's next ferro-nickel mine
and advancing the Vermelho nickel cobalt project for the electric
vehicle battery market, is pleased to announce that it has signed a
royalty agreement with Orion Mine Finance ('Orion') to provide
funding to advance its Araguaia ferro-nickel Project ('Araguaia' or
'the Project').
Highlights:
-- Orion will provide an upfront cash payment of US$25 million
in exchange for a 2.25% royalty on the Araguaia Project.
-- The Royalty only applies to the first 426,429 tonnes of
contained nickel within the final product (ferronickel) produced
and sold. This is equivalent to the nickel production estimated
over the life of mine for Araguaia in the Stage 1 Feasibility
Study.
-- Orion has a strong track record in financing successful
mining construction projects and has deployed approximately US$1.5
billion in royalties, streams, debt and equity over the past 3
years.
Philip Clegg, Portfolio Manager at Orion Resource Partners said,
"Orion is delighted to become a major investor in Araguaia, one of
the leading nickel development projects globally. We look forward
to supporting Horizonte as it enters the next phase of development
of its world-class portfolio of nickel assets."
Jeremy Martin, Chief Executive of Horizonte, commented, "We are
extremely pleased to secure this royalty agreement with Orion,
which enables us to build out our owner's team, advance engineering
and early works packages as we proceed to the start of full
construction at Araguaia. This royalty financing is non-dilutive
for shareholders, and has been pre-designed to be compatible with
the project funding package. Nickel has been an outstanding
performer this year, currently trading almost 50% higher than at
the start of 2019. At current nickel prices of US$15,500/t, the
Araguaia Feasibility Study Stage 1 returns an NPV of more than
US$580 million.
Orion is one of the largest mining finance groups in the
marketplace with approximately $5.1 billion under management. We
look forward to working with their team as the Araguaia project
advances through to construction."
Analyst conference call and presentation
Horizonte will host an analyst conference call and presentation
today, 29 August 2019, at 10:00AM BST. Participants can access the
call by dialling one of the following numbers below approximately
10 minutes prior to the start of the call.
UK Toll-Free Number: 08003589473
UK Toll Number: +44 3333000804
Pin: 68052152#
The presentation will be available for download from the
Company's website www.horizonteminerals.com or by clicking on the
link below:
https://www.anywhereconference.com?Conference=301297991&PIN=68052152&UserAudioMode=DATA
A recording of the conference call will subsequently be
available on the Company's website
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
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.
About Orion Mine Finance:
The Orion Mine Finance Group is a mining-focused investment
business with USD 5.1 billion under management (as of June 30(th) ,
2019). Orion specializes in providing comprehensive and customized
capital investment solutions to mining companies.
Endeavour Financial is acting as financial advisor to the
Company and Norton Rose Fulbright LLP has acted as legal counsel to
the Company.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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