Horizonte Minerals Agrees To Buy Araguaia From Teck Resources

27th Jul 2010 07:53

LONDON (Dow Jones)--Gold, silver and base metals explorer Horizonte Minerals PLC (HZM.LN) Tuesday said it agreed to acquire a nickel project in Brazil from Canada's Teck Resources Ltd. (TCK.A.T). Horizonte said it agreed to acquire the Araguaia project from Teck in exchange for roughly 123 million new shares, giving Teck a 50% stake in the company. Horizonte said it also agreed to acquire the 50% of the Lontra nickel project it doesn't already own. The company, which also announced a GBP5.13 million share sale, said the combination of Teck's Araguaia project with Horizonte's Lontra project has the potential for a 100 million metric ton resource with grades comparable to other world-class projects in Brazil. Horizonte said it placed 51.3 million new shares with investors at 10 pence a share--a 14% premium to Monday's closing price. The proceeds of the share sale will be used to fund drilling at Araguaia and Lontra, where a formal nickel resource has yet to be defined, Horizonte said. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires July 27, 2010 02:53 ET (06:53 GMT)