Horizonte strikes $20m interim funding arrangement

27th Dec 2023 14:19

(Sharecast News) - Horizonte Minerals announced an interim funding agreement amounting to $20m on Wednesday, aimed at bolstering its financial position as it progressed toward securing a comprehensive funding solution.

The AIM-traded firm said the funding package included a $15m senior secured loan facility, and the release of $5m by OMF Fund III, which was previously earmarked for the Vermelho project.

It said the arrangement, supported by Orion, Glencore and La Mancha, would provide essential liquidity to facilitate the advancement of crucial construction activities at Horizonte's flagship project, the Araguaia Nickel Project.

Additionally, the funds would be allocated for general working capital needs.

In conjunction with the interim funding package, Horizonte said it had successfully reached an agreement with its existing senior lenders to defer interest payments that were initially due on 31 December.

"We are pleased to see the continued support from our cornerstone shareholders through this $20m funding package," said interim chief executive officer Karim Nasr.

"This funding package is a demonstration from the Company's largest shareholders on their commitment towards finding a solution to complete the Araguaia Nickel Project construction.

"We are actively engaging with our cornerstone shareholders and senior lenders with the goal of unlocking a funding solution in the second quarter of 2024."

Reporting by Josh White for Sharecast.com.