5th Oct 2022 12:53
(Alliance News) - Horizonte Minerals PLC on Wednesday said it will be able to advance construction at its Araguaia project following the completion of oversubscribed fundraising.
Araguaia is one of two key development projects currently owned by the Brazilian-focused nickel development company. Horizonte intends to turn Araguaia into Brazil's next major ferronickel mine.
Horizonte said it upsized placing, increasing gross proceeds from GBP61.7 million to GBP70.5 million, after significant institutional demand from existing and new investors.
It also reduced participation by La Mancha Investments from GBP23.8 million to GBP22.0 million before expenses. La Mancha holds shares representing 20% of the company's share capital.
A total of 77.9 million new ordinary shares have been conditionally placed with, or subscribed for by, new and existing investors. The placing was conducted by Peel Hunt LLP and BMO Capital Markets Ltd.
The new fundraise shares will represent 41% of the issued ordinary share capital of the company prior to the fundraiser.
The fundraise is conditional on the approval of shareholders, admission of the shares to trading on AIM becoming effective, receipt of conditional approval of the Toronto Stock Exchange, and the placing agreement not being terminated.
Chief Executive Officer Jeremy Martin said the company is working towards first production at Araguaia in the first quarter of 2024.
"Significant progress has been made since we broke ground at Araguaia in May, and we remain well positioned to transition into a scalable Tier 1 nickel producer," he added.
Horizonte shares were trading 10% lower at 89.15 pence each in London on Wednesday afternoon.
By Holly Beveridge; [email protected]
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