28th Sep 2015 06:05
LONDON (Alliance News) - Horizonte Minerals PLC on Monday said it has struck a deal to acquire FTSE 100-listed Glencore PLC's Araguaia nickel project in Brazil to enlarge its existing nearby project.
Buying Glencore's Araguaia project will enlarge Araguaia's own nickel project in Brazil to create "one of the largest saprolite nickel projects in the world," said Horizonte.
Horizonte will pay USD2.0 million once the deal is completed, which will be satisfied through the issuance of 2.0 million shares, and the total acquisition cost is USD8.0 million.
"This is a game-changing transaction for Horizonte. We have been able to negotiate a unique transaction leveraging the current depressed commodity markets. The combination of the two projects will produce one of the largest undeveloped saprolite nickel resources globally," said Horizonte Chief Executive Jeremy Martin.
"We are confident that we can generate ore for the first 10 years for the single-line Rotary Kiln Electric Furnace (RKEF) plant grading (of over) 2% nickel. The effect this is expected to have on the Enlarged Project?s economics is significant; having the potential to be one of the lower cost operations of its kind, with quicker capital repayment, while offering operational flexibility for increased annual production in the future," he added.
Additionally, Horizonte has raised GBP1.55 million through cornerstone investors after issuing 155.0 million new shares at 1.0 pence per share, to be used for working capital purposes.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
HZM.LGlencore