Horizonte Minerals has signed binding loan agreements with two export credit agencies (ECAs), for $346.2m senior project financing to advance its Araguaia nickel project, in Brazil.
The project financing facility includes $200m commercial senior facility provided by a group of financial institutions.
The lenders include BNP Paribas, BNP Paribas Fortis, ING Capital, ING Bank, Natixis, New York Branch, Société Générale and SEK.
The senior debt facility also includes $74.56m ECA facility guaranteed by Denmark’s EKF, and another ECA facility of $71.64m guaranteed by Finland’s Finnevera.
Horizonte Minerals CEO Jeremy Martin said: “The funding process has been complex but the $633-million funding package is transformational for the company.
“With a fully funded, tier-one project, under construction Horizonte is uniquely positioned with our ability to bring a scalable production profile to the nickel market which is currently facing significant supply challenges.”
Araguaia is a Tier 1 mining project that holds high-grade scalable resource, and is located to the south of Carajás mining district in the Pará State, north Brazil.
The property is provided with sophisticated infrastructure, including roads, rail, and hydroelectric power sue to sustained mining activity in Carajás, said Horizonte.
It has two principal mining centres, the Araguaia Nickel South (ANS) and Araguaia Nickel North (ANN).
ANS hosts seven deposits, known as Pequizeiro, Baião, Pequizeiro West, Jacutinga, Vila Oito East, Vila Oito West and Vila Oito, and ANN hosts the Vale do Sonhos deposit.
In August 2020, Horizonte has secured a senior project finance facility of up to $325m to fund the construction and development of its Araguaia project.
