AIM and TSX junior nickel developer Horizonte Minerals has done well to raise $4.7m in the current climate and has organised an optional facility for a further $12.5m.
LONDON (MINEWEB) – AIM and TSX main board quoted Horizonte Minerals, which is concentrating its efforts on its Araguaia nickel project in Brazil’s Carajás region in Pará state – a deposit which it describes as a world leading asset in terms of size and grade – has just announced it has raised some £3 million ( around US$4.7 million) in an equity issue at 7.5 p/share, fully supported by its two major shareholders, Teck and Henderson Global Investors (HGI).
In addition it has also entered into a term sheet for an equity financing facility (EFF) for up to £8m ($12.5 million) over three years with Darwin Strategic Limited, a subsidiary of HGI. This can be drawn down at Horizonte’s option.
The Araguaia nickel deposit is a saprolitic nickel laterite located in the same area as Vale’s Onça Puma nickel mine as well as some other significant nickel projects including Glencore Xstrata’s Serra do Tapa only 60 km away.
Grades are reckoned as good for a deposit of this type and the resource is big – with considerable scope for expansion. The current NI 43-101 resource is estimated at 39.3 million tonnes grading 1.39% Ni (Indicated) and 60.9 million tonnes at 1.22% Ni (Inferred) at a 0.95% nickel cut-off. At lower cutoff grades the tonnages are far higher. The deposit comes right to surface so stripping ratios would be very low. Infill drilling has come up with some good high grade intersections too which could add to the overall tenor of the resource and a new resource estimate is currently in preparation by consultants Snowden.
Following the initial share raising, Horizonte will have a net cash position of some £7.3 million ($11.4 million) and this should enable it to see through its Prefeasibility Study (PFS) on the project for which a final contract negotiation was stated to be under way last month. The plan is for the PFS to be completed next year.
In the current climate, where most junior explorers are finding it really tough to raise new capital, Horizonte has done well – although the support of its two major shareholders, Teck and HGI, will have been key to the full uptake. Under the placing Teck will be taking up 20 million new shares in the company and HGI a little over 12 million shares. This will bring their respective interests in Horizonte to 42.5% and 14.9%.
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