Horizonte, a junior nickel company that is developing two 100% owned, tier one projects in Pará State, Brazil, is going to be churning out nickel to feed the stainless steel and battery technology industries for a long time to come. The project financing package arranged over the past year will fund the construction of the Araguaia Ferronickel Project, with first production scheduled for 2024. 

The Project Financing represents a significant milestone in the Company’s journey to become a major nickel producer and will enable Horizonte to capitalize on the significant projected growth in nickel demand. We believe the terms of the financing package and calibre of the lenders and strategic investors we have attracted is a testament to the strong project fundamentals offered by Araguaia, and the impressive management team they have assembled.

The Project Financing included a US$197 million equity component closed in November 2021, with Orion and La Mancha providing US$121 million of equity, Glencore providing US$7 million of equity and the Canadian and UK public markets providing the balance. Orion and La Mancha also provided US$65 million of convertible loan notes, which closed in March 2022. 

Negotiating the senior debt package required a string of negotiations with close coordination between the sponsors’ technical teams and financial advisor to ensure that the Company could maximize their leverage with ECAs which might support the project. We developed and executed a procurement strategy that would meet both technical and financing objectives.