A syndicate of five international financial institutions, including BNP Paribas, ING Capital, Mizuho Bank, Natixis and Société Générale will act as the mandated lead arrangers for a $325 million senior secured project finance facility for Horizonte Minerals, which will use the financing to fund the construction and development of its Araguaia ferro-nickel project in Brazil. Horizonte Minerals executed a mandate for the facility and the mandate follows the signing of a non-binding indicative term sheet for an up to $325 million debt facility.
Closing of the facility is targeted for the end of 2020 and remains subject to completion of due diligence in form and substance satisfactory to the MLAs, final credit approvals and execution of definitive facility documentation, which will include customary project finance terms and conditions, as well as an intercreditor agreement. Drawdowns under the facility would be subject to customary conditions.
“The mandating of five international financial institutions, with strong mining and metals track records, for the arrangement of a large senior debt facility is a significant achievement for Horizonte,” Jeremy Martin, chief executive of Horizonte, said. “This debt facility will cover a significant portion of the pre-production capex required to complete the Stage 1 construction for Araguaia. We are targeting completion of the project financing package for the project by the end of 2020, provided that restrictions related to the COVID-19 pandemic do not cause further delays. We aim to start construction in early 2021.
“The interest of top tier financial institutions further validates Araguaia’s status as a Tier 1 nickel project and will be the first of our two 100% owned nickel projects to move to the construction phase. This major milestone moves us closer to our goal of becoming a nickel producer. We look forward to updating the market throughout the rest of this year on our progress.”
Endeavour Financial is acting as financial advisor and Norton Rose Fulbright is acting as legal counsel to Horizonte Minerals.
Horizonte Minerals is a nickel development company focused in Brazil.