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Horizonte Minerals – further finance facility credit approvals step forward

By Hotstockrockets

3 October 2021 14:08

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Horizonte Minerals (HZM) is pleased to announce that it has received further credit approvals for a project finance facility of up to $346.2 million towards the construction and development of its Araguaia ferro-nickel project in Brazil and the shares have responded up to 8.6p leaving us c20% ahead on this 7 month old share tip.

We recently noted approvals for $146.2 million from Denmark’s Export Credit Agency (EKF) and Finland’s Export Credit Agency (Finnvera), with the company emphasising Araguaia its “100% owned tier 1 ferro-nickel project”. That is further supported today by approvals from BNP Paribas, ING Capital, Natixis, Société Générale and Swedish Export Credit Corporation – with the first tranche at LIBOR plus 1.80% (guaranteed by the Export Credit Agencies in relation to a number of key equipment and service provider contracts) and second tranche at LIBOR plus 4.25-4.75%.

It is noted this latest follows “an intensive due diligence process” and “is the catalyst for finalising the other components of the overall financing requirement… the process with the offtake partner and strategic investor is well advanced, and we look forward to updating the market on its conclusion, alongside financial close of the Senior Debt Facility in the coming months”.

We noted on 7.2p offer price March recommendation the potential here seeing us targeting a 10p+ share price and, with a current £146 million market cap, the above potential catalysts and sector sentiment with stainless steel and EV battery demand, see us remain optimistic of getting there. Hold on for 10p+ by Christmas.

This article first appeared on HotStockRockets – to catch the next red hot share tip from the HotStockRockets team for just £5.50 click HERE

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