LONDON, Aug. 3, 2016 /PRNewswire/ - Horizonte
Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or 'the
Company') the nickel development company focused in
Brazil, is pleased to announce the
transfer to a wholly-owned subsidiary of the Company of the
remaining two licences that make up the Glencore Araguaia nickel
project ('GAP') in north central Brazil. This completes the licence
transfer under the agreement ('Asset Purchase Agreement') to
acquire GAP from Xstrata Brasil Exploraçâo Mineral Ltda
('Xstrata'), a wholly owned subsidiary of Glencore, as
announced by the Company on 28 September
2015.
Highlights
- The closing of the transaction completes the consolidation of
GAP and Horizonte's Araguaia Project creating one of the largest
nickel saprolite projects globally
- The transfer includes the advanced Serra do Tapa nickel
deposit
- Combined projects currently the focus for a new Pre-Feasibility
Study due for completion in Q3 2016
Commenting on the closing of the transaction,
Horizonte CEO Jeremy Martin
said, "I am very pleased to announce the closing of the
transaction with Glencore. The purchase of the GAP project
and consolidation with our existing Araguaia project creates one of
the highest grade saprolite nickel projects globally. We are
in the final stages of completing a new Pre-Feasibility study on
the combined project with the aim of demonstrating that Araguaia
will sit on the lower end of the global cost curve and the upper
end of the grade curve with low capital intensity. In short
our aim is to develop one of the lower cost ferronickel operations
with short capital repayment, while offering operational
flexibility for increased nickel production in the future.
Following the PFS, the next major milestone on the project will be
the full Feasibility Study which is scheduled to commence later
this year. This should run in parallel with an improvement in
the global nickel markets, prices have increased over the last
three months lifting from the multi-year lows seen in Q1 2016."
Background
Following the registration by the National
Department of Mineral Production of Brazil ('DNPM') of the transfer of the
outstanding GAP licences from Xstrata to a wholly-owned subsidiary
of the Company and pursuant to the Asset Purchase Agreement,
Horizonte has now completed the second and final allotment to
Xstrata of Initial Consideration Shares.
Further to the above, the Company has issued and
allotted 50,729,922 new Ordinary Shares to Xstrata, being the
Consideration Shares equivalent in value to US$1,340,000. These closing Initial
Consideration Shares were issued at a price of 1.99 pence (the 'Issue Price'). In
accordance with the terms of the Asset Purchase Agreement the Issue
Price was equal to the five day weighted average price per Ordinary
Share on AIM, taken on the business day when the transfer of the
remaining GAP licences was confirmed, and converted at a rate of
exchange as set out in the Asset Purchase Agreement. This
allocation of shares signifies the completion of the issuance of
the Initial Consideration Shares to a total value of US$2,000,000. Initial Consideration Shares
were previously issued under the Asset Purchase Agreement to the
value of US$660,000 in November 2015 following transfer of the first GAP
licence.
Admission
The issue of the new Ordinary Shares is being
made from existing authorities granted to the Directors at the
general meeting held on 25 November
2015. Accordingly, the issue and allotment of the new
Ordinary Shares is not subject to shareholder approval.
Application has been made for the admission of
the 50,729,922 new Ordinary Shares to trading on AIM and it is
expected that such admission will take place on 8 August 2016 ('Admission'). The new
Ordinary Shares will rank pari passu with the existing Horizonte
Shares currently in issue. Following Admission, there will be
721,934,300 Horizonte Shares in issue.
The commercial terms of the Asset Purchase
Agreement are as announced by the Company on 28 September 2015.
This announcement contains inside information for
the purposes of Article 7 of EU Regulation 596/2014.
About Horizonte Minerals:
Horizonte
Minerals plc is an AIM and TSX-listed nickel development company
focused in Brazil, which wholly
owns the advanced Araguaia nickel laterite project located to the
south of the Carajas mineral district of northern Brazil. The
Company is developing Araguaia as the next major nickel mine in
Brazil, with targeted production
by 2019.
The Project, which has good infrastructure in
place including rail, road, water and power.
Horizonte has a strong shareholder structure
including Teck Resources Limited 28.1%, Henderson Global Investors
17.0%.
CAUTIONARY STATEMENT REGARDING FORWARD
LOOKING INFORMATION
Except for statements of historical fact
relating to the Company, certain information contained in this
press release constitutes "forward-looking information" under
Canadian securities legislation. Forward-looking information
includes, but is not limited to, statements with respect to the
potential of the Company's current or future property mineral
projects; the success of exploration and mining activities; cost
and timing of future exploration, production and development; the
estimation of mineral resources and reserves and the ability of the
Company to achieve its goals in respect of growing its mineral
resources; and the realization of mineral resource and reserve
estimates. Generally, forward-looking information can be identified
by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is based on the reasonable
assumptions, estimates, analysis and opinions of management made in
light of its experience and its perception of trends, current
conditions and expected developments, as well as other factors that
management believes to be relevant and reasonable in the
circumstances at the date that such statements are made, and are
inherently subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially
different from those expressed or implied by such forward-looking
information, including but not limited to risks related to:
exploration and mining risks, competition from competitors with
greater capital; the Company's lack of experience with respect to
development-stage mining operations; fluctuations in metal prices;
uninsured risks; environmental and other regulatory requirements;
exploration, mining and other licences; the Company's future
payment obligations; potential disputes with respect to the
Company's title to, and the area of, its mining concessions; the
Company's dependence on its ability to obtain sufficient financing
in the future; the Company's dependence on its relationships with
third parties; the Company's joint ventures; the potential of
currency fluctuations and political or economic instability
in countries in which the Company operates; currency exchange
fluctuations; the Company's ability to manage its growth
effectively; the trading market for the ordinary shares of the
Company; uncertainty with respect to the Company's plans to
continue to develop its operations and new projects; the Company's
dependence on key personnel; possible conflicts of interest of
directors and officers of the Company, and various risks associated
with the legal and regulatory framework within which the Company
operates.
Although management of the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements.
SOURCE Horizonte Minerals plc