The new cost estimate now includes $89 million for pre-production and ramp-up of the nickel mine, general and administration, and working capital required to bring the operation to positive cash flow. It also takes into account $25-$50 million related to transaction costs and a minimum cash contingency.
In addition to these costs, the company said it will need to reach a restructuring solution for the group’s existing liabilities, which, as of March 15, were approximately $418 million. These are comprised of $241 million in senior debt, a $27 million cost over-run facility, $68 million to trade creditors and $82 million of convertible loan notes.
Horizonte said it will also need a restructuring solution for its existing royalties arrangements. In 2019, the company signed an agreement with Orion Mine Finance for an upfront funding of $25 million to advance the Araguaia project. In return, Orion would receive a 2.25% royalty.
In…
