Changes to Araguaia Nickel Project

London, 15th April 2023 - Horizonte Minerals, the London-listed nickel-development company, has announced significant changes to its Araguaia nickel project. As a result, the company expects the overall capital expenditure requirement to increase by at least 35%. Additionally, the first production is now anticipated in the third quarter of 2024, causing a decline in Horizonte Minerals' share price.

Comprehensive Cost Review Leads to Design and Execution Modifications

In an effort to derisk its operations, Horizonte Minerals conducted a comprehensive cost review. This review has prompted changes to the design and execution scope of the Brazilian project. Notably, the final detailed engineering work includes additional scope items related to equipment packages. The company has also made several design adjustments based on the original engineering study. Moreover, it has identified the necessity for extra civil works and quantities.

Focus on Securing Financing Solutions

Despite the increased capital requirement, Chief Executive Jeremy Martin remains optimistic about the long-term value of Araguaia. He stated, "Araguaia remains a Tier 1 asset that will deliver strong margins over its 28-year mine life once production commences next year." In order to complete construction, the company is actively collaborating with various financial institutions and shareholders to develop a financing plan.