Horizonte Minerals plc has again deferred waivers including interest due on the interim funding package for the Araguaia nickel project in northeast Brazil.
PROTECTIVE
Senior lenders had extended the waivers, originally due on 31 December 2023, to the end of February and have now agreed a new date of 29 March.
Horizonte said it was still working with its major shareholders and senior lenders on a full funding solution, targeted for the end of Q2 2024.
As at 27 February, Horizonte had a cash balance of US$24.8 million, excluding cash segregated for the Vermelho project, for working capital until mid-April 2024.
“At this time, there can be no guarantee that a re-financing and re-structuring solution will lead to a positive outcome for existing shareholders and noteholders of the company, nor that senior lenders will continue to extend the waivers (including interest deferral) until a full funding solution is completed,” said the company in its statement.
Horizonte has also considered introducing protective measures for its finances, given it is a guarantor of ANML’s debt under the senior loan facilities.
The company could face claims in relation to the guarantee if re-financing and re-structuring is not achieved or if no further waivers are agreed with senior lenders.
Horizonte’s subsidiary Araguaia Níquel Metais Ltda (ANML), borrower of the senior loan facilities, may need protective measures while negotiating indebtedness and working on a restructuring plan.
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