REG - Horizonte Minerals - Notice of resolution to appoint administrators

Horizonte MineralsAnnouncement

16/05/2024 07:00

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RNS Number : 6236O  Horizonte Minerals PLC  16 May 2024

 

NEWS
RELEASE

16 May 2024

 

NOTICE OF RESOLUTION TO APPOINT ADMINISTRATORS AND SUSPENSION OF TRADING IN
THE COMPANY'S SHARES

As announced on 15 April 2024, Horizonte Minerals Plc (AIM/TSX: HZM)
("Horizonte" or the "Company") has been unable to secure interest in the full
financing needed to complete its 100% owned Araguaia Nickel Project
("Araguaia" or the "Project"). After a period of discussions with secured
creditors, and existing and new potential investors on alternative scenarios
with a view to a potential restructuring solution to attempt to achieve the
best possible recovery for the Company's creditors while minimising potential
liabilities, the Board has now regrettably concluded that Horizonte should be
placed into administration in order to seek to preserve the value of the
business for creditors and other stakeholders. Accordingly, the Board has
resolved to appoint Geoff Rowley and Chad Griffin of FRP Advisory as
administrators and is in the process of making such appointment.

 

In light of the above, the Company has requested a suspension of trading in
its ordinary shares on AIM with effect from 7.30am on 16 May 2024 and TSX with
effect from 6.00pm on 15 May 2024. The Final Results for the year ending 31
December 2023 will not be released.

 

Following consultation with the Company's Brazilian legal counsel, the
injunction (Brazilian Precautionary Measure) granted to the Company's
Brazilian subsidiary Araguaia Níquel Metais Ltda ("ANML") which was
previously expected to end on 15 May 2024 will now end on 24 May 2024. The
injunction provides a 60-day stay period against the enforcement of debt and
certain security held by senior lenders and creditors, in order to negotiate
and work on a restructuring plan to be approved by its creditors.

 

As previously announced, discussions with secured creditors, and existing and
new potential investors on alternative scenarios will continue to be held at
ANML with a view to a potential restructuring solution to attempt to achieve
some recovery value for the Company's creditors. These include raising
financing at the subsidiary level, or disposing of the Araguaia project whilst
in care and maintenance, thereby maintaining the prospect of the project as a
going concern, liquidation of the assets of the project, or the consideration
of other options available under Brazilian laws to attempt to achieve the best
possible recovery to the Company's creditors while minimising potential
liabilities.

 

Resignation of Nominated Adviser

 

Consequently, Peel Hunt LLP has informed the Company of its intention to
resign as Nominated Adviser and Broker to Horizonte with immediate effect on
the appointment of administrators. Pursuant to AIM Rule 1, if a replacement
Nominated Adviser is not appointed within one month from the resignation of
the current Nominated Adviser, the admission of the Company's shares to
trading on AIM will be cancelled. The Company has no current intention of
appointing a replacement Nominated Adviser.

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014, as retained in the UK pursuant to the European Union
(Withdrawal) Act 2018.

 

For further information, visit www.horizonteminerals.com
(http://www.horizonteminerals.com) or contact:

 

 Horizonte Minerals plc                                info@horizonteminerals.com (mailto:info@horizonteminerals.com)

 Patrick Chambers (Head of IR)                         +44 (0) 203 356 2901

 Peel Hunt LLP (Nominated Adviser & Joint Broker)      +44 (0)20 7418 8900

 Ross Allister

 David McKeown

 BMO (Joint Broker)                                    +44 (0) 20 7236 1010

 Thomas Rider

 Pascal Lussier Duquette

 Andrew Cameron

 

 

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, the ability of the Company to
complete any planned acquisition of equipment, statements with respect to the
potential of the Company's current or future property mineral projects; the
ability of the Company to complete a positive feasibility study regarding the
second RKEF line at Araguaia on time, or at all, the ability of the Company to
complete a positive feasibility study regarding the Vermelho Project on time,
or at all, the success of exploration and mining activities; cost and timing
of future exploration, production and development; the costs and timing for
delivery of the equipment to be purchased, the estimation of mineral resources
and reserves and the ability of the Company to achieve its goals in respect of
growing its mineral resources; the realization of mineral resource and reserve
estimates and achieving production in accordance with the Company's potential
production profile or at all. 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: the inability of the Company to
complete any planned acquisition of equipment on time or at all, the ability
of the Company to complete a positive feasibility study regarding the
implementation of a second RKEF line at Araguaia on the timeline contemplated
or at all, the ability of the Company to complete a positive feasibility study
regarding the Vermelho Project on the timeline contemplated or at all,
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, together with the risks identified and disclosed in the Company's
disclosure record available on the Company's profile on SEDAR at
www.sedar.com, including without limitation, the annual information form of
the Company for the year ended December 31, 2022, and the Araguaia and
Vermelho Technical Reports available on the Company's website
https://horizonteminerals.com/. 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.

 

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