Proceeds will be used for drilling program at Araguaia Nickel Project
By Devika Patel
Knoxville, Tenn., Feb. 4 - Horizonte Minerals plc said it has negotiated a private placement of shares. The oversubscribed deal will raise £8.25 million.
The company will sell 32,999,500 ordinary shares at 25p each. The per-share price is a 9.75% discount to the Feb. 3 closing share price of 27.70p.
Proceeds will be used to accelerate the drilling program at the company's flagship Araguaia Nickel Project.
"Naturally we are delighted with the strong appetite that Horizonte has received for this £8.25 million placement, which was oversubscribed, by both new and existing institutional shareholders," chief executive officer Jeremy Martin said in a press release.
"The funds raised will support the next stage of our growth strategy as we fast-track the resource development of our 100% owned Araguaia Nickel Project in the world class Carajas mining district in Brazil. We have been making solid progress on the current resource drilling program, and have recently signed a heads of terms to acquire 100% of the Vila Oito and Floresta nickel projects, which will increase our landholding contiguous to Araguaia.
"The coming year is set to be an exciting time for the company as we advance both nickel and gold exploration projects in Brazil in association with our two major mining partners Teck Resources and AngloGold Ashanti. With this in mind, I believe Horizonte has a solid platform to deliver strong growth, which will in turn further strengthen our investment case for 2011," Martin concluded.
Horizonte Minerals is a London-based nickel, gold, silver and base metal exploration and development company.
| Issuer: | Horizonte Minerals plc
|
| Issue: | Ordinary shares
|
| Amount: | £8,249,875
|
| Shares: | 32,999,500
|
| Price: | 25p
|
| Warrants: | No
|
| Pricing date: | Feb. 4
|
| Stock symbol: | London: HZM
|
| Stock price: | 26.75p at close Feb. 4
|
| Market capitalization: | £68.42 million
|
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