Dual-listed Horizonte Minerals has appointed Chad Griffin and Geoff Rowley as administrators, following its inability to secure full financing for the Araguaia nickel project, in Brazil.
Despite negotiations with secured creditors and both existing and potential investors to explore alternative restructuring options, the board had concluded that administration was necessary to safeguard the company’s value for creditors and stakeholders.
Horizonte previously said that it engaged more than 150 parties for financing. Thirty-nine entered into non-disclosure agreements. However, despite being impressed by the project’s quality and the comprehensive work by the company’s team, investors cited concerns regarding the nickel market environment, including low spot prices and near-term uncertainties.
In February, Horizonte reported that the Araguaia project would cost $1-billion, up from a previous $537-million budget. The cost review followed a decision last year to restrict the project to critical works.
Horizonte has now formally requested the suspension of trading in its shares on the Aim and TSX. Furthermore, the release of its financial results for the year ended December 31, 2023, has been deferred.