Brazilian nickel developer signs $25 million royalty agreement with Orion
Horizonte Minerals (TSX:HZM), which is developing the Araguaia ferro-nickel project in Brazil, announced today that it signed a $25 million royalty agreement with Orion Mine Finance.
Jeremy Martin, Chief Eexecutive of Horizonte, said the funds will be used to advance Araguaia. In return Orion will get a 2.25% royalty on the Araguaia project. The royalty only applies to the first 426,429 tonnes of contained nickel produced and sold.
"We are extremely pleased to secure this royalty agreement with Orion, which enables us to build out our owner's team, advance engineering and early works packages as we proceed to the start of full construction at Araguaia," said Martin. "Nickel has been an outstanding performer this year, currently trading almost 50% higher than at the start of 2019. At current nickel prices of US $15,500/t, the Araguaia feasibility study stage 1 returns an NPV of more than US$580 million."
Horizonte noted that Orion is one of the largest mining finance groups with approximately $5.1 billion under management and has deployed approximately $1.5 billion in royalties, streams, debt and equity over the past 3 years.