Horizonte Minerals, owner of the Araguaia nickel project in Brazil, has entered administration after it confirmed in April it was unable to secure additional financial backing for the Para State project and is eyeing liquidation.
In a 16 May announcement, company officials said its administration of the company and Araguaia was effective that day and that representatives from FRP Advisory were appointed as joint administrators.
The joint administrators will wind down the company’s operations, following which it will cease trading. Affairs, business and property of the company are also being managed by the appointed administrators.
“Discussions…on alternative scenarios will continue to be held during the administration, with a view to a potential restructuring solution that protects the company’s subsidiaries, which are not being placed into administration,” the developer noted.
In related news, Peel Hunt resigned as nominated adviser and broker to Horizonte with immediate effect. The company’s shares remain suspended from trading and pursuant to AIM Rule 1, if a replacement nominated adviser is not appointed within one month, the admission of the company’s shares to trading on AIM will be cancelled.
The company said it has no intention at present to appoint a replacement nominated adviser.
Construction first began on Araguaia, which Horizonte wholly owns, in May 2022 to be the first major ferronickel mine in Brazil.
Source: Horizonte Minerals