• London
  • Vancouver
  • Camana Bay

US$25mTransaction amount

Araguaia Nickel Project / Horizonte Minerals Plc

Araguaia Nickel Project is a development stage, long-life, high grade, scalable ferronickel project located south of the Carajas mining district in the Brazilian state of Pará.

Background

Araguaia Nickel Project is a development stage, long-life, high grade, scalable ferronickel project located south of the Carajas mining district in the Brazilian state of Pará. Endeavour is engaged in a financial advisory role to develop a multi-sourced financing plan to develop the project.

In the short-term, Endeavour has successfully closed an early funding solution and undertook the following:
  • Conducted a thorough market process involving several royalties, streaming and alternative financing parties to determine market-competitive transaction terms
  • Financial modelling, term sheet and documentation negotiations
  • Managing independent consultants and technical assistance
  • Intercreditor principles and agreement negotiation
  • Supporting the company with the conditions precedent to achieve drawdown

Key Contacts

Daniel Hill

Director


David Rhodes

Managing Director


Challenges

  • Greenfield development (3 years before first production)
  • Not all licences and permits in place
  • Brazilian security and tax structuring issues

Solutions

  • Initiated an interim financing process in Feb-19 which concluded with the signing of a royalty agreement. Orion Mine Finance provided an upfront cash payment of US$25 million in exchange for a 2.25% royalty on the Project
  • Expansion and royalty term ‘protections’ and buy-back right for 50% of the royalty
  • Company fully financed to drawdown of development finance

Case Studies

US$190m

Marathon Palladium-Copper Project / Generation Mining

Marathon Palladium-Copper Project, a large undeveloped Cu-PGM mineral deposit in Northwestern Ontario

US$174m

Fenix Gold Project / Rio2 Limited

Fenix Gold Project in the Atacama Region of Chile

US$441m

Amulsar Gold Project / Lydian International

Structure and arrangement of project financing for the construction of the Amulsar Gold Project in Armenia.

US$25m

Araguaia Nickel Project / Horizonte Minerals Plc

Araguaia Nickel Project is a development stage, long-life, high grade, scalable ferronickel project located south of the Carajas mining district in the Brazilian state of Pará.

US$85m

Aurizona Gold Project / Equinox Gold

Structure and arrangement of project financing for the construction of the Aurizona Gold Project in Brazil.

US$185m

Aurora Gold Project / Guyana Goldfields

Structure and arrangement of project financing for the construction of the Aurora Gold Project in Guyana, South America.

US$235m

Bisha Gold Project / Nevsun Resources

Structure and arrangement of project financing for the Bisha gold-copper mine in Eritrea.

US$858m

Boleo Copper Project / Baja Mining

Structure and arrangement of project, equipment & offtaker financing for the development of the Boleo copper mine in Mexico.

US$139m

Dannemora Iron Ore Project / Dannemora Mineral AB

Structure and arrangement of secured bond financing and leasing facilities for the Dannemora iron ore project in Sweden.

Empress Royalty

Empress is a new royalty and streaming investment company listed on the Toronto Stock Exchange (CVE: EMPR).

US$750m

Fruta Del Norte / Lundin Gold

Structure and arrangement of project financing for the construction of the Fruta del Norte Project in Ecuador.

US$190m

Kwale Mineral Sands Project / Base Resources

Endeavour advised Base Resources on the project financing of the Kwale Mineral Sands Project in Kenya.

US$442m

Kupol Gold Project / Bema Gold

Structure and arrangement of project financing for the development of the Kupol gold mine in Russia.

US$95m

Madsen Gold Project / Pure Gold

Endeavour advised Pure Gold on the US$95 million financing of the Madsen Gold Mine in Ontario, Canada.

US$92m

Quebec Lithium Project / Canada Lithium

Structure and arrangement of project financing for the Quebec Lithium Project in Quebec.

US$1,250m

Rosemont Copper Project / Augusta Resource Corporation

Structure and arrangement of project, by-product stream & offtaker financing for the development of the Rosemont copper mine in USA.

US$120m

Voskhod Chromite Project / Oriel Resources

Structure and arrangement of project financing for the Voskhod Chromite mine in Kazakhstan.