Horizonte Minerals Plc - Administration

Horizonte Minerals Plc (AIM:HZM)(TSX:HZM), a London-based mining company developing two nickel projects in Brazil, entered administration on 16 May.

The company has been developing the mines since 2015 which, if complete, would have made the company one of the leading suppliers of nickel for the stainless steel and battery markets. However, higher than expected costs to complete left the company with insufficient capital to complete the projects.

An extensive global roadshow where over 150 parties were approached about a potential debt or equity investment came up empty-handed, with the majority of parties citing the unfavourable nickel market environment as the reason for declining the opportunity.

Despite nickel’s long-term outlook being strong, investor sentiment has been dampened by low spot prices and near-term uncertainties which include the supply surplus from Indonesia, and the consequent downward shift in the cost curve, risks to global nickel demand and market dynamics of Class I and Class II nickel products.

Chad Griffin and Geoff Rowley of FRP Advisory were appointed joint administrators.