Horizonte Minerals Plc, (TSX: T.HZM, Stock Forum) announced a placing of 41 million new ordinary shares at 7.5 pence per ordinary share to raise proceeds of £3.082 million before expenses.
Following this placing the company will have a net cash position of £7.3 million.
According to the Horizonte Minerals press release, the proceeds of the placing will be used to fund Horizonte's 100%-owned Araguaia Nickel project, located south of the Carajas mining district in northern Brazil, to the end of the pre-feasibility study.
Horizonte is currently in the final stages of awarding the pre-feasibility study contract with work due to begin in the second half of 2013.
Additionally, Horizonte has entered into a term sheet to put in place an Equity Financing Facility (EFF) for up to £8.0 million over a period of 36 months with Darwin Strategic Ltd., a majority owned subsidiary of Henderson Global Investors.
The EFF provides Horizonte with funding optionality, however the facility is at Horizonte's option and there are no plans in place to utilize the EFF in the foreseeable future.
Under the Placing, Teck Resources Ltd. (TSX: T.TCK.B, Stock Forum) has agreed to subscribe for 20 million new ordinary shares and Henderson Global has agreed to subscribe for 12.1 million new ordinary shares.
Horizonte is an exploration and development company focused in Brazil which wholly owns the advanced Araguaia nickel project located to the south of the Carajas mineral district of northern Brazil.
On Tuesday, Horizonte rose 8% and was trading at $0.13 a share. The company had a market cap of $46.8 million, based on 360 million shares outstanding.