Horizonte Minerals PLC secured US$25 million from Orion Mine Finance to advance its Araguaia ferronickel project in Brazil.
London-listed Horizonte's shares were up more than 30% around noon following the Aug. 29 announcement.
Orion will pay the amount upfront in cash to the miner in exchange for a 2.25% royalty on the first 426,429 tonnes of contained nickel sold from Araguaia, covering total nickel production over the life of mine outlined in the stage one feasibility study.
Horizonte CEO Jeremy Martin said the funds will allow the company to advance engineering and early works packages to move towards starting full construction at Araguaia.
Brazil's Pará State Environmental Agency approved the construction license for Araguaia in January, which allows the company to construct the project's rotary kiln electric furnace processing plant and associated infrastructure.
