Case Studies

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$25m

Transaction Amount

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

Key Contact

Daniel Hill

Vice President


David Rhodes

Managing Director