Shares of nickel development company Horizonte Minerals (LON: HZM) are sliding on Friday after the company announced the completion of its share placing, which raised £18 million in total.
The AIM-listed company announced the fundraise in a statement released on Thursday evening, reporting the result on Friday morning.
Horizonte issued 162.7 million new ordinary shares at a price of 7.5p per share, raising a total of £18 million with approximately £12.2 million from the placing and £5.8 million from the Canadian offering.
The placing was conducted by Cantor Fitzgerald Canada Corporation, Peel Hunt LLP and BMO Capital Markets Limited, acting as joint book-runners. Simultaneously, the Canadian offering was undertaken by Paradigm Capital Inc.'s syndicate as sole book-runner and included Cormark Securities Inc.
“The financing completed today provides Horizonte with a strong balance sheet as we enter this next phase of the Company's evolution as we advance Araguaia through to start of construction. This funding allows us to fast track critical path workstreams, advance long lead items and continue to build our team,” commented Jeremy Martin, CEO of Horizonte.
“Horizonte is at a very exciting time as we transition to becoming a nickel producer. We have a scalable production profile that will position the Company as a significant nickel producer globally. As part of this transition, it is important that we continue to attract large, long-term institutional shareholders to support our growth,” added Martin.
The company’s shares are currently trading at 8.42p, down 8.97%, having earlier reached lows of 7.96p.
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