Horizonte Minerals has disclosed a significant jump in the estimated capital required to complete its Araguaia Nickel Project in Brazil.

The preliminary results of a cost-to-complete (CTC) estimate and schedule review indicate that the project will now require nearly $454m to construct, commission and deliver the first metal.

The company noted that the revised estimate at completion for the Araguaia project stands at $1bn, marking an 87% increase from the previous capex budget of $537m.

Horizonte anticipates that the project will achieve mechanical completion by Q1 2026.

The review was conducted by G Mining Services (GMS), a company with expertise in mining construction and engineering.

GMS is responsible for the construction of the Tocantinzinho gold project in Brazil and has a track record of successful mining project completions, including Lundin Gold‘s Fruta del Norte Project in Ecuador and Newmont Mining’s Merian Mine in Suriname.

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In response to the revised CTC, Horizonte is engaging with its major shareholders and senior lenders to secure a full funding solution, expected to be in place by Q2 2024.

The company is also in discussions to restructure its debt facilities and is actively seeking additional investment from both existing and new potential investors.

Horizonte said it is committed to working closely with its financial partners to address the increased capital requirements and ensure the project’s progression.

Horizonte interim CEO Karim Nasr said: “Since our last update, a significant volume of work has been completed to develop a new Project Execution Plan, develop a realistic mine plan and business plan, all while continuing to proactively engage with the company’s cornerstone shareholders, senior lenders, vendors and contractors as well as the community and local authorities.

“While the new cost-to-complete is higher than previously announced by the company, it is now built on solid methodologies, which is a testament to the hard work undertaken to date by the whole Horizonte team.

“The company is pleased to partner with G Mining Services, who have a track record of success in the region and are currently building the Tocantinzinho project with G Mining Ventures in Para state. The company is now in a position to properly assess its ability to finance and complete the Araguaia Nickel Project (Line 1) and bring it into production.”