Horizonte Minerals and Orion Mine Finance have announced the signing of a USD $25 million royalty agreement. Horizonte Minerals Chief Executive, Jeremy Martin, has announced the funds will be used to advance the Araguaia ferro-nickel project in Brazil, which is currently in the development stages.
Orion will receive 2.25% royalty on the Araguaia project, but the royalty only applies to the first 426,429 tons of contained nickel produced and sold.
“We are extremely pleased to secure this royalty agreement with Orion, which enables us to build out our owner’s team, and advance engineering and early works packages as we proceed to the start of full construction at Araguaia,” says Martin. “Nickel has been an outstanding performer this year, currently trading almost 50% higher than at the start of 2019. At current, nickel prices of USD $15,500 per ton, the Araguaia feasibility study Stage 1 returns a net present value (NPV) of more than USD $580 million.”
Nickel is an essential element in the 300-series stainless steel grades, giving the grades the strength, ductility, and toughness at cryogenic temperatures.
Image courtesy of Horizonte Minerals