An anonymous director reports

HORIZONTE MINERALS PLC ANNOUNCES CORPORATE UPDATE

Horizonte Minerals PLC has provided an update in relation to the interim financing package announced on Dec. 27, 2023, pursuant to which the existing senior lenders agreed to waivers, including the deferral of accrued interest originally due at Dec. 31, 2023, to the end of February, 2024. These waivers were subsequently extended to March 29, 2024, and April 30, 2024, and the existing senior lenders have now agreed to further extend the waivers until May 15, 2024.

Discussions with secured creditors, and existing and new potential investors on alternative scenarios, continue to be held with a view to a potential restructuring solution to attempt to achieve some recovery value for the company's creditors. This may include raising financing at the subsidiary level, or disposing of the Araguaia project whilst in care and maintenance, thereby maintaining the prospect of the project as a going concern, liquidation of the assets of the project, or the consideration of other options available under Brazilian laws to attempt to achieve the best possible recovery to the company's creditors while minimizing potential liabilities. The company does not believe that any of these options are likely to recover any value for the company's shareholders.

Going forward and as announced on March 28, 2024, there can be no guarantee that senior lenders will consent to further extend the current waivers. If no extension is agreed, deferred accrued interest originally payable at the end of December, 2023, at the end of the first quarter of 2024 and subsequently, will become immediately due and payable on May 16, 2024. If these amounts remain unpaid after becoming due and payable, the senior lenders will be entitled to: (i) immediately cancel the undrawn portion of the senior debt facility; (ii) declare all outstanding senior debt amounts (including interest) immediately due and payable; and/or (iii) seek to enforce the senior lenders' security, which encompasses all or essentially all of the group's assets.

As announced on March 14, 2024, Araguaia Niquel Metais Ltda. (ANML), the company's Brazilian subsidiary, has been granted an injunction (Brazilian precautionary measure) giving it a 60-day stay period against the enforcement of debt and certain security held by senior lenders and creditors, in order to negotiate and work on a restructuring plan to be approved by its creditors. This injunction is due to end on May 15, 2024.

As a guarantor of ANML's debt under the senior loan facilities, if claims are made in relation to the guarantee given by the company, the company may also need to consider applying for protective measures that may be available to it, or alternatively appoint administrators for the company in the United Kingdom.

As at April 26, 2024, the company had sufficient working capital until the week ending May 17, 2024. However, this may vary depending on the progress of discussions with creditors, the cash expenditure profile of the Araguaia project and potential working-capital-saving measures being explored by the company.

We seek Safe Harbor.