TORONTO, Feb. 8 -- Horizonte Minerals plc, (TSX:HZM, AIM:HZM) ("Horizonte" or "the Company") the exploration and development company focused in Brazil, announces that further to the announcement on 12 July 2011 that the Company had entered into a definitive agreement with respect to the purchase of 100% of the Vila Oito and Floresta nickel laterite projects, Horizonte has now completed this purchase.The Vila Oito and Floresta nickel laterite projects, which are located adjacent to Horizonte's 100% owned Araguaia nickel project, have been acquired from the Brazilian affiliate of Canadian-listed Lara Exploration Ltd ('Lara') (TSX: LRA).
The total consideration for the acquisition comprises 8.5 million new ordinary shares ('the Consideration Shares') which will be issued to Lara and equate to C$2 million based on the 20 day average price to 10 January 2011, as per the original Heads of Agreement announced on 18 January 2011.
The Consideration Shares will represent 2.95% of the enlarged issued ordinary share capital after completion of the transaction, which will then comprise 288,059,980 ordinary shares.
Application has been made to the London Stock Exchange for the Consideration Shares to be admitted to trading on AIM and it is expected that admission will occur, and dealings in the Consideration Shares will commence on 9 February 2012.
The Toronto Stock Exchange (the "TSX") has conditionally approved the issuance of the Consideration Shares. Listing is subject to Horizonte fulfilling all of the requirements of the TSX.
The Consideration Shares, will, when issued, rank pari passu in all respects with the existing issued shares of Horizonte.
Lara has undertaken to Horizonte not to dispose of the Consideration Shares for a minimum of 12 months following their date of admission to trading on AIM .
About Horizonte Horizonte Minerals plc is an AIM and TSX listed exploration and development Company with a portfolio of nickel and gold projects in the Carajas District of Brazil.The Company is focussed on creating value by generating and rapidly advancing exploration projects in tandem with joint ventures with major mining companies, providing mid-term cash flow, which is then used to develop the business and pipeline projects.
Horizonte has two committed major mining partners: Teck Resources Limited, a major strategic shareholder in the Company, and AngloGold Ashanti Limited, a JV partner on the gold portfolio.
Horizonte owns 100 per cent of the advanced Araguaia nickel project located to the south of the Carajas mineral district of northern Brazil.; the project has the potential to deliver a resource with size and grades comparable to other world-class projects in northern Brazil.
In addition, Horizonte and AngloGold Ashanti have a US$5.3 million exploration alliance to generate and develop new and existing gold targets within two areas of Brazil and a further JV with the major whereby AngloGold Ashanti can earn into 51% of the Falcao gold project by expending US$4.5 million over three years with the right to earn a further 19% by taking the project to Pre-feasibility Study.
Horizonte is well funded to accelerate the development of its core projects.