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La Mancha deploys USD86m via strategic investment in Horizonte Minerals

La Mancha Fund SCSp (La Mancha) has deployed a total of USS86 million via a strategic investment in Horizonte Minerals Plc (Horizonte).

The investment comprises a USD71 million equity investment and a USD15 million convertible loan note (the Horizonte investment). The Horizonte Investment forms part of the broader USD633 million funding package Horizonte announced on 24 November 2021 (the Funding Package).

The Horizonte Investment represents the first investment that La Mancha has made since it announced the creation of a fund structure open to outside capital in July 2021. Horizonte intends using the Funding Package proceeds to develop its 100 per cent owned nickel project in northern Brazil. The Investment marks a significant further step towards fulfilling La Mancha’s ambition of diversifying its precious metals portfolio. La Mancha’s investment in Horizonte is its first equity investment into Latin America and the base and EV metals space. In addition, Horizonte, being a construction stage asset, complements and reinforces La Mancha’s current portfolio composition of production, royalty and exploration assets.

In line with La Mancha’s policy of providing strategic and operational support to its portfolio companies, La Mancha will place at Horizonte’s disposal the advice and expertise of its team of full-time professionals, comprising: geologists, mining engineers and investment professionals with extensive operational experience in the mining sector.

Karim Nasr, Chief Executive Officer of La Mancha, says: “Our investment in Horizonte represents La Mancha’s first deployment of newly raised capital since transitioning into a fund last June, and our first direct investment into the base and EV metals space.”

“La Mancha seeks to acquire significant stakes in junior mineral resource companies with strong managerial and geological potential and the ability to implement a long term value creation strategy. Horizonte clearly falls into that category.”

“Throughout our extensive diligence, we were impressed not only by the quality of Horizonte’s assets, but also by its team and the very high standard of work they’ve carried out to date. We were attracted to the business’s organic growth potential, coupled with the longer-term nickel product optionality to sustainably supply both the stainless steel and battery markets. We are delighted, therefore, to be able to support and accelerate Horizonte’s s team on their journey toward becoming a globally significant and responsible nickel producer.”

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