in March
share placing
Not only were the shares priced at a premium to the market (just as they were at the last fund raise in 2013), but major shareholder Teck Resources (TCK:NYSE) showed its commitment by subscribing for a fifth of the new stock, leaving it with a 38.3% stake. We believe Teck will eventually acquire Horizonte or buy the project outright.
The rest of the new shares went to new Canadian institutional investors. Noticeably absent from the placing was investor Anglo Pacific (APF) which elected not to exercise an option to buy a 1.5% royalty on Araguaia for $12.5 million, due to a new investment strategy in only backing projects either about to, or already, generating cash. That means Horizonte is now royalty-free, which puts it in a stronger position when it comes to raising development finance for Araguaia.
