Horizonte Minerals shares dropped on Wednesday after the group completed an oversubscribed £70.5m fundraise to help fund the development of their Brazilian nickel and achieving assets first production at Araguaia in 2024.
The Horizonte Minerals share price fell beneath the 90.5p placing price on Wednesday to trade at 88p at the time of writing.
Due to restrictions on making the offer available to retail investors, meaning Horizonte would have to produce another prospectus at a cost, the company opted to exclude retail from the offer.
However, any retail investors that would have liked to participate in the offer can now buy Horizonte Minerals shares at a lower price on the open market.
There was strong demand for the offer from institutions which was oversubscribed with the gross proceeds increasing from an initial target of £61.7m to £70.5m.
“I am pleased to announce the completion of the Fundraise. I would like to thank all existing shareholders for their continued support and welcome our new shareholders as we work towards first production at Araguaia in Q1 2024 and in parallel progress feasibility work at Vermelho,” said Jeremy Martin, Chief Executive Officer of Horizonte.
“Significant progress has been made since we broke ground at Araguaia in May and we remain well positioned to transition into a scalable Tier 1 nickel producer. We look forward to updating the market as construction advances at Araguaia.”