In the absence of any update on crucial financing discussions, Horizonte Minerals shares have resumed their decline and have fallen beneath 20p in early trade on Wednesday.
Last week, the nickel miner issued a warning they had miscalculated the capital requirements to achieve first production at their Araguaia nickel mine in Brazil.
The company said they were exploring financing options to plug the 35% increase in capital expenditure requirements but are yet to issue any further details.
The void is increasing speculation around Horizonte’s ability to raise the finance and how heavily existing shareholders will be impacted by any funding package.
Horizonte Minerals made huge progress in securing funding for the Araguaia mine last year and has started mine construction at the project. Funding uncertainties will delay the commencement of production until later in 2024.
From a technical perspective, the intraday lows around 14p may have to be tested for Horizonte Minerals shares to build a formidable base.