London-based Horizonte Minerals Plc intends to raise funds amounting to $15 million so it can proceed with a feasibility study to get investors to support its nickel project in Brazil, Bloomberg News reported.

In an interview with Bloomberg, Horizonte Minerals Plc Chief Executive Officer Jeremy Martin said the company released the results of its initial evaluation of its Araguaia project in the Carajas region of Brazil that would give the go-signal to construct the nickel mine. The final part of the study would begin in the fourth quarter. The mine's first production is set three years from now, the report said.

Martin said Horizonte intends to generate around 15,000 metric tons of nickel annually costing $9,000 per ton. Nickel is expected to have a market price of $20,000 per ton at the end of this year. He added that estimates for the cost work on the assumption that Horizonte will be undertaking the $519 million project on its own. The pre-feasibility study, however, will come up with a bigger scale picture if Horizonte would construct the nickel mine with a partner. In that operation, Martin said that the cost would go up to $1.2 billion with production reaching as much as 40,000 tons annually, the report said.

Martin said that Teck Resources Ltd holds the option to buy out the firm at its bankable feasibility stage. Teck Resources is a 43% owner of Horizonte. Another owner, Anglo Pacific Group Plc also holds the option to acquire 1.5% of Horizonte's production within four months for a price tag of $12.5 million, the report said.

From being the worst performer last year, nickel has regained its footing and is so far the year's best performer on the London Metal Exchange with its 16% gain. The metal, integral to stainless steel production, is on track to getting its first yearly return in four years, the report said.