Horizon Copper Secures New Credit Facility to Boost Flexibility and Growth
Horizon Copper Corp. (TSX-V: HCU) (OTCQX: HNCUF) has lined up fresh financing to support its next phase of growth and keep operations nimble. The company has entered into a revolving credit agreement with National Bank of Canada and The Bank of Nova Scotia, providing access to as much as US$30 million. The agreement also includes an additional unsecured accordion feature of US$20 million. In total, Horizon Copper can draw up to US$50 million if needed, giving it room to move when opportunities arise.
Key Terms of the Credit Facility
The revolving loan is structured as a four-year facility and is set to mature in September 2028, with any extension subject to lender approval. Horizon plans to use the facility for three main purposes: to fund future asset acquisitions, to advance development work at the Hod Maden project, and to cover general corporate needs. Interest on the revolving facility is tied to SOFR, with a margin that ranges from 2.50% to 3.75%, depending on the company’s leverage at the time. In short, stronger leverage performance should translate into a lower margin within that disclosed range.
Why the leverage ratio matters
The credit agreement requires Horizon Copper to maintain a leverage ratio below 4.0x. Importantly, that calculation excludes any existing debt tied to Sandstorm Gold Ltd., a strategic growth partner for Horizon. By setting a clear ceiling on leverage while carving out existing Sandstorm-related obligations, the agreement reinforces financial discipline and preserves headroom for investment—without constraining the company’s ability to execute on its growth plans.
Executive Perspective
Erfan Kazemi, Horizon’s President & CEO, underscored the intent behind the facility: "We are pleased to expand our financing capabilities with this new Revolving Loan. This credit facility, combined with our existing cash reserves, enhances our financial flexibility as we continue to pursue growth opportunities and invest in developing the Hod Maden project." The message is straightforward: pairing committed bank lines with cash on hand helps Horizon move quickly, whether that’s on project development milestones or selectively adding assets that fit its strategy.
Horizon Copper’s Core Assets
Horizon Copper’s portfolio is anchored by three core exposures. The company holds a 1.66% net profits interest in the Antamina copper mine, one of the sector’s notable operations. It also has exposure to the Oyu Tolgoi copper mine through a 24% equity position in Entrée Resources Ltd. In addition, Horizon owns a 30% interest in the copper-gold Hod Maden project. Together, these assets provide diversified leverage to copper—supplemented by gold at Hod Maden—while offering a mix of current and future potential across different project stages.
Outlook and Growth Priorities
Looking ahead, Horizon Copper intends to expand its asset base with a focus on copper opportunities. The new revolving credit facility is designed to be a practical tool: draw when needed, repay when prudent, and redeploy as the right projects surface. In a market where demand for copper continues to shape long-term investment, that flexibility can help the company respond quickly, advance Hod Maden, and keep optionality high as the mining landscape evolves.
Conclusion
This financing marks a meaningful step for Horizon Copper as it balances discipline with ambition. The US$30 million revolving credit facility—augmented by a US$20 million unsecured accordion—adds committed, scalable liquidity ahead of key development work at Hod Maden and potential new acquisitions. With a clear leverage guardrail, SOFR-based pricing, and a portfolio that already includes interests tied to Antamina, Oyu Tolgoi (through Entrée Resources Ltd.), and Hod Maden, the company is positioning itself to act decisively while keeping an eye on balance sheet strength. The takeaway is simple: more flexibility when it counts.
Frequently Asked Questions
What exactly did Horizon Copper announce?
Horizon Copper secured a new revolving credit facility of up to US$30 million, along with an additional unsecured accordion feature of US$20 million. Combined, the company can access up to US$50 million.
How will the company use this financing?
Planned uses include funding future asset acquisitions, advancing development activities at the Hod Maden project, and covering general corporate purposes.
What are the main terms I should know?
The revolving loan has a four-year term that matures in September 2028 (extensions are at lender discretion). Interest is linked to SOFR, with a margin ranging from 2.50% to 3.75%, depending on Horizon’s leverage.
Are there any leverage requirements?
Yes. Horizon must keep its leverage ratio below 4.0x. Existing debt associated with Sandstorm Gold Ltd. is excluded from that calculation under the credit agreement.
Which assets anchor Horizon Copper’s portfolio?
The company holds a 1.66% net profits interest in the Antamina copper mine, has exposure to the Oyu Tolgoi copper mine through a 24% equity ownership in Entrée Resources Ltd., and owns a 30% interest in the copper-gold Hod Maden project.
