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Shares of Horizonte Minerals Plc (LON: HZM) are down 28.7% from their February highs are approaching a medium-term support level. Will it hold to trigger a rally higher?

The mining company’s shares have fallen since mid-February after announcing that it had raised £18 million to help fund the construction of its Araguaia nickel mine located in Brazil.

The miner today revealed that it had raised another US$9.2 million (£6.6m) via a private placement deal in Canada after issuing special warrants at 7.5 pence per share.

The recent fundraising activities are a significant factor behind the share’s latest decline, and investors are hoping that the company has completed its fundraising activities for now.

Horizonte Minerals has now exceeded its proposed target of raising $25 million to fund the construction of its Araguaia nickel mine, which had stalled last year, plunging the company into massive losses.

The mining company was recently awarded a construction license to develop its Araguaia Ferronickel Project's power line, bringing it closer to the project's construction.

Investors will be waiting keenly for updates on the project. The miner now has the necessary funding to kickstart the project and unlock the mines massive nickel potential boosted by the rising demand for the metal.

Horizonte Minerals share price.

Tradingview chart of Horizonte Minerals share price 10-03-2021

Horizonte Minerals shares are down 28.7% from their February highs. Can they reverse course and rally higher?

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