and Resource Mining Dispute Settlement
The Teal Gold Mine was mined under a risk share - profit share structure with Resource Mining(see Note 1 below). Intermin and Resource Mining co-funding development on a 50:50 cost and risk share basis to first gold production, with the net operating cash flow thereafter as determined under the agreement between the parties to be shared 75% to Intermin and 25% to Resource Mining.
The Company outlined in its announcement to the ASX on 24 October 2018 that it had received cost variation claims from Resource Mining relating to Teal Stage 1 and Stage 2 and that the Company's Representative had made and delivered a determination in relation to the cost variation claims. The claims and the determination were not agreed between the parties and the Company reported that it was working to resolve this matter.
Intermin and Resource Mining have now agreed to a full and final settlement of this matter. The total disputed variation claims amount(see Note 2 below) was split on a 50:50 basis, while the remaining net operating cash was split 75% to Intermin and 25% to Resource Mining as originally agreed under the mining contract between the parties.
After disbursement of monies to both parties from the project joint bank accounts, Intermin's cash and investments (including GST credits) will total approximately A$7.8 million.
1 As announced to the ASX on 19 July 2016
2 As announced to the ASX on 24 October 2018
About Horizon Minerals Limited
Horizon Minerals Limited (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.
Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.
Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.
Horizon Minerals Limited