Intermin Divests Menzies and Goongarrie Gold Projects
The acquisition comprises 38 mining, prospecting and exploration licenses with a current JORC resource of 195,000 ounces. Under the agreement, Kingwest will pay $3.375 million in cash and $4.625 million in Kingwest shares on the following terms 2:
- $750,000 in cash on execution (received), $1 million in cash and $3 million in Kingwest shares at a deemed price of $0.15 per share on settlement expected in the current September Quarter
- $1.625 million in cash and $1.625 million in Kingwest shares (the lower of the 30 day VWAP or $0.15 per share) 18 months after settlement
Intermin will become a substantial shareholder in Kingwest with Board representation in a non-executive capacity and will have a right to process or purchase any gold bearing ore from the sale tenements under standard commercial terms. The transaction is subject to Kingwest completing a $4 million capital raising and other standard conditions customary for a transaction of this nature.
Intermin remains fully focussed on its core projects in the Kalgoorlie and Coolgardie regions, completing the consolidated Feasibility Study and advancing mine development and production plans 3. The divestment to a well credentialed and focussed exploration company is line with our strategy of monetising assets to assist in funding future growth plans while maintaining exposure and upside. The payment structure enables Kingwest to fund exploration while providing cash and shares to Intermin broadly aligned with the proposed payment structure for the potential Coolgardie Gold Project acquisition as announced to the ASX on the 11 February and 2 July 2019.
Commenting on the Menzies/Goongarrie divestment, Managing Director Mr Jon Price said:
"Intermin's core focus is firmly set on developing a standalone gold project in the Kalgoorlie and Coolgardie regions and this divestment supports this objective while retaining exposure to both Menzies/Goongarrie and Kingwest's current gold projects in the north-eastern Goldfields."
"The deal is another step in Intermin's strategy of monetising assets through mine development or generating value through the divestment of lower priority projects to support future growth plans and minimising shareholder dilution wherever possible."
"We look forward to working with the Kingwest team which is an active gold explorer in the region with an excellent technical team, prospective assets and strong financial backing."
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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