COMPLETION OF MENZIES AND GOONGARRIE GOLD PROJECT DIVESTMENT
As announced to the ASX on 9 July 2019, the Company agreed to divest its 100% interest in the projects to Kingwest Resources Limited (ASX:KWR) ("Kingwest") for a total consideration of A$8 million on the following terms:
- An initial deposit of $750,000.
- On settlement:
o A further $1M in cash; and
o Issuing 20M ordinary shares in Kingwest to Horizon at a deemed issue price of $0.15 per share subject to voluntary escrow from date of issue to the earlier of (a) 18 months following settlement and (b) 3 months following the payment of the deferred consideration.
- A deferred payment no later than 18 months after settlement of:
o A further $1.625M in cash; and
o $1.625M in value of ordinary shares in Kingwest at a deemed issue price being the lower of $0.15 per share and the 30 day VWAP (subject to shareholder approval and Horizon not exceeding 19.9% ownership in Kingwest).
All conditions precedent including provision of signed transfers, all mining information and statutory consents have now been completed or waived, and the settlement payment and share issue received from Kingwest.
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