Horizon Minerals Limited: Metal Hawk Sign Yarmany West Option and Sale Agreement
Perth, Australia - Horizon Minerals Ltd. (ASX:HRZ) is pleased to advise that it has entered into a binding option and sale deed ("Option") with Metal Hawk Limited (ASX:MHK) ("Metal Hawk" or "MHK") to purchase an interest in seven tenements within the Company's Yarmany project area ("Tenements").The Option relates to all mineral rights over seven Exploration Licences covering an area of 98 blocks approximately 40 kilometres west of Kalgoorlie. The Option provides for the following:
- MHK paying Horizon a $400,000 non-refundable option fee within five days of signing the Option, comprising $200,000 in cash and $200,000 in MHK shares, with the number of shares determined by the 20-Day VWAP prior to execution
- MHK must incur at least $1.0m of on ground exploration expenditure on the Tenements prior to exercising the Option, which has a term of 24 months
- MHK may withdraw from the Option with 30 days notice, or allow the Option to lapse, after incurring a minimum of $500,000 of exploration expenditure, with all tenure remaining 100% owned by Horizon in those circumstances
- If MHK exercises the Option, then at Horizon's election, Horizon may:
- Sell 100% of its interests in the Tenements to MHK for $1.0m completion consideration, with this consideration to be settled in either cash, shares or any combination of both at MHK's election; or
- Sell 80% of its interests in the tenements to MHK and forego the completion consideration, but retain a 20% interest free carried to a decision to mine at which time a Joint Venture (JV) will be formed with MHK
- MHK shall have a licence to explore for minerals on the Tenements during the Option period and must meet annual expenditure commitments and keep the Tenements in good standing
- All MHK Option fee shares, and completion consideration shares issued, shall be subject to voluntary escrow of six months
Commenting on the Option, Horizon Chief Executive Officer Mr Grant Haywood said:
"The option and sale agreement is a positive outcome for both parties. It fits with Horizon's strategy of focussing on gold assets we can bring into production and rationalising our large tenement holding where value can be realised by divesting non-core assets to capable groups who can take them forward. This transaction also strengthens our balance sheet and reduces our holding costs."
"We have a strong relationship with Metal Hawk and, as a shareholder and potential JV partner, we wish them well in advancing this prospective early stage project."
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About Horizon Minerals Limited:
Horizon Minerals Ltd. (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.
Source:
Horizon Minerals Ltd.
Contact:
Grant Haywood Incoming CEO T: +61 8 9386 9534 E: grant.haywood@horizonminerals.com.au Michael Vaughan Media Relations - Fivemark Partners T: +61 422 602 720 E: michael.vaughan@fivemark.com.au
