Horizon Obtains Full Ownership of the WA Gold Project

Horizon Minerals has acquired the remaining 50% of Labyrinth Resources’ ASX-listed Penny’s Find high-grade gold project in the Eastern WA Goldfields for a combined $500,000 in cash and $250,000 in cash. shares. Horizon now owns 100% of the high-grade gold project and associated properties through its wholly-owned subsidiary Black Mountain Gold.

Additional terms of the agreement provide that Horizon assumes obligations for future deferred payments of up to $400,000 related to potential mining results.

If Horizon were to commission the project, it would pay a 5% net smelter royalty payable on the first 50,000 ounces produced from the mining lease and a 2.5% net smelter royalty thereafter.

Open pit mining by ASX-listed Empire Resources produced 18,300 ounces grading 4.47 grams per tonne of gold from the project in 2018.

The intention to recover the remaining 50% was announced on December 20 last year, but the execution of the agreement was delayed due to old access and compensation agreements which needed to be updated. .

Horizon acquired its initial 50% stake in the project in March 2021 when it formally entered into a joint venture agreement with Labyrinth Resources under its former Orminex banner.

Initial terms of entry included a cash payment of $1.5 million to Orminex and Horizon to fund only the first $1 million of pre-development expenditures with joint venture partners to fund the co-funded project. equal thereafter.

The deal also included an option for Horizon to earn the remaining 50%.

At the time, Penny’s Find held a total resource estimate of 248,000 tonnes grading 7.04 grams per tonne gold containing a total of 56,000 ounces.

The acquisition of Penny’s Find aligns with Horizon’s regional consolidation strategy which aims to create a stand-alone production business with the additional ounces increasing the company’s total gold base by 1.15 million ounces.

The explorer is targeting an updated resource for Penny’s Find in the September quarter and a development decision for the mine in the last quarter of the year.

The acquisition is another of Horizon’s successful consolidations around Northern Star Resources’ Golden Mile gold mine of more than 28 million ounces.

Horizon was born from the merger of Interim and Macphersons in 2019, resulting in the formation of a single entity with the 448,000 ounce Boorara deposit as its cornerstone and a strong selection of surrounding projects.

Since then, the company has continued to consolidate, build and develop its assets in the region.

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