Baden Powell and Windanya Option and Sale Deed
Perth, Aug 30, 2023 AEST (ABN Newswire) - Horizon Minerals Limited (
ASX:HRZ) is pleased to advise that it has entered into a binding option and sale deed ("Option") with Dundas Minerals Limited (ASX:DUN) ("Dundas" or "DUN") to purchase an interest in 19 tenements within the Company's Baden Powell and Windanya project areas ("Tenements").
The Option relates to all mineral rights over 16 Prospecting Licences, two Mining Leases and one Mining Lease Application covering an area of 3,230 hectares approximately 45 kilometres north of Kalgoorlie. The Option provides for the following:
Dundas paying Horizon a $500,000 non-refundable option fee which consists of:
- $375,000 within five days of signing the Option, comprising $125,000 in cash and $250,000 in DUN shares, with the number of shares determined by the 5-Day VWAP prior to execution; and
- $125,000 in cash payable on the first 12-month anniversary of the execution date.
- Dundas must incur at least $500,000 of on ground exploration expenditure on the Tenements prior to exercising the Option, which has a term of 24 months. Dundas may withdraw from the Option with 30 days' notice or allow the Option to lapse, only after incurring a minimum of $500,000 of exploration expenditure and paying the option fee, with all tenure remaining 100% owned by Horizon in those circumstance
- If Dundas exercises the Option, then Horizon will:
Sell 85% of its interests in the Tenements to Dundas for $1.0m completion consideration, with this consideration to be settled in either cash, shares or any combination of both at Dundas' election; and
Retain a 15% interest free carried to a decision to mine at which time a Joint Venture (JV) will be formed with Dundas
Have priority ore processing rights from the tenements to process ore through secure processing arrangements that are on equal or better terms than other processing alternatives of the JV
Dundas 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 Dundas 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:
"We are continuing to review our suite of assets including optimisation and rationalisation of our large tenement portfolio, both through acquisition and divestment opportunities. This option agreement with Dundas fits this strategy via monetising non-core assets to a very capable team to take the project forward. It will reduce our holding costs and bring additional cash and investments into the business, whilst still retaining an interest in the projects for any potential upside."
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/Y0CG02LM
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.
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