Cannon Development Update
Perth, Nov 13, 2023 AEST (ABN Newswire) - Horizon Minerals Limited (
ASX:HRZ) advises that the Company has received notification from FMR Investments Pty Ltd ("FMR") that they are no longer in a position to proceed with the proposed joint venture transaction with the company at the current time due to operational issues and a change in capital deployment priorities within their own business group.
FMR confirmed that they will honour the current 200,000 tonne processing allocation for Horizon at their Greenfields processing plant near Coolgardie in 2024.
The Company is committed to bringing Cannon into production and has progressed the development of the mine. Initial clearing works have been undertaken, and the dewatering pipeline construction is commencing this week, to enable the Cannon pit to be dewatered and expose the underground portal position.
The Company has extensive in ground assets and remains committed to monetising its extensive portfolio in a time of high gold prices in Australian dollar terms through contract mining and toll treatment or joint ventures. Horizon has been in discussions with several joint venture / contractor parties for mining on several of its underground and open pit gold deposits and will now also consider these parties for the Cannon underground mining. A further update will be provided in the March 2024 quarter.
Horizon has also reduced its corporate and employment expenses moving forward in excess of $1 million per annum, reducing staff from 17 to 10 since June 2022. The Company has been active in divestment and monetisation of non-core assets to reduce holding costs and expenditure commitments by $750,000 since July 2023, while generally still having upside to any potential success. Horizon continues to evaluate selective low cost, value accretive opportunities to add to the portfolio. Cash at bank currently stands at $7.0 million plus ~$7.8 million in listed company investments plus $3 million in Vox shares pending issue.
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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