Binding 200KT Toll Milling Agreement Executed with FMR
Perth, May 13, 2024 AEST (ABN Newswire) - Horizon Minerals Limited (
ASX:HRZ) is pleased to announce that it has entered into a binding Toll Milling Agreement ("TMA") with FMR Investments Pty Ltd ("FMR") to treat 200kt of Horizon ore from the Cannon underground project, or other deposit, commencing in the December 2024 Quarter.
HIGHLIGHTS
- Binding TMA has been executed with FMR, which owns the Greenfields Mill located northeast of Coolgardie and 30km southwest of Kalgoorlie-Boulder in WA
- Horizon will arrange contract mining and hauling of ore from Cannon for ore processing at FMR's 1.0Mtpa Greenfields Mill, located ~67km by road from the Cannon Project
- An agreed 200kt of ore will be processed over a period of eight months, commencing in the December 2024 Quarter
- The TMA contains competitive ore treatment rates with the payment structure as follows:
o Horizon is responsible for delivery of each stockpile to the Greenfields Mill ROM near Coolgardie
o Payment of processing costs must be made before the value of the processed and refined gold at the Perth Mint is transferred from FMR's metal account to Horizon
o If the delivery schedule is missed Horizon will forfeit its allocated tonnes for that month and from the overall 200kt allocation
- An Ore Reserve for Cannon has already been established including forecast economics for the ore to be processed via a Toll Milling Agreement
- Cannon is fully environmentally permitted (with last mining in 2017) with pre-production activities are already underway, including dewatering of the open pit in preparation for underground mining
- The TMA has flexibility that Horizon can treat Horizon ore other than Cannon, including Horizon's own current resources or those acquired through the proposed merger with Greenstone Resources Limited, provided sufficient notice is provided to FMR
Commenting on the toll milling agreement, Chief Executive Officer Mr Grant Haywood said:
"We are very pleased to have converted our 200,000 tonne allocation with FMR into a formal Toll Milling Agreement, and look forward to working closely with them as ore deliveries will commence later this calendar year. This agreement is in addition to our 1.4Mt ore sale agreement with Paddington announced a week ago. Together this will see us generating cash flow from two fronts in this fantastic gold price environment before the end of 2024."
Next Steps
- AMC Consultants has been engaged and undertaken a review of the Cannon Ore Reserve and will progress the revised key financial outcomes for the June 2024 Quarter
- Finalise engagement with underground mining and haulage contractors to finalise tenders for Cannon
- Complete the proposed merger with Greenstone Resources to enhance the long-term production profile with development ready high-grade projects
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/WUABZYMW
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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