Horizon owns a number of royalties linked to producing, development and exploration projects which provide current or potential revenue streams to support ongoing activities.
Menzies and Goongarrie Divestment (Kingwest)
Horizon agreed to divest its Menzies and Goongarrie gold projects 80 to 130 km north of Kalgoorlie-Boulder in Western Australia to Kingwest Resources Limited (ASX: KWR) (“Kingwest”) in 2019 for a total consideration of A$8 million.
The divestment comprised 38 mining, prospecting and exploration licences with a current JORC resource of 195,000 ounces. Under the agreement, Kingwest will pay A$3.375 million in cash and $4.625 million in Kingwest shares on the following terms:
- A$750,000 in cash on execution (received)
- A$1 million in cash and $3 million in Kingwest shares (at a deemed price of $0.15 per share and held in voluntary escrow for 18 months) on settlement (received); and
- A$1.625 million in cash and A$1.625 million in Kingwest shares (the lower of the 30 day VWAP or $0.15 per share) 18 months after settlement (due no later than March 2021).
Horizon became a substantial shareholder in Kingwest with Board representation in a non-executive capacity, and has a right to process or purchase any gold bearing ore from the sale tenements under standard commercial terms.
Horizon also attains a subordinated right to process ore from the divestment package at the proposed Boorara Processing Facility.