Divestments

ASX HRZ:

Horizon has previously owned a number of royalties and rights 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.

VOX ROYALTY CORP DEFERRED PAYMENT OF A$3M OUTSTANDING TO HORIZON

As announced to the ASX on 29 March 2021, Horizon Minerals Limited (ASX: HRZ) (“Horizon” or the “Company”) is pleased to advise it has executed a binding royalty sale and purchase agreement with Vox Royalty Corp. (TSX: VOX) (“Vox”) to divest its 100% interest in two royalties covering the Janet Ivy and Otto Bore gold projects in the Western Australian goldfields.

Since 2001, Horizon has held the Janet Ivy royalty which comprises a A$0.50 per tonne payment on ore mined and treated from the Janet Ivy tenements owned by Norton Goldfields Ltd. In 2018, the Company divested its interest in the Lehmans Gold joint venture to Saracen Mineral Holdings (now Northern Star Resources) for A$2.5 million in cash. As part of the divestment, a 2.5% Net Smelter Royalty is payable once production reaches 42,000 ounces from the Otto Bore tenements and ends on production of 100,000 ounces.

Under the Agreement, Vox will pay A$7 million in cash and shares on the following terms:

  • A$4 million in cash upon completion (received); and
  • A$3 million in cash or Vox shares at Vox’s election (priced on a 30-day VWAP basis) upon Vox receiving cumulative payments of A$750,000 from the transaction royalties (payment outstanding).
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