- Horizon Minerals (HRZ) has executed a binding royalty sale and purchase agreement with Vox Royalty
- Under the agreement, Horizon will divest its 100 per cent interest in two royalties spanning the Janet Ivy and Otto Bore gold projects in WA’s Goldfields
- The deal will see Vox pay $7 million in cash and shares
- This includes $4 million in cash upon completion and $3 million in cash or Vox shares at Vox’s election —priced on a 30-day volume-weighted average price basis — upon the company receiving cumulative payments of $750,000 from transaction royalties
- Proceeds from the divestments will add to Horizon’s existing cash reserves as it advances a consolidated feasibility study through to development, with a financing decision projected in the second half of this year
- Horizon shares are down by one per cent, trading at 9.9 cents each
Horizon Minerals (HRZ) has executed a binding royalty sale and purchase agreement with Vox Royalty.
Under the agreement, Horizon will divest its 100 per cent interest in two royalties spanning the Janet Ivy and Otto Bore gold projects in WA’s Goldfields region.
HRZ has held its Janet Ivy royalty, which comprises a 50-cent-per-tonne payment on ore mined and treated from tenements owned by Norton Goldfields, since 2001.
In 2018, the company divested its interest in the Lehmans Gold joint venture to Saracen Mineral Holdings (now Northern Star Resources) for $2.5 million cash.
As a part of the divestment, a 2.5 per cent net smelter royalty is payable once production reaches 42,000 ounces from the Otto Bore tenements, ending on the production of 100,000 ounces.
The new deal will see Vox pay $7 million in cash and shares.
This figure includes $4 million in cash upon completion and $3 million in cash or Vox shares at Vox’s election —priced on a 30-day volume-weighted average price basis — upon the company receiving cumulative payments of $750,000 from transaction royalties.
Horizon Minerals Managing Director Jon Price said the company’s core focus “remains firmly set on developing a standalone gold business in the Kalgoorlie and Coolgardie regions.”
“This divestment further strengthens our balance sheet as we progress the large-scale drilling program and advance the consolidated feasibility study through to a development decision and financing stage in the second half of 2021,” Jon added.
HRZ expects the agreement to be completed in this year’s June quarter.
Horizon Minerals shares are down by one per cent, trading at 9.9 cents each at 4:29 pm AEDT.