Horizon Minerals (ASX:HRZ) has announced its execution of a deal with Norton Gold Fields to mine and haul 1.4Mt worth of the latter’s ore on-site the Paddington Mill.
Via a binding ore sale deal, Horizon will work at Norton’s project 56km from Boorara over 22 months commencing in Q4 of CY2024.
Horizon will take 50% of revenue minus costs based on stockpile grades within 5 days of each delivery of gold ore dropped off at Paddington. Revenue will be based on Perth Mint spot prices.
Gold prices currently hover just above US$2,300/oz, not far off recent record highs hit above US$2,400/oz.
Stockpiles will be up to 50,000t from numerous sources. Notably, the deal covers under 15% of the existing 11Mt JORC at Boorara. Horizon must be fully licenced and ready to go within 45 days.
Back in April, the company revealed it’s merging with Greenstone Resources (ASX:GSR) in a deal that continues to develop.
HRZ last traded at 3.4cps with a $23M market cap.