- Kingwest Resources (KWR) has concluded the final payments to Horizon Metals (HRZ) for the acquisition of the Menzies and Goongarrie gold projects
- The company has made the remaining cash and payment shares to close the deal, granting it full ownership of the West Australian tenements
- It comes after KWR conducted extensive research and development activities at the project, resulting in an increased mineral resource update at Menzies of 11.05 million tonnes at 1.26g/t gold
- Kingwest CEO Ed Turner said the board and management were proud of the progress made at the projects so far
- Kingwest shares have fallen 14.8 per cent following the announcement, trading at 9.8 cents
Kingwest Resources (KWR) has concluded the final payments to Horizon Metals (HRZ) for the acquisition of the Menzies and Goongarrie gold projects.
Kingwest cemented the deal via the remaining $1.62 million cash payment and around 10.83 million ordinary shares to complete the acquisition, which was initially tabled in July 2019.
The company has been able to undertake a series of exploration activities at the projects before wrapping up the buy, having recently completed a scoping study for Menzies.
The scoping study plus the recent Goongarrie Gold Project discovery, which included gold finds of six-metres at 17.2g/t gold from 94 metres within 38 metres at 3.1 g/t gold, was enough to get the board’s decision to proceed over the line.
Prior to this, Kingwest had also managed to up the mineral resource estimate at the Menzies project, clocking in at 11.05 million tonnes at 1.26g/t gold for 446,200 ounces at a 0.5g/t cut-off grade.
Kingwest CEO Ed Turner said the board and management was proud of the progress made at the projects so far.
“The company appreciates the support received from Horizon as its major shareholder during this time and looks forward to continue to realise value from both the advanced Menzies Project and greenfields exploration programs at Goongarrie,” he commented.
Kingwest shares have fallen 14.8 per cent following the announcement, trading at 9.8 cents at 4:21 pm AEDT.