Horizon Minerals Limited (ASX:HRZ) Moves To 100% Ownership Of Penny’s Find Gold Project

Horizon Minerals Limited (ASX:HRZ) is pleased to advise that it has reached agreement with Labyrinth Resources Limited (ASX:LRL) to acquire the remaining 50% of the high-grade Penny’s Find gold project located 50km northeast of Kalgoorlie in the Western Australian goldfields.
As announced to the ASX on 22 March and 14 July 2021, the Company entered into a 50:50 Joint Venture with Labyrinth, completed an RC and diamond drilling program and compiled an updated Mineral Resource estimate. Labyrinth have recently announced the acquisition of projects in Canada and have agreed to divest their remaining 50% interest in the joint venture on the following terms:
– A$500,000 in cash at settlement
– A$250,000 in fully paid ordinary shares in Horizon at settlement at a deemed price based on the 10-day VWAP and escrowed for 6 months
– Horizon to assume future deferred payment obligations
– Mining start payment of $200,000
– First gold payment $200,000
– Contingent non-commencement of mining payment of $100,000
– Net smelter royalty of 5%, payable on the first 50,000 ounces produced from M27/156 and thereafter a 2.5 % net smelter royalty
The Agreement is subject to standard conditions precedent for a transaction of this nature including Ministerial consent, any third-party assignments and provision of mining information with Settlement expected in the March Quarter 2022.
The Company will now continue the evaluation of the underground deposit on a 100% ownership basis, complete further infill and extensional drilling and assess development options including near term development and toll milling and / or inclusion of the project in the consolidated Feasibility Study.
About Horizon Minerals Limited
Horizon Minerals Limited (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia’s richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.
Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.
Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to¬†Vanadium, Copper, PGE’s, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.