Horizon Minerals Ltd (ASX:HRZ) will continue to progress the Cannon gold development in WA’s Goldfields into production despite being advised by FMR Investments Pty Ltd that it is no longer in a position to proceed with the proposed joint venture transaction.
With Horizon committed to bringing Cannon into production, the company continues to progress the development of the underground mine.
Initial clearing works have been undertaken and dewatering pipeline construction is beginning this week, which will enable the Cannon pit to be dewatered and expose the underground portal position.
FMR not able to proceed
FMR has advised that it is not able to proceed with the arrangement at the current time due to operational issues and a change in capital deployment priorities within its own business group.
It has, however, confirmed that it will honour the current 200,000-tonne processing allocation for Horizon at its Greenfields processing plant near Coolgardie in 2024.
Extensive gold assets
Horizon has extensive in-ground assets and remains committed to monetising its extensive portfolio in a time of high gold prices in Australian dollar terms through contract mining and toll treatment or joint ventures.
As a result, the company has been in discussions with several joint venture/contractor parties for mining on several of its underground and open pit gold deposits and will now also consider these parties for the Cannon underground mining.
Expenses reduced
Horizon has also reduced its corporate and employment expenses moving forward in excess of $1 million per annum, reducing staff from 17 to 10 since June 2022.
The company has been active in divesting and monetising non-core assets to reduce holding costs and expenditure commitments by $750,000 since July 2023, while generally still having upside to any potential success.
Horizon continues to evaluate selective low-cost, value-accretive opportunities to add to the portfolio.
Cash at bank currently stands at $7 million plus ~$7.8 million in listed company investments plus $3 million in Vox shares pending issue.