Horizon Minerals Ltd (ASX:HRZ) has reached agreement with Northern Star Resources Ltd (ASX:NST) to a tenement exchange in the WA Goldfields for nil cash consideration.
The transaction will see Horizon divest its 100% interest in the Anthill, Blister Dam, New Mexico, White Flag and Kanowna North tenements and receive 100% interest in Northern Star’s Rosehill, Brilliant North and Gunga West projects near Coolgardie.
This also includes the Golden Ridge, Balagundi, Abattoir and Mt Monger projects near Kalgoorlie.
Asset swap project locations, regional geology and surrounding infrastructure
Managing director Jon Price said: “This is a sensible transaction between Horizon and Northern Star that place assets within each company’s areas of interest.
“For Horizon, it adds contiguous tenure to the Boorara Gold Project area at Kalgoorlie and additional strategic assets in Coolgardie including Rose Hill-Brilliant North tenements which give us the ability to unlock the full value of the Coolgardie Gold Project for which we continue to progress formal binding documentation and required approvals for the acquisition.”
“Significant potential for resource growth”
The tenement exchange agreement is expected to complete in the December quarter 2019 and contains conditions precedent, warranties and representations as well as other clauses that are standard for transactions of this nature.
Price added: “All acquired projects have significant potential for resource growth and for new open pit and underground discoveries.
“We look forward to updating further as things progress.”