Horizon Minerals Ltd (ASX:HRZ) has received A$4 million in initial consideration after completing the divestment of its interest in two gold royalties.
The royalty sale to Vox Royalty Corp (CVE:VOX) (OTCMKTS:VOXCF) cover the Janet Ivy and Otto Bore gold projects in the Western Australian Goldfields.
In addition to A$4 million cash, the sale consideration also includes A$3 million in cash or Vox shares at Vox’s election, upon Vox receiving cumulative payments of A$750,000 from the transaction royalties.
Background
Since 2001 Horizon has held the Janet Ivy royalty which comprises a A$0.50 per tonne payment on ore mined and treated from the Janet Ivy tenements owned by Norton Goldfields Ltd.
In 2018, the company divested its interest in the Lehmans Gold joint venture to Saracen Mineral Holdings (now Northern Star Resources) for A$2.5 million in cash.
As part of the divestment, a 2.5% Net Smelter Royalty is payable once production reaches 42,000 ounces from the Otto Bore tenements and ends on production of 100,000 ounces.
Well-funded for feasibility study
Proceeds from the royalty divestments will add to existing cash reserves as Horizon advances the consolidated feasibility study on its projects through to a development and financing decision in the second half of 2021.
Cash at bank now stands at A$13.2 million plus listed investments totalling about A$5.2 million.