Horizon Minerals Ltd (ASX:HRZ) has executed a formal option agreement with Metal Hawk Ltd covering nickel rights on 12 granted tenements adjacent to its Cannon Gold Project area near Kalgoorlie, Western Australia.
The option granted under the formal agreement relates to nickel rights over 12 prospecting and exploration licences covering about 61 square kilometres to complement and consolidate Metal Hawk’s new Berehaven Nickel Project.
Metal Hawk had previously signed an option to purchase 100% of the nickel rights from Horizon for total consideration of 4.5 million shares last quarter.
“Unlocking value”
Horizon Minerals managing director Jon Price said: “Horizon’s core focus remains firmly set on developing a standalone gold project in the Kalgoorlie and Coolgardie regions and the grant of the nickel rights option to Metal Hawk supports this objective while unlocking value and allowing Horizon to retain exposure to both the Berehaven Nickel Project and Metal Hawk’s current projects as a Metal Hawk shareholder.
“The strong technical team at Metal Hawk has done an excellent job with the new Berehaven nickel sulphide discovery and we look forward to further success as we continue growing our gold business."
Terms of the agreement
Horion has executed the nickel rights option agreement with Metal Hawk under the following terms:
- The issue of 1.5 million shares in MHK to Horizon on the grant of the option and a further 3 million shares in MHK on exercise of the option within the 18-month option period;
- If MHK exercises the option then the 3 million MHK shares to be issued to Horizon will be subject to escrow for 180 days;
- MHK to have a licence to explore for nickel minerals on the tenements during the option period and must meet annual expenditure commitments and assay all drill samples for gold; and
- If MHK exercises the option it will have the exclusive right to explore for, mine, process and sell nickel and associated minerals within a nickel sulphide system, with gold and all other mineral rights retained by Horizon.
About the company
Horizon Minerals Ltd is an emerging mid-tier gold producer with an extensive portfolio of highly prospective gold projects in the heart of the world-class Western Australian Goldfields.
The company has a large resource base of 1.15 million ounces of gold covering a total area of 1,100 square kilometres, growth options in multiple commodities and a clear development and production strategy.
Its asset base holds 562,000 ounces of estimated gold mineral resources within easy trucking distance of the 507,000 ounces Boorara deposit, which has approvals in place for open-pit mine development and the construction of a new processing facility.