Horizon Minerals Ltd (ASX:HRZ) has struck a deal with fellow ASX-lister Greenstone Resources Ltd to divest its Phoenix and Kangaroo Hill gold projects.
Greenstone will pay out $300,000 in a mixture of cash and shares to acquire the West Aussie gold properties, which cover two mining leases and two prospecting licences.
Horizon will receive $150,000 in cash once both parties dot the I’s and cross the T’s on the deal, as well as $150,000 worth of GSR shares with a six-month voluntary escrow.
“The sale of these non-core tenements provides Horizon with both cash and upside exposure to these projects and the other exciting projects being advanced by the Greenstone team,” said managing director Jon Price.
Ultimately, the divestment brings the company one step closer to its key vision: to become Western Australia’s next standalone gold producer.
The company holds several gold projects in Kalgoorlie and Coolgardie, including the half-million-ounce Boorara project, which is currently in production.
Feasibility studies are currently underway for a large-scale development at Boorara, while Horizon also owns a collection of satellite projects that together host 548,000 ounces in gold resource.
Horizon expects to seal the Phoenix and Kangaroo Hill sale this quarter, as long as it can finalise due diligence, ministerial consent, any third party assignments and provide mining information.