- Horizon Minerals completed the divestment of its 100% interest in Nanadie Well Copper Project to Cyprium Metals Limited.
- The agreement was carried out for the total consideration of A$1.5 million in cash and shares on a 20-day VWAP basis.
- Horizon Minerals divested Nanadie Well Copper Project with the core focus to develop a stand-alone gold project in the Kalgoorlie and Coolgardie regions.
- Horizon Minerals revealed that it had received the completion of payment as well as share issue from Cyprium.
Horizon Minerals entered into Sales and Purchase Agreement with Cyprium Metals, which is a base metal exploration company. Horizon’s central objective from the divestment of the Nanadie Well Project is to streamline its approach towards gold exploration.
As already indicated by Horizon’s Managing Director Mr Jon Price, the Company’s principle focus is dedicated towards the development of a stand-alone gold project in the Kalgoorlie and Coolgardie regions. Significantly, Horizon Minerals in August commenced the largest ever drilling program of +70,000m within 75km of Kalgoorlie-Boulder in the world-class Goldfields region of Western Australia.
The completion of the divestment of Nanadie Well would bolster the primary gold-exploration objective. It would also retain exposure of Horizon Minerals to Nanadie Well along with the current copper projects of Cyprium in the Murchison as a substantial shareholder.
With this backdrop, let us dig deep into the details of the agreement and the Nanadie Well Project.
Lens through the Agreement
As Horizon Minerals announced to the ASX on 14 July 2020, it has agreed to divest its 100% interest in tenements E51/1040 and M51/887. The tenements are located ~75km to the east of Hollandaire copper deposits held by Cyprium Metals and include the Nanadie Well Cu-Au Project.
With the agreement, Horizon Minerals has also granted Cyprium a mining lease, M51/887 for the Nanadie Well Project.
The agreement between both the parties was agreed for a total consideration of A$1.5 million in cash and shares, based on 20-day Volume Weighted Average Price (VWAP).
Horizon Minerals indicated that it had received the completion of payment as well as share issue from Cyprium. Furthermore, all conditions precedent, which includes all mining information, signed transfers and statutory consents have also now been completed.
About the Project
The Nanadie Well Project is situated in the Murchison District of Western Australia within mining lease M51/1040. The project lies approximately 650km northeast of Perth and around 75 km south-east of Meekatharra.
Source: CYM ASX Update, Dated 15 September 2020
Horizon Minerals estimated a 2004 JORC compliant mineral resource of 151.5kt contained copper and 74.2koz contain gold was hosted by the project. Cyrium Metals plans to include the Nanadie Well Copper project in its ongoing scoping study of Cue Copper Project.
Way Forward for Horizon Minerals
The proceeds from the divestment would aid the Company to accelerate its exploration and advance long-term mine and mill development studies.
- Horizon Minerals is eyeing to complete its large scale 70,000m drilling program and additional exploration activities across its extensive 850km2 landholding.
- The Company targets the completion of the consolidated Feasibility Study for the June Quarter 2021
- Additional regional consolidation opportunities are being pursued by the Company within a 75km radius of a proposed stand-alone processing facility, located at the Boorara gold mine
HRZ shares is trading at $0.135 (AEST 01:00pm) on 16 September 2020. The stock has generated a return of 80% in the past six-months.
[All currency is in AUD unless stated otherwise]
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