Horizon Minerals Ltd (ASX:HRZ) has received a cash payment of $3.1 million today, having finalised the divestment of 62 non-core tenements to Northern Star Resources Ltd (ASX:NST).
HRZ says the sale will save the company more than $400,000 in annual holding costs, while also allowing a better focus on its core projects, consolidating Horizon’s portfolio and reducing administration time.
“Importantly, we retain upside to any future success on the ground being divested through potentially lucrative deferred cash payments for resource discovery and production,” Horizon Minerals CEO Grant Haywood said in a previous announcement.
Vox Royalty opts for share issue
Horizon Minerals previously divested royalties covering the Janet Ivy and Otto Bore gold projects in the Western Australian goldfields to Vox Royalty Corp (TSX-V:VOX).
The transaction included a $4 million cash payment coupled with an option to provide the remaining payment in $3 million of cash or Vox shares.
Vox has opted to issue shares to cover the second portion of this payment, which will be subject to a four-month escrow period.
The shares will be issued within 10 days of Vox receiving cumulative payments of $750,000 from the transaction royalties.
While this has not yet been received, the two parties are still operating within the terms of the agreement.