As part of a broader strategy to monetise assets, Horizon Minerals Ltd (ASX:HRZ) has successfully completed the divestment of its Gunga West Gold Project near Coolgardie in WA.
Sale complete
The company finalised the transaction with FMR Investments Pty Ltd under which it would divest its entire 100% interest in the Gunga West project to FMR.
This divestment was facilitated through a deposit of $100,000 in cash and a subsequent $300,000 cash payment upon completion.
Additionally, Horizon Minerals secured access to FMR's Greenfields toll mill in Coolgardie for ore treatment, subject to commercial terms, with a capacity of 200,000 tonnes.
The company has now received the $300,000 cash payment that winds up the deal – a delay in finalising the divestment was primarily attributed to the process of obtaining third-party consents.
CEO Grant Haywood said: “We are continually reviewing our extensive portfolio in the WA Goldfields.
Strategy of monetisation
“The sale of these projects is in line with our strategy of monetising our assets through either divestment of non-core assets or bringing them into production as we have successfully demonstrated in the past.
“The funds received advance our exploration and mine development strategy, reduce holding costs and distraction, and enable increased focus on our core projects.”
Horizon Minerals has also received $400,000 from Metal Hawk Limited for another sale, paid in two forms: $200,000 in cash and $200,000 worth of MHK shares.
Horizon has fielded numerous expressions of interest regarding the potential divestment of additional non-core assets in the northern and eastern Kalgoorlie regions.
The company is evaluating these expressions of interest in line with its continuous disclosure obligations and will announce details of these potential divestments as they arise.
About Horizon Minerals
Horizon Minerals is a leading Australian gold exploration and development company with a strong portfolio of assets in the West Australian goldfields.
The company is committed to unlocking the potential of its projects through systematic exploration, resource definition and development activities.
Horizon Minerals is focused on maximising shareholder value by strategically divesting non-core assets and advancing key projects towards production.