Horizon Minerals Limited has reached agreement with Labyrinth Resources, formerly known as Orminex Ltd, to acquire the remaining 50% of the high-grade Penny’s Find gold project located 50km northeast of Kalgoorlie in the Western Australian goldfields.
Earlier this year, Horizon entered into a 50:50 Joint Venture with Labyrinth, completed an RC and diamond drilling program and compiled an updated Mineral Resource estimate.
Labyrinth, which recently announced the acquisition of projects in Canada, have agreed to divest their remaining 50% interest in the joint venture for:
- A$500,000 in cash at settlement
- A$250,000 in fully paid ordinary shares in Horizon at settlement at a deemed price based on the 10-day VWAP and escrowed for 6 months
Horizon to assume future deferred payment obligations
- Mining start payment of $200,000
- First gold payment $200,000
- Contingent non-commencement of mining payment of $100,000
- Net smelter royalty of 5%, payable on the first 50,000 ounces produced from M27/156 and thereafter a 2.5 % net smelter royalty
The Agreement is expected to complete in the March Quarter 2022.