Horizon Minerals (ASX:HRZ) has signed a binding heads of agreement with Forrestania Resources (ASX:FRS) for the divestment of its non-core Lake Johnston Project in Western Australia.
Under the deal, Horizon will receive a $2 million non-refundable cash deposit, $14 million cash on executing the full form agreement, as well as $14 million cash on completion. Forrestania Resources will also issue $5 million worth of shares to Horizon.
The transaction is subject to receiving necessary approvals, as well as Forrestania completing a capital raise to fund the acquisition.
Horizon CEO Grant Haywood says Lake Johnston was acquired through the $30 million merger with Poseidon Nickel and is considered a non-core asset.
“The divestment allows Horizon to strengthen its balance sheet and bring in cash to continue to advance the Black Swan processing facility and surrounding gold projects,” Haywood says.
Horizon, which has a market capitalisation of $191 million, is focused on the Black Swan Project in which a Prefeasibility Study is nearing on track to be completed for the current quarter.
The company will continue to grow existing resources at Black Swan which will further enhance the attractiveness of the overall project.
A 30,000m drilling program is currently being undertaken at the Burbanks Project. The first 15,000m as infill drilling aims to improve resource confidence and a further 15,000m of extensional drilling aims to grow the resource.
In 2026, Horizon will aim to expedite further drilling programs across its land package.
Horizon Minerals is focused on becoming Western Australia’s next standalone gold producer across its Western Australian portfolio of projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Horizon Minerals
