Horizon Minerals (ASX:HRZ) has signed a binding share sale agreement with private company Charter Minerals to take full control of 2 greenfield lithium prospects in Western Australia.
Together, the prospects cover an area of 33km-square near the town of Bridgetown, and they lie less than 20km from the ‘world-class’ Greenbushes Lithium Mine.
Under the share sale agreement, Horizon, which has a $24.39 million market capitalisation, will pay Charter $75,000 in cash and 4 million ordinary HRZ shares in return for 100% ownership of the prospects.
Horizon says the Bridgetown-Greenbushes package has received little modern exploration, and it plans to undertake a process of data acquisition, compilation, and review ahead of initial fieldwork in the area.
Commenting on the lithium prospect acquisition, Horizon Minerals Chief Executive Officer (CEO) Grant Haywood says: “We are very pleased to have acquired and pegged this prospective ground in a world-class lithium province with strong potential for pegmatite-hosted lithium mineralisation.
We continually assess opportunities to add value accretive projects to the business and moved quickly to secure this low-cost opportunity when it presented. These projects build upside and diversification to our portfolio of gold and silver-zinc projects with minimal distraction from our current focus.
We will progress these projects in parallel with our commitment to transitioning to a gold producer in early 2024, commencing from our Cannon underground gold project.”
“These projects build upside and diversification to our portfolio of gold and silver-zinc projects with minimal distraction from our current focus”
Horizon has also applied for 5 new exploration licences near the Charter tenements.
These include 4 small exploration licences covering a total of 15km-square that sit close to Bridgetown, as well as a 214km-square tenement (ELA70/6555) 40km northeast of Bridgetown.
According to Horizon, ELA70/6555 contains a number of historical and anomalous soil results that could be related to pegmatite intrusives.
Horizon Minerals is an ‘emerging’ mid-tier gold producer with an extensive portfolio of ‘highly prospective’ gold projects in the Western Australian goldfields. As of 30 June 2023, the company had $5.799 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Horizon Minerals
