PERTH (miningweekly.com) – Gold developer Horizon Minerals has reached an agreement with FMR Investments to divest of its Gunga West gold project, in Western Australia.
Gunga West was acquired in 2019 as part of a larger asset swap with gold miner Northern Star Resources, and included the Rose Hill, Brilliant North and Golden Ridge tenure.
The divestment comprises seven mining leases, one prospecting licence and one miscellaneous licence making up the Gunga West project.
Under the terms of the agreement, FMR will pay A$400 000 in cash for the transaction, while also giving Horizon access to its Greenfields toll mill in Coolgardie, on commercial terms, for the treatment of 200 000 t of ore, starting in 2023.
“The sale of Gunga West is in line with our strategy of divesting noncore assets and listed investments and we will continue to do so where it adds value for shareholders,” said Horizon MD Jon Price.
“Proceeds from these sales will be used for development capital to advance the proposed sequence of underground mines using a contract mining – toll milling model delivering a greater return on investment. Securing toll milling at the Greenfields mill in Coolgardie is also a great result providing a processing solution for our Rose Hill project.”
Horizon last week completed the restructure of its 25% interest in the Richmond vanadium project, in Queensland, giving full ownership of the project over to initial public offering (IPO) vehicle Richmond Vanadium Technology in return for a 25% stake in the company.