Midtier gold miner Horizon Minerals is continuing with the divestment of noncore assets, announcing on Monday that it will sell 62 prospecting licences, covering 10 170 ha east of Kalgoorlie, to Northern Star.
Northern Star will pay Horizon A$3.1-million in cash for the tenements, as well as additional potential deferred payments including A$20/oz for any Joint Ore Reserves Committee-compliant mineral resource estimate on the tenement, capped at two-million ounces, and a net smelter return of 0.5% on all metals and minerals extracted from the tenements.
These tenements are considered noncore for Horizon and will save the company more than A$400 000 of yearly holding costs.
“We see this as a sound divestment for Horizon in gaining A$3.1-million in cash in challenging market conditions,” commented CEO Grant Haywood.