Horizon Minerals has announced that its wholly owned unit, Poseidon Nickel, has signed a binding heads of agreement (HoA) to sell the Lake Johnston project to Forrestania Resources.
The deal values the 100%-owned asset at $22.93m in total consideration.
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The transaction is structured with $30m in cash and $5m in Forrestania fully paid ordinary shares, with completion subject to various conditions.
Horizon managing director and CEO Grant Haywood said: “Lake Johnston was acquired through the ~$30m merger with Poseiden and is considered a non-core asset, with our focus on the refurbishment and restart of the Black Swan processing facility to be fed with Horizon’s 100%-owned gold resources.
“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. We are pleased to retain upside to the Lake Johnston Project as a shareholder of Forrestania.”
Under the terms of the binding HoA, the consideration for the Lake Johnston project will be delivered in phases, namely a non-refundable A$2m cash payment upon HoA execution followed by A$14m in cash upfront on execution of the full form agreement.
A further A$14m in cash will be paid on completion, along with the issuance of A$5m in fully paid ordinary shares in Forrestania.
Completion of the transaction is contingent on several conditions including obtaining regulatory approvals or waivers, and all required third-party consents including governmental consent for the transfer of tenements.
It also requires Forrestania to complete capital raising to fund the acquisition and the execution of all necessary deeds of assignment for the asset transfer.
Horizon intends to use the proceeds from the divestment to advance its wholly owned Black Swan project, fund long-lead items for the refurbishment of the Black Swan processing plant and explore potential mergers and acquisitions.
The pre-feasibility study (PFS) for the Black Swan processing facility is progressing on schedule and has been bolstered by the recent acquisition of the Gordons Dam Project.
Both parties are working towards finalising and executing a full form asset sale and purchase agreement within 30 days of the HoA, with an option to extend if required.
The transaction is expected to be completed by the end of January 2026.
In January of this year, Horizon secured A$9.62m of investment through a private placement with Golden Crane Holdings.
