Horizon to sell Lake Johnston project to Forrestania Resources

Horizon Minerals has announced that its wholly owned unit, Poseidon Nickel, has signed a binding heads of statement (HoA) to merchantability the Lake Johnston task to Forrestania Resources.

The woody values the 100%-owned plus astatine $22.93m successful full consideration.

The transaction is structured with $30m successful currency and $5m successful Forrestania afloat paid mean shares, with completion taxable to assorted conditions.

Horizon managing manager and CEO Grant Haywood said: “Lake Johnston was acquired done the ~$30m merger with Poseiden and is considered a non-core asset, with our absorption connected the refurbishment and restart of the Black Swan processing installation to beryllium fed with Horizon’s 100%-owned golden resources.

“The divestment allows Horizon to fortify its equilibrium expanse and bring successful currency to proceed to beforehand the Black Swan processing installation and surrounding golden projects. We are pleased to clasp upside to the Lake Johnston Project arsenic a shareholder of Forrestania.”

Under the presumption of the binding HoA, the information for the Lake Johnston task volition beryllium delivered successful phases, namely a non-refundable A$2m currency outgo upon HoA execution followed by A$14m successful currency upfront connected execution of the afloat signifier agreement.

A further A$14m successful currency volition beryllium paid connected completion, on with the issuance of A$5m successful afloat paid mean shares successful Forrestania.

Completion of the transaction is contingent connected respective conditions including obtaining regulatory approvals oregon waivers, and each required third-party consents including governmental consent for the transportation of tenements.

It besides requires Forrestania to implicit superior raising to money the acquisition and the execution of each indispensable deeds of duty for the plus transfer.

Horizon intends to usage the proceeds from the divestment to beforehand its wholly owned Black Swan project, money long-lead items for the refurbishment of the Black Swan processing works and research imaginable mergers and acquisitions.

The pre-feasibility survey (PFS) for the Black Swan processing installation is progressing connected docket and has been bolstered by the caller acquisition of the Gordons Dam Project.

Both parties are moving towards finalising and executing a afloat signifier plus merchantability and acquisition statement wrong 30 days of the HoA, with an enactment to widen if required.

The transaction is expected to beryllium completed by the extremity of January 2026.

In January of this year, Horizon secured A$9.62m of concern done a backstage placement with Golden Crane Holdings.

"Horizon to merchantability Lake Johnston task to Forrestania Resources " was primitively created and published by Mining Technology, a GlobalData owned brand.