Funding Agreed to Advance Cannon Gold Project
Perth, Oct 19, 2022 AEST (ABN Newswire) - Horizon Minerals Limited (ASX:HRZ) is pleased to advise that it has executed a binding term sheet with Nebari Partners LLC ("Nebari") for a US$5 million senior secured credit facility. The credit facility ("Facility") is comprised of a two tranche Convertible Loan Facility with US$2 million in Tranche 1 and US$3 million in Tranche 2.
The Facility is subject to conditions precedent typical for a transaction of this nature including, but not limited to, final documentation and Horizon obtaining prior shareholder approval which will be sought at the upcoming Annual General Meeting in November 2022.
In addition, the Company has executed a Deed of Variation with Aurenne Cannon Pty Ltd ("Aurenne") in relation to the deferred payment for the Cannon gold project acquisition as announced to the ASX on 18 May 2021 and 19 October 2021. Under the Deed, $500,000 has been paid with the final $2 million payable by 31 December 2022 inclusive of a deferred payment fee of $100k.
Proceeds from the Facility will be used to settle the A$2.1 million deferred Cannon payment to Aurenne and to contribute to the upfront capital costs of the proposed Cannon underground mine.
The Cannon Feasibility Study was released on the ASX on 29 March 2022 and demonstrated positive economic results under a contract mining and toll milling model. The Company continues to advance the project with regulatory approvals and tender review the main focus and a development decision expected in the March Quarter 2023 once approvals are granted.
The Company plans to utilise the contract mining and toll milling model to advance a sequence of underground developments with Cannon, Penny's Find and Rose Hill under evaluation with the aim of generating cash to support the large-scale exploration program and future mine developments across the core assets in Kalgoorlie and Coolgardie.
Commenting on the Facility, Managing Director Jon Price said:
"It has been a pleasure to work with the team at Nebari who have worked rapidly to agree the transaction on highly competitive commercial terms enabling us to secure and advance the Cannon gold project into development and production in 2023."
"We also thank the team at Aurenne for agreeing to extend the deferred payment timing to fit in with completion of the convertible loan facility and shareholder approval."
About Horizon Minerals Limited
Horizon Minerals Limited (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.
Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.
Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.
Horizon Minerals Limited