Horizon nets $2m cash from divestments

Multi-element explorer Horizon Minerals has netted $2 million in cash by divesting assets as it continues its expansive exploration campaign in Western Australia.

The company shed its shareholdings in Red Dirt Metals and Cyprium Metals in addition to the non-escrowed portion of Metal Hawk.

The earnings pocketed from monetising its assets will be used to fund part of its ongoing large-scale multi-commodity exploration program.

Although earlier campaigns focused on infill drilling and resource extensions, the current run of rigs is aimed at discovery across four high-priority areas in the greater Kalgoorlie region.

The explorer has also proven itself nimble by generating about $1.35m in cash from recent toll milling campaigns, using stockpiled ore from its Boorara deposit.

According to the company, its current cash at the bank totals $3.5m.

Horizon currently holds about $7.36m in investments in other publicly-listed mining companies.

The company’s ASX portfolio comprises about $5.75m in Kingwest Resources, about $930,000 in Reward Minerals and a further $855,000 in Metal Hawk.

In March 2021, Horizon completed the divestment of its Menzies and Goongarrie gold projects to Kingwest for a total consideration of $8m – $3.375m in cash and the balance in Kingwest shares.

Horizon’s shares in Kingwest amount to just over a 15 per cent stake in the gold-focused company.

Interestingly, Horizon’s long-time holding in Reward has grown in value by nearly 54 per cent, from $605,461 on 30 June 2019 to $929,644 as of 30 March 2022.

During the final quarter of last year, Horizon shed the nickel rights on its tenements adjacent to Metal Hawk’s Blair North and Clinker Hill nickel sulphide projects east of Kalgoorlie. Metal Hawk subsequently moved to combine and rebrand its nickel ventures as the Berehaven project.

Metal Hawk initially acquired the option of nickel rights for 1.5m of its shares including a further 3m shares upon execution.

In addition to the share consideration, the terms of the deal included Metal Hawk meeting the statutory expenditure requirements of the tenements and most importantly, assaying all drill samples for gold and other elements.

As Metal Hawk hunts for nickel, Horizon will be due for a free lunch of gold assays.

Horizon has long held a strategy of offloading non-core assets to apparent frontrunners with the view of creating value for all parties.

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