Perth-based Horizon Minerals has struck a binding heads of agreement to sell its 100 per cent-owned non-core Lake Johnston nickel project in Western Australia to emerging explorer Forrestania Resources for a total consideration of $35 million which includes a $30m cash component.
The deal, expected to settle by the end of January, remains subject to Forrestania securing the funding via a capital raise – although a $2m non-refundable deposit has already been paid - also includes Horizon receiving $5m in Forrestania shares.
Horizon acquired Lake Johnston through its merger with Poseidon Nickel, which was implemented in February 2025.
During its nine-month tenure of Lake Johnston, Horizon undertook limited exploration at the project, focusing primarily on legacy nickel resources inherited from Poseidon and early-stage targeting for gold, copper and lithium.
In May, Horizon issued an amended mineral resources statement which placed its total mineral resources at 1.8 million ounces of gold, 20.2 million ounces of silver, 104,000 tonnes of zinc, 422,000t of nickel and 7800t of cobalt.
No significant new nickel resources were defined under Horizon's ownership of Lake Johnston, with the project's existing JORC-compliant nickel endowment remaining unchanged since the merger.
Horizon Minerals managing director and CEO Grant Haywood said: “Lake Johnston was acquired through the ~$30 million merger with Poseidon 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 company noted then that its gold mineral resource numbers are underpinned by its extensive cornerstone Boorara and Burbanks assets and that the only significant change to the company’s mineral resources included the addition of the 422,000t of nickel from its acquired Poseidon nickel assets.
Horizon also said that its significant gold mineral resource base and ongoing studies would pave the way for its planned development profile aimed at sustained gold production and continuous cashflow.
Proceeds from the sale will accelerate Horizon's pivot to gold production and fast-track refurbishment of the company's 100 per cent-owned Black Swan processing plant, including acquisition of long-lead items for the plant’s conversion to gold treatment, with first gold production from Black Swan slated for the end of 2026.
The sale funds will also support any potential merger and acquisition opportunities in the gold space.
The divestment comes on the heels of Horizon's acquisition of the Gordons Dam gold project, which adds highly prospective tenure to Horizon’s portfolio 10km west-southwest of Black Swan, further bolstering the company's Kalgoorlie-region hub-and-spoke strategy.
A pre-feasibility study for Black Swan remains on track for the current December quarter. The plant refurbishment study is being enhanced by ongoing resource growth drilling across Horizon's portfolio, including a 30,000m program at the company’s high-grade Burbanks gold project, about 9km south of Coolgardie.
Burbanks hosts a current resource of 6.1 million tonnes at 2.4g/t gold for 466,000oz at 2.4g/t gold, with the initial 15,000m of drilling aimed at lifting confidence ahead of its potential inclusion in future mine plans.
The Lake Johnston divestment marks a clean exit from Horizon’s non-core nickel exposure at an attractive valuation. It allows Horizon to beef up its balance sheet, bring in cash to continue establishing Black Swan as a gold processing facility and advance its surrounding gold projects, while retaining significant upside to Lake Johnston through its Forrestania shareholding.
With Black Swan as its centrepiece, complemented by recent prospective additions including Gordons Dam and its ongoing drilling at Burbanks and other satellite deposits, the company is looking to position itself as WA’s next standalone mid-tier gold producer.
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By Doug Bright
