Horizon to sell Lake Johnston project to Forrestania Resources

Core Viewpoint - Horizon Minerals has entered into a binding heads of agreement to sell its Lake Johnston project to Forrestania Resources for a total consideration of A$22.93 million, structured as A$30 million in cash and A$5 million in shares [1][3]. Group 1: Transaction Details - The transaction includes a non-refundable A$2 million cash payment upon execution of the heads of agreement, followed by A$14 million in cash upon the execution of the full agreement [3][4]. - An additional A$14 million in cash will be paid upon completion, along with the issuance of A$5 million in fully paid ordinary shares in Forrestania [4]. - Completion of the transaction is subject to various conditions, including regulatory approvals and third-party consents [4]. Group 2: Strategic Implications - The divestment is aimed at strengthening Horizon's balance sheet and providing cash to advance the Black Swan processing facility and surrounding gold projects [3][5]. - Horizon plans to use the proceeds from the sale to fund long-lead items for the refurbishment of the Black Swan processing plant and explore potential mergers and acquisitions [5]. - The pre-feasibility study for the Black Swan processing facility is progressing on schedule, supported by the recent acquisition of the Gordons Dam Project [5]. Group 3: Timeline and Future Steps - Both parties aim to finalize and execute a full asset sale and purchase agreement within 30 days of the heads of agreement, with an option to extend if necessary [6]. - The transaction is expected to be completed by the end of January 2026 [6].