What's Happening?
Yandal Resources has entered into a binding agreement with Horizon Minerals to sell its Gordons gold project located in Western Australia's Goldfields. The transaction, valued at $2.81 million, involves a $200,000 refundable deposit, $1 million in cash upon completion, and $1.61 million in Horizon shares, with an option for cash substitution. The project, situated 40km northwest of Kalgoorlie, includes 34 mining, prospecting, and exploration licenses over 77 square kilometers, featuring the Gordons Dam deposit. Horizon plans to integrate this acquisition into its regional consolidation strategy near its Black Swan processing facility, which is set for refurbishment. The deal is expected to conclude in the September quarter, pending regulatory and third-party approvals.
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Why It's Important?
This acquisition is significant for Horizon Minerals as it enhances their resource base near the Black Swan processing facility, aligning with their strategy to expand operations in the Goldfields region. The addition of the Gordons project offers potential for further resource growth and exploration opportunities, which could bolster Horizon's production capabilities. For Yandal Resources, the sale provides essential funds to support ongoing exploration activities, particularly at the Caladan target area. This transaction reflects broader trends in the mining industry where companies are consolidating assets to optimize production and exploration potential.
What's Next?
Horizon Minerals will focus on obtaining the necessary regulatory and third-party approvals to finalize the acquisition. Post-completion, Horizon is likely to prioritize the integration of the Gordons project into its existing operations and explore further resource development opportunities. Yandal Resources will utilize the proceeds from the sale to advance its exploration schedule, particularly at the Caladan target area, where promising mineralization trends have been identified.
