Horizon Minerals Ltd (ASX:HRZ) has reached agreement for Cyprium Metals Ltd (ASX:CYM) to purchase the Nanadie Well Copper Project near Meekatharra in WA's Murchison district for $1.5 million in cash and shares.
The company took 100% control of Nanadie Well in the December quarter of 2019 following the withdrawal of its then joint venture partner.
This non-core divestment comprises Exploration Licence E51/1040 and Mining Licence M51/887 covering 45 square kilometres.
Gold is core focus
Managing director Jon Price said: “Horizon’s core focus remains firmly set on developing a standalone gold project in the Kalgoorlie and Coolgardie regions and this divestment supports this objective while retaining exposure to both Nanadie Well and Cyprium’s current copper projects in the Murchison as a substantial shareholder.”
“Cyprium has an excellent technical team which is actively exploring in the region and we look forward to further success at Nanadie Well as we continue growing our gold business.”
Completion is expected in the next four weeks and subject to standard conditions for a transaction of this nature, including ministerial consent, any third party assignments and provision of mining information.
Terms and conditions
Under the agreement, Cyprium will pay $1.5 million in cash and shares (priced on a 20-day VWAP basis) on the following terms:
- $250,000 in cash and $400,000 in Cyprium shares on completion;
- $350,000 in Cyprium shares 12 months from completion;
- $300,000 in Cyprium shares 24 months from completion; and
- $200,000 in Cyprium shares on a decision to mine from the tenure.