Horizon Minerals Ltd. has agreed to sell its Lake Johnston project to Forrestania Resources Ltd. for AU$35 million.
Under the agreement, the AU$35 million consideration comprises of AU$2 million cash consideration paid on executive of the agreement. AU$14 million upfront cash consideration and AU$14 million cash on completion. Forrestania will also issue fully-paid ordinary shares issued on completion for an aggregate value of AU$5 million.
Horizon Minerals acquired Lake Johnston through its merger with Poseiden and is considered a non-core asset. The company is focused on the refurbishment and restart of the Black Swan processing facility, which will be fed with Horizon’s 100 per cent owned gold resources.
“The divestment allows Horizon to strengthen its balance sheet and bring in cash to continue to advance the Black Swan processing facility and surrounding gold projects. We are pleased to retain upside to the Lake Johnston project as a shareholder of Forrestania,” commented Horizon CEO Grant Haywood.
The transaction is subject to several conditions, including Forrestania completing a capital raising to fund the acquisition. The transaction is expected to be completed before the end of January 2026.
Horizon Minerals also provided an update on its Black Swan project. The pre-feasibility study for Black Swan remains on track for the current December quarter, and the company continues to explore growing existing mineral resources to further enhance the attractiveness of the project.
The company is currently undertaking a 30,000-metre drilling program at its 100 per cent owned Burbanks project, with the first 15,000 metres being infill drilling to improve resource confidence and a further 15,000 metres of extensional drilling aiming to grow the resource.
In 2026, Horizon Minerals aims to accelerate drilling programs across its land package.
