Horizon Minerals has completed an $8 million sale of its Menzies and Goongarrie gold projects in Western Australia to Kingwest Resources.
It completes a deal that was announced in July this year, giving Kingwest access to the Menzies and Goongarrie sites, which comprise 38 mining, prospecting and exploration licences with a JORC 2012-compliant resource of 195,000 ounces of gold.
The finalisation of the agreement follows a recent announcement by Horizon that it will engage in a tenement exchange with Northern Star Resources in the Western Australian Goldfields.
It saw Horizon acquire a 100 per cent interest in the Rosehill, Brilliant North and Gunga West projects in Coolgardie and the Golden Ridge, Balagundi, Abattoir and Mt Monger projects in Kalgoorlie.
Kingwest owns one of the largest tenement packages in the Eastern Goldfields with more than 760 square kilometres and has hopes to expand this to 935 square kilometres.
The deal comprises of an initial deposit of $750,000 and a further $1 million on settlement. It also includes issuing of 20 million shares Kingwest to Horizon at a price of 15 cents per share.
A deferred payment of $1.6 million in cash and a further $1.6 million worth of shares in Kingwest will be paid no later than 18 months after settlement.