Horizon relinquishes Menzies, Goongarrie projects

REZ

Horizon Minerals has received the last of the $8 million and shares in Kingwest Resources for the sale of the Menzies and Goongarrie gold projects in Western Australia.

The divestment was initially announced in July 2019, with the most recent instalments totalling $1.625 million and 10.83 million shares in Kingwest.

Since the initial acquisition, Kingwest has been pleased with the developments at both projects, this month reporting a net cashflow of between $64 million and $95 million.

Kingwest chief executive officer Ed Turner said he expected the acquisitions to contribute handsomely to the company’s bottom line.

“The board and management of Kingwest are very proud of the progress that has been made since first acquiring the Menzies and Goongarrie gold projects 18 months ago,” Turner said.

“The company appreciates the support received from Horizon as its major shareholder during this time and looks forward to continue to realise value from both the advanced Menzies project and greenfields exploration programs at Goongarrie.”

In December 2019, Kingwest drilling confirmed very high gold grades, including a 2.48 metre intercept at 23.22 grams per tonne of gold from 121.52 metres.

At the time, Turner said the future was promising for Kingwest.

“This places our company on an exciting platform going forward,” Turner said. “Our team is very excited at the prospect of targeting possible extensions to the known high-grade shoots early in the new year.”

Over the course of the acquisition, Horizon gained over 30 million shares in Kingwest, giving them an 18.7 per cent stake in the business.

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