In a strategic move to sharpen its focus on gold, Perth-based Horizon Minerals has inked a binding deal to divest its non-core Lake Johnston nickel project. The buyer, emerging explorer Forrestania Resources, will acquire the Western Australian asset for a total consideration of $35 million.
Deal Structure and Strategic Shift
The sale agreement comprises a substantial $30 million cash payment and $5 million in Forrestania shares. A $2 million non-refundable deposit has already been settled, with the full deal expected to be finalised by the end of January 2025, pending Forrestania's successful capital raise.
Horizon originally acquired Lake Johnston through its merger with Poseidon Nickel, which was completed in February 2025. During its brief nine-month ownership, Horizon conducted limited exploration, primarily reviewing legacy nickel resources and doing early-stage targeting for gold, copper, and lithium.
No significant new nickel resources were added to the project's JORC-compliant endowment under Horizon's stewardship. The company's Managing Director and CEO, Grant Haywood, confirmed the project's non-core status, stating the focus is firmly on the refurbishment and restart of the Black Swan processing facility.
Fueling the Golden Ambition
The proceeds from this divestment are earmarked to accelerate Horizon's pivot towards becoming a standalone gold producer. A key priority is to fast-track the refurbishment of the company's 100%-owned Black Swan plant.
This includes purchasing long-lead items required to convert the plant for gold treatment. The company is targeting first gold production from Black Swan by the end of 2026. The influx of cash will also support potential merger and acquisition opportunities within the gold sector.
This sale follows Horizon's recent acquisition of the Gordons Dam gold project, located just 10km west-southwest of Black Swan. This acquisition bolsters the company's hub-and-spoke strategy in the prolific Kalgoorlie region.
Building a Gold-Focused Future
A pre-feasibility study for the Black Swan project remains on track for completion in the December quarter. The plant refurbishment study is being continuously enhanced by ongoing resource growth drilling.
This includes a major 30,000-metre drilling program at the high-grade Burbanks gold project, situated south of Coolgardie. The initial 15,000 metres of this program aim to increase resource confidence for potential inclusion in future mine plans.
This clean exit from its nickel exposure at an attractive valuation strengthens Horizon's balance sheet. It provides the capital needed to establish Black Swan as a central processing facility and advance its surrounding gold projects, all while retaining exposure to Lake Johnston's potential through its shareholding in Forrestania.
