The pegmatites were discovered at Yarmany and are now subject to...

The pegmatites were discovered at Yarmany and are now subject to the following deal with Metal Hawk:

Horizon Minerals Limited (ASX: HRZ) (“Horizon” or “the Company”) is pleased to advise that it has entered into a binding option and sale deed (“Option”) with Metal Hawk Limited (ASX: MHK) (“Metal Hawk” or “MHK”) to purchase an interest in seven tenements within the Company’s Yarmany project area (“Tenements”).The Option relates to all mineral rights over seven Exploration Licences covering an area of 98 blocks approximately 40 kilometres west of Kalgoorlie. The Option provides for the following:• MHK paying Horizon a $400,000 non-refundable option fee within five days of signing the Option, comprising $200,000 in cash and $200,000 in MHK shares, with the number of shares determined by the 20-Day VWAP prior to execution• MHK must incur at least $1.0m of on ground exploration expenditure on the Tenements prior to exercising the Option, which has a term of 24 months• MHK may withdraw from the Option with 30 days notice, or allow the Option to lapse, after incurring a minimum of $500,000 of exploration expenditure, with all tenure remaining 100% owned by Horizon in those circumstances• If MHK exercises the Option, then at Horizon’s election, Horizon may:• Sell 100% of its interests in the Tenements to MHK for $1.0m completion consideration, with this consideration to be settled in either cash, shares or any combination of both at MHK’s election; or• Sell 80% of its interests in the tenements to MHK and forego the completion consideration, but retain a 20% interest free carried to a decision to mine at which time a Joint Venture (JV) will be formed with MHK• MHK shall have a licence to explore for minerals on the Tenements during the Option period and must meet annual expenditure commitments and keep the Tenements in good standing• All MHK Option fee shares, and completion consideration shares issued, shall be subject to voluntary escrow of six monthsCommenting on the Option, Horizon Chief Executive Officer Mr Grant Haywood said:“The option and sale agreement is a positive outcome for both parties. It fits with Horizon’s strategy of focussing on gold assets we can bring into production and rationalising our large tenement holding where value can be realised by divesting non-core assets to capable groups who can take them forward. This transaction also strengthens our balance sheet and reduces our holding costs.”“We have a strong relationship with Metal Hawk and, as a shareholder and potential JV partner, we wish them well in advancing this prospective early stage project.”horizonminerals.com.