How Horizon Minerals’ $35M Lake Johnston Sale Fuels Black Swan Ambitions
Horizon Minerals has agreed to sell its Lake Johnston Project for $35 million to Forrestania Resources, aiming to bolster funding for its flagship Black Swan gold project. The deal combines cash and shares, positioning Horizon for growth and operational advancement.
- Binding agreement to divest Lake Johnston Project for $35 million
- Consideration includes $30 million cash and $5 million in Forrestania shares
- Transaction contingent on Forrestania’s capital raising and regulatory approvals
- Proceeds earmarked for Black Swan processing plant refurbishment and M&A
- Black Swan pre-feasibility study on track, supported by Gordons Dam acquisition
Strategic Divestment to Focus on Core Assets
Horizon Minerals Limited has taken a decisive step to sharpen its strategic focus by entering into a binding Heads of Agreement to divest its 100% interest in the Lake Johnston Project. The $35 million deal with Forrestania Resources Limited is structured to provide Horizon with a combination of cash and equity, reflecting confidence in the future potential of the Lake Johnston asset while freeing capital for Horizon’s core operations.
Lake Johnston, acquired through a previous merger valued at around $30 million, has been classified as a non-core asset by Horizon. The divestment aligns with the company’s renewed emphasis on advancing the Black Swan Project, a gold processing facility that Horizon wholly owns and is actively developing.
Deal Structure and Conditions
The transaction’s $35 million consideration breaks down into $30 million in cash payments staggered across execution and completion milestones, alongside $5 million worth of fully paid Forrestania shares issued upon completion. This share component allows Horizon to retain exposure to Lake Johnston’s upside potential through its stake in Forrestania.
Completion of the sale is subject to several conditions, including Forrestania successfully raising capital to fund the acquisition and obtaining necessary regulatory and third-party approvals. The parties aim to finalize the full asset sale agreement within 30 days of the Heads of Agreement, targeting completion by the end of January 2026.
Fueling Growth at Black Swan
Proceeds from the divestment will be strategically deployed to accelerate the refurbishment and restart of the Black Swan processing plant. Horizon’s Managing Director, Grant Haywood, emphasized that the sale strengthens the company’s balance sheet and provides essential funding to advance Black Swan’s pre-feasibility study, which remains on track for completion this quarter.
Complementing this momentum is Horizon’s recent acquisition of the Gordons Dam Project, which enhances the Black Swan project’s resource base. Additionally, an extensive 30,000-meter drilling program at the Burbanks project is underway, aimed at both infill and extensional drilling to increase resource confidence and size.
Looking Ahead
Horizon’s divestment of Lake Johnston marks a clear pivot towards consolidating its gold assets and optimizing capital allocation. While the transaction introduces some execution risk tied to Forrestania’s capital raising and regulatory approvals, it positions Horizon to capitalize on near-term growth opportunities at Black Swan and beyond.
Investors will be watching closely as Horizon advances its drilling programs and progresses the Black Swan pre-feasibility study, with the potential for further M&A activity to expand its footprint in the gold mining sector.
Bottom Line?
Horizon’s Lake Johnston sale unlocks vital capital, setting the stage for Black Swan’s next growth phase.
Questions in the middle?
- Will Forrestania successfully complete its capital raising to finalize the acquisition?
- How will Horizon’s drilling results at Burbanks impact the Black Swan project’s valuation?
- Could Horizon pursue additional acquisitions to complement Black Swan’s development?
