How Horizon’s $35M Lake Johnston Sale Fuels Black Swan’s Revival
Horizon Minerals has agreed to sell its Lake Johnston Project to Forrestania Resources for $35 million, aiming to refocus on advancing its Black Swan gold operations.
- 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 potential acquisitions
- Black Swan pre-feasibility study remains on track, supported by recent Gordons Dam acquisition
Strategic Divestment to Sharpen Focus
Horizon Minerals Limited has taken a decisive step to streamline its portfolio by signing a binding Heads of Agreement to divest its 100% interest in the Lake Johnston Project to Forrestania Resources Limited for a total consideration of A$35 million. This move underscores Horizon’s intent to concentrate resources and capital on its core asset, the Black Swan Project, which is poised for a significant restart and expansion.
The Lake Johnston Project, acquired through a previous merger valued at around $30 million, has been classified as non-core by Horizon’s management. The divestment deal includes a combination of upfront and completion-stage cash payments totaling $30 million, supplemented by $5 million worth of fully paid ordinary shares in Forrestania, allowing Horizon to retain some exposure to Lake Johnston’s future potential.
Funding Black Swan’s Next Phase
Proceeds from the sale are earmarked to accelerate the refurbishment of the Black Swan processing plant, a critical infrastructure component for Horizon’s gold production ambitions. The company also plans to use the funds to support early procurement of long lead items and to explore potential mergers and acquisitions that could complement its existing portfolio.
Horizon’s Managing Director and CEO, Grant Haywood, highlighted the strategic rationale, emphasizing the importance of strengthening the balance sheet and focusing on assets with the highest value creation potential. The Black Swan Project’s pre-feasibility study remains on schedule for completion in the December quarter, bolstered by the recent acquisition of the Gordons Dam Project, which adds promising tenure adjacent to Black Swan.
Ongoing Exploration and Growth Prospects
Complementing these developments, Horizon is actively advancing a substantial 30,000-metre drilling program at its 100% owned Burbanks project. The initial phase focuses on infill drilling to enhance resource confidence, followed by extensional drilling aimed at expanding the resource base. Plans are also underway to accelerate further drilling activities across its broader land package in the coming year, signaling Horizon’s commitment to organic growth alongside strategic asset management.
Conditions and Next Steps
The transaction’s completion hinges on several conditions, including Forrestania successfully raising capital to fund the acquisition, obtaining necessary regulatory approvals, and executing all required legal agreements. The parties anticipate closing the deal by the end of January 2026, subject to these milestones.
While the divestment marks a clear pivot for Horizon, it also preserves upside potential through its shareholding in Forrestania, maintaining a stake in Lake Johnston’s future development. Investors will be watching closely how Forrestania’s capital raising unfolds and how Horizon leverages the divestment proceeds to advance Black Swan’s promising pipeline.
Bottom Line?
Horizon’s $35 million divestment sharpens its focus on Black Swan, setting the stage for a pivotal growth phase.
Questions in the middle?
- Will Forrestania successfully complete its capital raising to finalize the Lake Johnston acquisition?
- How will the infusion of funds accelerate Black Swan’s processing plant refurbishment timeline?
- What potential mergers or acquisitions might Horizon pursue with the divestment proceeds?
