The Project is located approximately 45km northwest of Richmond in
In
RVT completed the initial earn in period in
As announced to the ASX on
Process Deed
Horizon and RVT have now entered into a Process Deed under which they have acknowledged that a restructuring of their interests in, and an IPO of, the Project represents their mutually preferred strategic approach to achieve their objectives for the Project (including procurement of funding for its advancement and achieving an appropriate management and governance structure).
Under the Process Deed, Horizon and RVT have agreed to progress a transaction currently anticipated to include:
- the restructuring of the ownership in the Project (which at present take the form of interests in an unincorporated joint venture) into an incorporated structure, with 100% of the interests in the Project to be held by the IPO Vehicle, whose shares will initially be held by Horizon (as to 25%) and the existing shareholders of RVT (as to 75%) in line with current Project ownership;
- establishment of a dedicated Board and focussed, experienced executive and management team;
- an in-specie distribution of a portion of Horizon's shares in the IPO Vehicle to Horizon shareholders; and
- an IPO of new shares in the IPO Vehicle and application to list on the ASX.
The above transaction structure is at this stage indicative only and is subject to review following further investigation (including further legal, tax and accounting analysis). Horizon and RVT have, under the Process Deed, agreed to progress such further investigation and to negotiate in good faith with a view to agreeing definitive transaction documents. The implementation of the transaction is subject to each party executing definitive transaction documents (and to the receipt of appropriate regulatory and shareholder approvals, amongst other conditions) and at this stage there can therefore be no guarantee that the transaction set out above (or any transaction) will proceed.
The Company will provide further updates as appropriate in accordance with its continuous disclosure obligations. The amount of funds required as part of the IPO will be determined in the
Strategic Rationale
The Richmond -
Vanadium has been declared a critical mineral by the
By demerging the Project into the IPO Vehicle with its own funding and dedicated Board and executive team, Horizon believes greater shareholder value can be achieved. The pathway will also allow Horizon to focus all of its resources on its advanced Western Australian gold assets and is consistent with the Company's strategy of realising value for shareholders from its non-core assets.
Next Steps
The joint venture partners will now work to finalise formal transaction documents for the Project restructure and commence the IPO process 1.
Further information and timing will be provided in the
In addition, work will continue advancing the DFS inclusive of detailed capital and operating cost review, environmental and statutory approvals, option analysis for optimal downstream processing locations, transport option analysis and further discussions with potential offtake partners.
For further information on the technical and economic aspects of the Lilyvale project from the Pre-Feasibility Study, please refer to the Company's ASX Announcement: "Richmond - Julia Creek Oxide Vanadium Project Advances to DFS on Strong Price Outlook" dated
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/0M7Y9696
About
Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.
Horizon has a number of joint ventures in place across multiple commodities and regions of
Contact:
Managing Director
T: +61 8 9386 9534
E: jon.price@horizonminerals.com.au
Media Relations -
T: +61 422 602 720
E: michael.vaughan@fivemark.com.au
Copyright (C) 2021 ABN Newswire. All rights reserved., source