Horizon and Metal Hawk have signed an interesting nickel rights option agreement on 12 tenements adjacent to Horizon’s Cannon gold project area approximately 20km east of Kalgoorlie. The agreement sees Horizon pick up an initial 1.5m shares in Metal Hawk with the option of another 3m more shares within 18 months and Metal Hawk taking up an option over the potentially lucrative nickel rights.
12 prospecting and exploration tenement licenses are associated with the option agreement covering approximately 61 square kilometres in the Eastern Goldfields.
On the face of it, the option agreement appears to be a win-win scenario for both companies with Horizon receiving 1.5 million Metal Hawk shares regardless of whether Metal Hawk chooses to exercise the nickel rights option or not.
Metal Hawk also benefits from the deal as it gains untethered access to conduct exploration activities on prospective and sought-after tenure adjacent to and along strike of its recent high grade Commodore nickel sulphide discovery at the Berehaven Nickel project.
Recent results from the Commodore prospect include 1 metre grading at a bonanza 5.9 per cent nickel and a 22m hit going 0.27 per cent nickel from 92m downhole.
Under the terms of the deal, the gold rights of the tenement package remain in Horizon’s control even if Metal Hawk decides to acquire the nickel rights, meaning Horizon will surrender no gold exploration real estate in either scenario.
The license granted for nickel exploration requires Metal Hawk to meet annual expenditure commitments in addition to assaying all drill samples for gold. The incentive of a suite of cost-free gold assays for Horizon and the freedom from the obligatory drilling and annual expenditure commitments appears to be a clever inclusion in the deal providing further incentive for Horizon to offer up the potentially lucrative nickel rights.
Managing Director Jon Price said: “Horizon’s core focus remains firmly set on developing a stand-alone gold project in the Kalgoorlie and Coolgardie regions and the grant of the nickel rights option to Metal Hawk supports this objective while unlocking value and allowing Horizon to retain exposure to both the Berehaven nickel project and Metal Hawk’s current projects as a Metal Hawk shareholder.”
“The strong technical team at Metal Hawk have done an excellent job with the new Berehaven nickel sulphide discovery and we look forward to further success as we continue growing our gold business.”
The option agreement between the two companys, will see Metal Hawk lording over the highly prospective nickel potential along strike from its own recent discovery at Commodore whilst Horizon retains the gold rights and a stake in the fortures of Metal Hawk’s Berehaven Nickel project as shareholder. Horizon also benefits from significantly reduced exploration costs.
The deal seems to be one of the those rare “win / win” scenarios often conceived but rarely achieved.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
