Update on Horizon Minerals Limited’s Richmond Vanadium Project IPO


Perth, Australia (ABN Newswire) – Horizon Minerals Limited (ASX: HRZ) is pleased to provide an update on the spin-off of Horizon’s 25% interest in the Richmond Vanadium Project (“Project”) and the proposed listing on the Australian Stock Exchange (“ASX”) of 100% of the Project.

The 1.8Bt project is located in North Central Queensland and has a completed pre-feasibility study which has demonstrated a technically viable and financially attractive development project. Work towards a bankable feasibility study is currently progressing.

As announced on the ASX on November 24, 2021, Horizon has signed a pleading with joint venture partner Richmond Vanadium Technology Pty Ltd (“RVT”) pursuant to which the two companies have agreed to work together to advance a transaction that will should include:

– The restructuring of the respective stakes in the ownership of the project into a dedicated incorporated vehicle holding 100% of the project (“IPO Vehicle”) with shares initially held by Horizon (25%) and the existing shareholders of RVT (75%);

– Establishment of a high quality board and management team for the IPO vehicle;

– An in-kind 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 for listing on the ASX with priority entitlement to existing Horizon shareholders.

RVT and Horizon have agreed that RVT will be the dedicated IPO vehicle. A Sale and Purchase Agreement (“SPA”) has now been signed by both parties and the shareholders agreement which will become effective upon completion will govern the operation of RVT until the introduction into planned stock market is executed.

Upon completion, RVT will own 100% of the project, with RVT shares held by Horizon (25%) and existing RVT shareholders (75%).

Completion of the sale is expected to occur in the current June quarter, subject to Horizon completing satisfactory confirmatory due diligence on RVT, and receipt of required regulatory approvals for the transfer of the interest of Horizon in the project to IPO vehicle.

Upon completion, the new RVT Board of Directors will include (full bios on page 3* in the link below):

– Mr. Brendon Grylls, former MP for Western Australia, Chief Cabinet Minister for Western Australia and Corporate Strategist, as Independent Non-Executive Chairman;

– Current RVT CEO and critical minerals specialist, Dr. Shaun Ren, as Managing Director; and

– Metallurgist, Mining Economist and Managing Director of Horizon, Mr. Jon Price as Non-Executive Director.

Horizon understands that RVT, as an IPO vehicle, has engaged Bell Potter Securities Ltd and Euroz Hartleys Ltd as co-leads for the IPO. Completion of the sale will allow RVT to advance the proposed IPO process.

Commenting on the progress of RVT’s IPO, Horizon Chief Executive Jon Price said:

“The Horizon team and our JV partners have done an excellent job advancing the internal restructuring so that we can now move forward with the IPO and ASX listing process for this world-class project. .”

“This comes at a time when the critical minerals sector is clearly in the global framework, providing Horizon shareholders with excellent exposure to the emerging green energy revolution through a free-in-kind distribution of RVT shares and a priority offer during the initial public offering.”

Transaction details and next steps

Following consultations between Horizon and the ASX, the ASX advised that, based solely on the information provided to it, ASX Listing Rules 11.4, 11.1.2 and 11.1.3 do not not apply to the proposed sale of Horizon’s interest in the IPO project. Vehicle.

In consideration for the sale of Horizon’s interest in the project, Horizon will receive new common shares of RVT constituting 25% of the share capital of RVT after issuance. Accordingly, the divestiture is not expected to have a material impact on Horizon’s business or financial reporting.

The Company will provide further updates, as appropriate, in accordance with its continuous disclosure obligations, including the amount of funds to be raised in connection with the proposed IPO, the use of funds and the date record of the in-kind distribution for eligible Horizon shareholders. An indicative timeline including completion of the SPA, proposed IPO, cash distribution and priority offering is provided in the link* below.

*To consult the timetables, go to:
https://abnnewswire.net/lnk/9FIQO82F

About Horizon Minerals Limited:

Horizon Minerals Limited (ASX:HRZ) is a gold exploration and mining company focused on the Kalgoorlie and Menzies regions of Western Australia, home to some of Australia’s richest gold deposits. The Company develops a portfolio of mining projects to generate cash and self-finance aggressive exploration, mining developments and other acquisitions. The Teal gold mine was recently completed.

Horizon aims to significantly increase its JORC-compliant mineral resources, complete definitive feasibility studies on high-grade open pit and underground base projects, and construct a sustainable development pipeline.

Horizon has established a number of joint ventures across multiple commodities and regions in Australia, providing exposure to vanadium, copper, PGEs, gold and nickel/cobalt. Our quality joint venture partners are winning in our project areas by spending over $20 million over 5 years, allowing focus on the gold business while maintaining upside leverage.

Source:
Horizon Minerals Limited

Contact:

Jon Price 
Managing Director
T: +61 8 9386 9534 
E: jon.price@horizonminerals.com.au 

Michael Vaughan 
Media Relations - Fivemark Partners 
T: +61 422 602 720 
E: michael.vaughan@fivemark.com.au
 
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