The Horizon Minerals Ltd (ASX: HRZ) share price is taking off today, currently up 5% to 10.5 cents after revving 10% higher in morning trade.
This comes after the gold miner announced the completion of a deal with fellow ASX gold share Orminex Ltd (ASX: ONX). The Orminex share price, up 14% in early morning trade, is currently down 7%.
What deal did Horizon report?
The Horizon share price is soaring after the company reported the completion of its acquisition of 50% interest in Orminex's Penny's Find gold project, located in Western Australia.
Horizon first announced its intended acquisition to the ASX on 30 November. This morning the company reported it had made the $1.5 million cash payment (funded from existing reserves) to Orminex. All other necessary conditions have also been met.
Horizon stated it would fund the first $1 million for pre-development operations. Thereafter costs will be split 50:50 with its joint venture (JV) partners.
Commenting on the acquisition, Horizon's managing director Jon Price said:
Penny's Find is a quality high-grade gold project with considerable work completed enabling an accelerated pathway to production with approvals and toll milling agreement in place for the first phase of development.
We look forward to working with the Orminex team and releasing the drilling results, updated resource model and mine optimisation and design work in coming months enabling a development decision in the September Quarter 2021.
Orminex non-executive director Dean Hely added:
Execution of the Joint Venture Agreement is a great step forward in fast-tracking the necessary technical works to enable commencement of development at Penny's Find, with Orminex committed to utilising the A$1,500,000 received for future funding of this high grade, prospective underground gold mine.
Reverse circulation (RC) and diamond drilling have been completed "to infill a number of areas for improved JORC Classification".
Horizon expects drilling assay results in the June quarter with an updated resource, maiden reserve and development decision forecast for the September quarter.
Horizon share price snapshot
The Horizon share price is up 120% over the past 12 months. That compares to a gain of 53% on the All Ordinaries Index (ASX: XAO).
Year-to-date, Horizon Minerals shares are down 8%.
