- Orminex (ONX) has agreed to sell 50 per cent of the Penny's Find gold mine in WA to Horizon Minerals' (HRZ) subsidiary, Black Mountain, for $1.5 million
- The sale of the project aims to fast track exploration at Penny's Find
- Both parties expect the purchase to wrap up come year-end
- All further funding of the project will be paid on a 50:50 basis
- On market close, Orminex is down 3.70 per cent and trading at 2.6 cents per share
Orminex (ONX) has agreed to sell 50 per cent of the Penny's Find gold mine to Black Mountain Gold — Horizon Minerals' (HRZ) subsidiary — for $1.5 million.
Orminex purchased Penny's Find in 2019 from Empire Resources (ERL) and since then has been busy securing mining approvals.
To fast track further development at Penny's Find, the company has entered a binding joint venture term sheet with Black Mountain.
To buy its stake in the project, Black Mountain has agreed to pay $1.5 million in cash, while all further approved expenditure will be funded on a 50:50 basis.
Penny’s Find is a high-grade underground mining and toll treatment opportunity located 50 kilometres northeast of Kalgoorlie in Western Australia.
Settlement of the purchase, which includes all necessary approvals obtained, is expected by year-end.
Last year, 3578 tonnes of residual ore from Penny's Find has already produced 251 recovered gold ounces with an average grade of 2.75g/t.
"The board of Orminex looks forward to working with the highly experienced technical and management team at Horizon to jointly fast track the remaining resource definition and technical works with the aim of commencing site works for project development in the first half 2021," the company told the market.
On market close, Orminex is down 3.7 per cent and trading at 2.6 cents per share.