Horizon Minerals signs agreement with Metal Hawk covering nickel rights on 12 tenements in Eastern Goldfields

Horizon Minerals Ltd (ASX:HRZ) has signed a binding term sheet with Metal Hawk Ltd, enabling the latter to acquire an option to purchase nickel rights on 12 granted tenements east of Kalgoorlie in Western Australia. The expanded project area, known as the Berehaven Nickel Project, covers more than 95 square kilometres of contiguous tenure situated north of the Blair Nickel Mine. Regional exploration by Metal Hawk has defined drill-ready nickel targets with a rig contracted to begin reverse circulation (RC) drilling at Berehaven this quarter. Adding scale to tenement package Metal Hawk managing director Will Belbin said: “It is great to add significant scale to this tenement package located only a few kilometres from the Blair Nickel deposit. “We look forward to ramping up nickel sulphide exploration on this project, which has been remarkably underexplored considering its location and prospectivity and are pleased to welcome Horizon Minerals as a shareholder in Metal Hawk.” Exploration potential Metal Hawk will focus initial exploration north of the Blair nickel sulphide deposit where north-northwest trending interpreted ultramafic rocks extend for up to 10 kilometres across the Berehaven Nickel Project. The company also intends to investigate potential extensions of nickel sulphide mineralisation along trend from the recently discovered Leo Dam nickel sulphide prospect (around 1 kilometre south of Metal Hawk’s tenure). It will be drill testing these priority target areas in coming months, with targeted MLTEM (moving loop transient electromagnetic) surveys to follow as it ramps up the search for massive nickel sulphide mineralisation. Key option terms The option period is 18 months commencing on the date of execution of a formal option, sale and purchase agreement (formal agreement); Metal Hawk and Horizon have each committed to use their best endeavours to execute the formal agreement within 45 days of the term sheet being signed; As consideration for granting the option, Metal Hawk will issue 1.5 million MHK shares to Horizon; Metal Hawk may exercise the option at any time within the option period by issuing an additional 3 million MHK shares to Horizon; All MHK shares issued to Horizon will be escrowed for 180 days from the issue date; The nickel rights give Metal Hawk the exclusive right, subject to obtaining the necessary statutory approvals, to explore for, mine, process and sell nickel and associated minerals extracted from the tenements; and If the company defines a nickel mineral resource on the tenements, it will have the right to apply for a mining lease, to be wholly owned by Metal Hawk, within the area of the tenements.