Coolgardie sale poised to fail
PERTH (miningweekly.com) – The share price of both ASX-listed Focus Minerals and Horizon Minerals faltered on Friday on news that the A$55-million sale of the Coolgardie gold project, in Western Australia, was unlikely to proceed.
Horizon in February this year entered into an exclusivity agreement with Focus to acquire the Coolgardie project for A$40-million, however, this offer price was increased to A$55-million, comprising A$43-million in cash and a further A$12-million worth of shares in Horizon, after a competing bid emerged.
The exclusivity period will expire on December 17.
Focus on Friday told shareholders that the proposed transaction was unlikely to receive the necessary approvals before the expiry of the exclusivity period, with Horizon saying it was not contemplating a further extension of this period.
Focus told shareholders that it would consider its options for the noncore Coolgardie project, while its focus will remain on its Laverton gold project.
Horizon has, meanwhile, said that a staged mining and toll milling operation at its Boorara project was planned to start in 2020.
Horizon share prices fell by just over 1% on Friday, while Focus shares fell by nearly 6%.
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