DJ Horizonte Minerals Disposes of Interest in Falcao Project
Nov 06, 2012 (Dow Jones Commodities News via Comtex) --LONDON--Horizonte Minerals PLC (HZM.LN), an exploration and development company focused on Brazil, said Tuesday that it has entered into a share purchase agreement with Guyana Frontier Mining Corp for the sale of HM Brazil Ltd, which holds Horizonte's interest in the Falcao gold project in northern Brazil, to Guyana Frontier, currently under option to AngloGold Ashanti Ltd.
- This transaction is in line with Horizonte's corporate strategy of divesting and monetizing its gold assets to focus on the development of the advanced Araguaia nickel project in northern Brazil
-On completion of the transaction, Horizonte will be a significant shareholder of Guyana Frontier providing exposure to Falcao and Guyana Frontier's gold project portfolio
-Under the terms of the transaction, two Horizonte representatives will join Guyana Frontier's board of directors
-As consideration for the Sale, Guyana Frontier will issue to Horizonte at closing an aggregate of 84 million common shares in the capital of Guyana Frontier at a deemed price of C0.05 per share.
-Horizonte has also purchased an aggregate of 8 million units of Guyana Frontier at a price of C0.05 per unit for an aggregate purchase price of C400,000 by way of private placement.
-Shares unchanged at 10 pence valuing the company at GBP37 million.
-Write to Rory Gallivan at firstname.lastname@example.org; Twitter: @RoryGallivan
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
Copyright (c) 2012 Dow Jones & Company, Inc.