PERTH (miningweekly.com) – Explorer Metal Hawk has struck an option agreement with fellow-listed Horizon Minerals over seven tenements within Horizon’s Yarmany nickel and lithium project area, in Western Australia.

The option relates to all mineral rights over the seven exploration licences, with Metal Hawk to pay a A$400 000 non-refundable option fee in both cash and shares. Metal Hawk will also incur at least A$1-million in exploration expenditure on the tenements prior to the exercise of the option, which has a 24-month term.

If the option is exercised, Horizon could sell its interests in the tenement for A$1-million, with this consideration to be settled in either cash or shares, or could sell 80% of its interest and forego the completion consideration, but retain a 20% free-carried interest to a decision to mine, at which a joint venture (JV) would be formed.

“The option and sale agreement is a positive outcome for both parties. It fits with Horizon’s strategy of focussing on gold assets we can bring into production and rationalising our large tenement holding where value can be realised by divesting noncore assets to capable groups who can take them forward. This transaction also strengthens our balance sheet and reduces our holding costs,” said Horizon CEO Grant Haywood.

“We have a strong relationship with Metal Hawk and, as a shareholder and potential JV partner, we wish them well in advancing this prospective early-stage project.”

Metal Hawk MD Will Belbin said on Wednesday that the company was pleased to have secured the option over the  Yamany project, which complemented Metal Hawk’s existing goldfields portfolio.

“The Yarmany project has seen very little nickel sulphide exploration activities since the 1970s and limited lithium exploration. With a favourable geological setting along the Ida Fault, this large and contiguous tenement package presents as a tremendous discovery opportunity for the company,” he said.

“Metal Hawk will be applying targeted exploration for nickel and lithium mineralisation and is aiming to fast-track plans for drilling in 2023.”