Australia-based Horizon Minerals Ltd., formerly Intermin Resources Ltd., increased the proposed consideration to purchase the Coolgardie gold project in Western Australia from Focus Minerals Ltd. after the latter received a competing offer from a third party.
The company will now pay A$55 million in four tranches, comprised of A$43.0 million cash and A$12.0 million in shares, compared to the previous A$40 million purchase price.
Horizon entered a five-month exclusivity deed with Shandong Gold Mining Co. Ltd.'s 49.53%-owned Focus Minerals in February.
The project comprises the Three Mile Hill processing plant with a capacity of 1.2 million tonnes per annum and an estimated 2.1 million ounces of resources in gold deposits.
Focus Minerals said Sept. 6 there is no assurance that the sale of the Coolgardie project and the Three Mile Hill processing plant will proceed.
