Horizon Minerals Limited: Intention To Demerge and List The Richmond Vanadium Project

Perth, Australia - Horizon Minerals Ltd. (ASX:HRZ) is pleased to announce the execution of a Process Deed with joint venture partner RVT to progress the ownership restructure, IPO and ASX listing of the Richmond-Julia Creek Vanadium Project (the "Project"). This follows a strategic review undertaken by each party in respect of the Project.

The Project is located approximately 45km northwest of Richmond in Northwest Queensland (Figure 1). Richmond is a regional service town situated 500km by road to the west of Townsville and 400km east of the mining town of Mt Isa.

In December 2016, the Company entered a strategic development Joint Venture ("JV") with RVT covering Horizon's 100% interest in the Project (Figure 2) .

RVT completed the initial earn in period in March 2018 and recently completed the second stage expenditure commitment over three years inclusive of a Feasibility Study to earn a further 50% interest in the project, with Horizon retaining a 25% interest.

As announced to the ASX on 17 August 2021, RVT completed the Pre-Feasibility Study on the advanced Lilyvale deposit with strong economic results. The Study included extensive metallurgical test work and a complete processing flowsheet design. The JV agreed to advance the Project to DFS with targeted completion in 2022.

Process Deed

Horizon and RVT have now entered into a Process Deed under which they have acknowledged that a restructuring of their interests in, and an IPO of, the Project represents their mutually preferred strategic approach to achieve their objectives for the Project (including procurement of funding for its advancement and achieving an appropriate management and governance structure).

Under the Process Deed, Horizon and RVT have agreed to progress a transaction currently anticipated to include:

- the restructuring of the ownership in the Project (which at present take the form of interests in an unincorporated joint venture) into an incorporated structure, with 100% of the interests in the Project to be held by the IPO Vehicle, whose shares will initially be held by Horizon (as to 25%) and the existing shareholders of RVT (as to 75%) in line with current Project ownership;

- establishment of a dedicated Board and focussed, experienced executive and management team;

- an in-specie distribution of a portion of Horizon's shares in the IPO Vehicle to Horizon shareholders; and

- an IPO of new shares in the IPO Vehicle and application to list on the ASX.

The above transaction structure is at this stage indicative only and is subject to review following further investigation (including further legal, tax and accounting analysis). Horizon and RVT have, under the Process Deed, agreed to progress such further investigation and to negotiate in good faith with a view to agreeing definitive transaction documents. The implementation of the transaction is subject to each party executing definitive transaction documents (and to the receipt of appropriate regulatory and shareholder approvals, amongst other conditions) and at this stage there can therefore be no guarantee that the transaction set out above (or any transaction) will proceed.

The Company will provide further updates as appropriate in accordance with its continuous disclosure obligations. The amount of funds required as part of the IPO will be determined in the March Quarter 2022. The record date for the in specie distribution for eligible shareholders is yet to be determined and will be advised in the March Quarter 2022.

Strategic Rationale

The Richmond - Julie Creek Project has many favourable attributes supporting a future development including shallow, continuous mineralisation, a long mine life, modest upfront capital costs and attractive forecast financial returns. The Project is located in a mature mining region with established infrastructure including a sealed highway, railway network and port.

Vanadium has been declared a critical mineral by the Australian Government and United States Department of Interior and has a positive demand outlook. A key driver of the expected future demand for vanadium is from use in vanadium redox flow batteries which have many advantages over alternative storage methods when it comes to applications for stationary, grid-scale storage in grid or off-grid settings. This supports the use of vanadium redox flow batteries in storing electricity produced by renewable sources.

By demerging the Project into the IPO Vehicle with its own funding and dedicated Board and executive team, Horizon believes greater shareholder value can be achieved. The pathway will also allow Horizon to focus all of its resources on its advanced Western Australian gold assets and is consistent with the Company's strategy of realising value for shareholders from its non-core assets.

Next Steps

The joint venture partners will now work to finalise formal transaction documents for the Project restructure and commence the IPO process 1.

Further information and timing will be provided in the March Quarter 2022.

In addition, work will continue advancing the DFS inclusive of detailed capital and operating cost review, environmental and statutory approvals, option analysis for optimal downstream processing locations, transport option analysis and further discussions with potential offtake partners.

For further information on the technical and economic aspects of the Lilyvale project from the Pre-Feasibility Study, please refer to the Company's ASX Announcement: "Richmond - Julia Creek Oxide Vanadium Project Advances to DFS on Strong Price Outlook" dated 17 August 2021 on the Company's website.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/0M7Y9696

About Horizon Minerals Limited:

Horizon Minerals Ltd. (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.

Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.

Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.

Source:
Horizon Minerals Ltd.

Contact:

Jon Price Managing Director T: +61 8 9386 9534 E: jon.price@horizonminerals.com.au Michael Vaughan Media Relations - Fivemark Partners T: +61 422 602 720 E: michael.vaughan@fivemark.com.au