Quantcast
Last updated on April 18, 2014 at 21:21 EDT

Heads of Terms Signed with Magellan Minerals over Horizonte’s Agua Azul Gold Project in Northern Brazil

May 23, 2012

TORONTO, May 23, 2012 /PRNewswire/ – Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) (‘Horizonte’ or ‘the
Company’)
the exploration and development company focused in Brazil, announces the signing of Heads of Terms between Magellan Minerals Ltd
(‘Magellan Minerals’), a Canadian gold exploration company (TSX-V:
MNM), and the Company’s wholly owned subsidiary HM do Brasil Ltda
(‘HM’). The Heads of Terms, which remain subject to definitive binding
documentation, provide Magellan Minerals with an option to earn up to a
70% interest in the Company’s 1,553 ha Agua Azul do Norte gold property
(‘Agua Azul’ or ‘the Property’), located in the Carajas mining region,
northern Brazil.

Overview

        --  Magellan has the option to earn an initial 51% interest in the
            Agua Azul project for a total cash consideration of US$320,000
            staggered over a 36 month period, together with a minimum
            exploration expenditure
        --  Minimum exploration expenditure is US$1,500,000 over the 36
            month period including a minimum of 2,000m drilling

Horizonte CEO, Jeremy Martin said “This latest JV with Magellan is part
of our strategy of monetising our gold assets and maximising additional
value uplift from our gold portfolio for shareholders at no cost to
Horizonte.  We have a strong cash position of £4.8 million and have the
continued support of two major mining companies Teck Resources, a major
shareholder in the Company, and AngloGold Ashanti as a JV partner on
the Falcao gold project.

“Our current focus is the delivery of the Preliminary Economic
Assessment on our flagship Araguaia Nickel Project by the end of Q2
2012, and all work streams are on target to achieve this milestone. 
Later in the year we plan to start the pilot plant trials as we move
into the Pre-Feasibility stage.”

Further information

Upon earning a 51% interest, Magellan has the option to increase its
ownership in Agua Azul to 70% upon completion of a National Instrument
43-101 compliant Pre-Feasibility Study together with a further cash
payment of US$500,000 to Horizonte.

If Magellan has earned to 70% of Agua Azul, both companies will
contribute to ongoing development costs as per their respective
interests.  If HM’s interest drops below 10% its interest will be
converted to a 1% net smelter royalty on future production from any
resources discovered within the Property area.

Magellan Minerals will fund all exploration and will manage day to day
operations on the Agua Azul Project.

About Horizonte Minerals:

Horizonte Minerals plc is a leading exploration and development company
in Brazil with two committed major mining partners – Teck Resources and
AngloGold.  The Company’s wholly owned flagship nickel project,
Araguaia, is located south of the world-class Carajas Mineral district
in northern Brazil.  The Company has released an updated 43-101 Mineral
Resource Estimate of 39.3 million tonnes grading 1.39% nickel in the
Indicated category and 60.9 million tonnes averaging 1.22% Ni in the
Inferred category, which places the project in  the upper quartile of
developing global nickel assets in terms of size and grade.

During the past year Horizonte has delivered on key milestones within
budget and on schedule.  2012 will be active in terms milestone
delivery adding value to the Company as it continues to develop
Araguaia towards production.

The Company is also active with gold exploration in northern Brazil
which it is successfully developing with its JV partner AngloGold
Ashanti Limited, giving Horizonte a second commodity focus and adding
further value to the Company with minimum capital risk exposure.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Except for statements of historical fact relating to the Company,
certain information contained in this press release constitutes
“forward-looking information” under Canadian securities legislation.
Forward-looking information includes, but is not limited to, statements
with respect to the potential of the Company’s current or future
property mineral projects; the success of exploration and mining
activities; cost and timing of future exploration, production and
development; the estimation of mineral resources and reserves and the
ability of the Company to achieve its goals in respect of growing its
mineral resources; and the realization of mineral resource and reserve
estimates. Generally, forward-looking information can be identified by
the use of forward-looking terminology such as “plans”, “expects” or
“does not expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”, or
“believes”, or variations of such words and phrases or statements that
certain actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur” or “be achieved”. Forward-looking information
is based on the reasonable assumptions, estimates, analysis and
opinions of management made in light of its experience and its
perception of trends, current conditions and expected developments, as
well as other factors that management believes to be relevant and
reasonable in the circumstances at the date that such statements are
made, and are inherently subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to risks related
to: exploration and mining risks, competition from competitors with
greater capital; the Company’s lack of experience with respect to
development-stage mining operations; fluctuations in metal prices;
uninsured risks; environmental and other regulatory requirements;
exploration, mining and other licences; the Company’s future payment
obligations; potential disputes with respect to the Company’s title to,
and the area of, its mining concessions; the Company’s dependence on
its ability to obtain sufficient financing in the future; the Company’s
dependence on its relationships with third parties; the Company’s joint
ventures; the potential of currency fluctuations and political or
economic instability  in countries in which the Company operates;
currency exchange fluctuations; the Company’s ability to manage its
growth effectively; the trading market for the ordinary shares of the
Company; uncertainty with respect to the Company’s plans to continue to
develop its operations and new projects; the Company’s dependence on
key personnel; possible conflicts of interest of directors and officers
of the Company, and various risks associated with the legal and
regulatory framework within which the Company operates.

Although management of the Company has attempted to identify important
factors that could cause actual results to differ materially from those
contained in forward-looking information, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such statements.

SOURCE Horizonte Minerals plc


Source: PR Newswire