Horseshoe Metals Ltd (ASX:HOR) Expands Gold Processing Rights
Commercial Development of Gold Surface Materials
Horseshoe Metals Ltd (ASX:HOR) has announced that its subsidiary, Murchison Copper Mines Pty Ltd, will grant an option to Melody Gold for processing gold surface materials at the Horseshoe Lights Copper-Gold Project in Western Australia. This significant development will allow Melody Gold to treat up to 500,000 tonnes of gold surface materials annually.
An initial option fee of $75,000 has been received. Should the option be exercised, Horseshoe will issue a three-year exclusive licence to cover extensive gold surface materials at the site, with a potential extension available. This strategic agreement aims to generate cash flow from the processing of materials previously accumulated from mining activities.
Ongoing Financial Considerations
The agreement stipulates ongoing financial considerations including a monthly tonnage-based payment. An advance monthly payment of $50,000 will commence upon processing, with payments reflecting the recovered gold equivalent value per tonne of processed material. This partnership is set to support the acceleration of Horseshoe’s copper Direct Shipping Ore (DSO) strategy.
CEO Kate Stoney expressed enthusiasm about the agreement, remarking, “Our team has hit the ground running in 2025; this agreement with Melody Gold signalling our clear intention to commercialise the significant and highly valuable copper and gold surface stockpiles at Horseshoe Lights as quickly as possible.”
Future Outlook and Operational Strategy
Horseshoe Metals continues to explore further potential within the Horseshoe Lights area, having identified additional copper targets within a 200km radius. The company is engaging with notable mining and commodity trading groups regarding potential copper offtake funding, with updates anticipated shortly.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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