"This is an exciting day for
As consideration for the Antamina NPI, Horizon provided to Sandstorm:
i.
ii. A 1.66% life-of-mine silver stream referenced to the silver production from Antamina (the "Antamina Silver Stream");
iii. A long-term secured convertible note with a principal amount of
iv. 2,329,849 common shares of the Company (the "Equity Component").
In addition, Sandstorm also retained a residual royalty with payments equal to approximately one-third of the total Antamina NPI, after deducting the Antamina Silver Stream (the "Residual Royalty").
The Cash Component was funded from the Company's existing working capital and the proceeds from the private placement financing (the "Private Placement") that was completed in
With the completion of RTO Part B and the satisfaction of certain escrow release conditions, the proceeds from the Private Placement have been released from escrow and the subscription receipts from the Private Placement were converted into a total of 8,378,500 common shares of the Company and 4,189,250 nontransferable share purchase warrants (the "Warrants"). Each Warrant entitles the holder thereof to purchase one common share of the Company at an exercise price of
The Company previously announced its intention to complete a
Updated summaries of Available Funds and Principal Purpose of Funds for the next 18 months from those presented in the Company's Management Information Circular dated
Available Funds
RTO Part A, RTO Part B and Revised Minimum Concurrent Financing
Updated Amount | |
Working Capital Available as at | |
Cash | $ 32,816 |
Receivable from Sandstorm | 8,349 |
Net Proceeds from Minimum Concurrent Financing (Private Placement) | 4,853 |
Estimated Net Revenues Received from Antamina Royalty | 21,958 |
Interest Income on Cash | 845 |
Legacy RNP Receivables | 194 |
Total | $ 69,015 |
Principal Purpose of Funds
RTO Part A, RTO Part B and Revised Minimum Concurrent Financing
Budgeted Expenditure | Updated Amount |
Estimated Hod Maden Cash Contributions | $ 20,000 |
Antamina Royalty Acquisition—Cash Component | 20,000 |
Antamina Stream Obligations | 7,204 |
Payments under the RTO Part B Note | 13,257 |
G&A Expenses for the following 18 Months | 1,461 |
Commitments under the Peninsula Project Work Program | 250 |
6,843 | |
Total | $ 69,015 |
As contemplated in the Company's management information circular dated
The Antamina Copper mine is an open-pit operation located in the
For details regarding the Antamina NPI, please refer to the Horizon's news release dated
The TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
This press release does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any security and shall not constitute an offer, solicitation, sale or purchase of any securities in any jurisdiction in which such offering, solicitation, sale or purchase would be unlawful.
Notes
1.
ABOUT
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains forward-looking information within the meaning of Canadian securities laws. Forward looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "postulate" and similar expressions, or are those, which, by their nature, refer to future events. Horizon cautions investors that any forward-looking information provided by Horizon is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: estimated cash flows to be received from the Antamina NPI; expectations related to development timelines for Hod Maden including the timing of construction and expected capital costs; the Company's expectations with respect to its liquidity to fund operations over the next 18 months; the state of the financial markets for Horizon's securities; the state of the natural resources sector; Horizon's ability to raise the necessary capital or to be fully able to implement its business strategies; and other risks and factors that Horizon is unaware of at this time. Although Horizon believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.The forward-looking statements contained in this news release are made as of the date of this news release. Horizon disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE
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