News

March 24, 2009

Investors Have Yet To Appreciate The Potential Of Horizonte’s Joint Venture With Troy In Brazil

By Charles Wyatt

The share price of Horizonte Minerals may not have put up much of a performance so far this year, but that is the lot of small exploration companies at the moment. Horizonte, however, has more going for it than most, as it has a supportive list of shareholders, around £1 million in the kitty - which should keep it going for at least a year by itself - and three high quality intermediate projects where initial resource estimates should be completed this year. One of these is already a joint venture with the Australian company Troy Resources, and the others will surely follow as chairman David Hall sees joint ventures as the ideal way to limit the cash spend and geological risk of any project while retaining a direct interest in the outcome.

The deal with Troy was agreed in December 2007 and it involves Troy acquiring a 100 per cent interest in the Tangara project in Brazil by making a series of cash payments to Horizonte. US$200,000 was payable when the agreement was signed and a further US$100,000 has to be paid every six months thereafter, up to a value of US$800,000. In addition, Troy has to spend US$2 million on exploration on the project within the three year agreement. And if Troy wants to exercise the option after three...