The Horizon team and our JV partners have done an excellent job progressing the internal restructure so we can now advance the IPO and ASX listing process for this world-class project,” Horizon MD Jon Price said.
Horizon Minerals Ltd (ASX:HRZ) continues to progress the demerger of its 25% interest in the Richmond Vanadium Project and proposed listing of 100% of the project on the Australian Securities Exchange.
The Richmond Vanadium Project is a 1.8 billion tonnes project in central north Queensland, backed by a pre-feasibility study which has already demonstrated a technically viable and financially attractive development project.
Work towards a bankable feasibility study is being progressed.
Dedicated IPO vehicle
In November 2021, Horizon and joint venture partner Richmond Vanadium Technology Pty Ltd (RVT) executed a Process Deed under which both companies agreed to the following outcomes:
- The restructuring of the respective project ownership interests into a dedicated incorporated vehicle holding 100% of the project (IPO vehicle) with shares initially held by Horizon (25%) and the existing shareholders of RVT (75%);
- Establishment of a high-quality board and executive team for the IPO vehicle;
- 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 with a priority entitlement to existing Horizon shareholders.
It was agreed that RVT will be the IPO vehicle and a Sale and Purchase Agreement (SPA) has now been executed, with the Shareholders Agreement to come into effect at completion, which will govern the operation of RVT until the planned IPO is executed.
Once listed, RVT will own 100% of the project with RVT shares held by Horizon (25%) and existing RVT shareholders (75%).
The sale is expected to be completed in the current quarter, subject to Horizon completing confirmatory due diligence on RVT to its satisfaction, and the receipt of required regulatory approvals for the transfer of Horizon’s project interest to the IPO vehicle.
Who’s on the board?
RVT’s new board will comprise former Western Australian MP, senior WA cabinet minister and corporate strategist Brendon Grylls as independent non-executive chair, current RVT CEO and critical minerals specialist Dr Shaun Ren as managing director and metallurgist, mineral economist and Horizon managing director Jon Price as non-executive director.
“The Horizon team and our JV partners have done an excellent job progressing the internal restructure so we can now advance the IPO and ASX listing process for this world-class project,” Horizon MD Jon Price said.
“This comes at a time when the critical minerals sector is clearly in the global frame giving Horizon shareholders excellent exposure to the emerging green energy revolution through a free in-specie distribution of shares in RVT and a priority offering in the IPO.”
The timeline to IPO is as follows:
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