Gold developer Horizon Minerals has agreed to offload its Gunga West gold project in Western Australia (WA) to FMR Investments.

Located near Coolgardie in the WA goldfields, the Gunga West project was acquired by Horizon in 2019 as part of a larger asset swap with Northern Star Resources.

The assets considered for sale include one prospecting licence, seven mining leases and one miscellaneous licence that form the Gunga West project.

According to the agreed terms, FMR will make a A$400,000 cash payment for the transaction.

Horizon, however, will have access to its Greenfields toll mill in Coolgardie, for the treatment of 200,000t of ore, effective from 2023.

Horizon managing director Jon Price said: “The sale of Gunga West is in line with our strategy of divesting non-core assets and listed investments and we will continue to do so where it adds value for shareholders.

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“Proceeds from these sales will be used for development capital to advance the proposed sequence of underground mines using a contract mining – toll milling model delivering a greater return on investment. Securing toll milling at the Greenfields mill in Coolgardie is also a great result providing a processing solution for our Rose Hill project.”

Last year, Horizon Minerals agreed to purchase a 100% interest in the Bulong South, Glandore and Cowarna gold projects located in the WA goldfields from Aurenne Group.

The projects considered for acquisition include a combined 24 granted mining, prospecting, exploration and miscellaneous licences.