ASX-listed Horizon Minerals on Monday announced a toll milling agreement with FMR Investments to treat 200 000 t of ore from the Cannon underground deposit.

FMR owns the Greenfields mill, which is about 67 km by road from the Cannon project in Western Australia.

The agreed 200 000 t of ore would be processed over eight months, starting in the December quarter.

This agreement is in addition to the 1.4-million-tonne ore sale agreement with Paddington, announced a week ago.

“Together this will see us generating cash flow from two fronts in this fantastic gold price environment before the end of 2024,” commented CEO Grant Haywood.

The FMR toll milling agreement has flexibility in that Horizon can opt to treat ore other than Cannon's, including its own current resources and those acquired through the proposed merger with Greenstone Resources.

Horizon and Greenstone in February announced a merger to create a new emerging gold producer with a Joint Ore Reserve Committee-compliant mineral resource of 1.8-million ounces, as well as an exploration holding, all of which are centred around the gold mining hubs of Kalgoorlie and Coolgardie.

Horizon's share price gained 14% on Monday, trading at A$0.048 apiece.