Falcao gold project transaction and private placement into Guyana Frontier Mining Corp.

Falcao gold project transaction and private placement into Guyana Frontier 
Mining Corp. 
TORONTO, Nov. 6, 2012 /CNW/ - Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) 
('Horizonte' or 'the Company') the exploration and development company focused 
in Brazil, is pleased to announce that it has entered into a share purchase 
agreement ('the Purchase Agreement') with Guyana Frontier Mining Corp. 
('Guyana Frontier') (TSX-V:GYG) for the sale (the 'Sale') of HM Brazil (IOM) 
LTD which holds Horizonte's interest in the Falcao gold project ('Falcao') in 
northern Brazil to Guyana Frontier, currently under option to AngloGold 
Ashanti Ltd. ('AngloGold'). 
Overview 


    --  This transaction is in line with Horizonte's corporate strategy
        of divesting and monetising its gold assets to focus on the
        development of the advanced Araguaia nickel project in northern
        Brazil
    --  On completion of the transaction, Horizonte will be a
        significant shareholder of Guyana Frontier providing exposure
        to Falcao and Guyana Frontier's gold project portfolio
    --  Under the terms of the transaction, two Horizonte
        representatives will join Guyana Frontier's board of directors

Horizonte's CEO Jeremy Martin said, "This is an important step for the Company 
and forms part of our development plan to monetise our gold projects and allow 
us to focus on developing our 100% owned Araguaia nickel project in Brazil. 
There is currently an 8,000 metre infill drill programme underway to upgrade 
the resource at Araguaia as we work towards the award of the Pre-Feasibility 
contract in H1 2013.

"Upon completion of the transaction, Horizonte will become a significant 
shareholder in Guyana Frontier, maintaining exposure to Falcao and providing 
an entry point into a new country that is highly prospective for gold. The 
geology and gold mineralisation of the Guiana Shield is similar to that of 
northern Brazil and represents an excellent corporate and exploration fit. The 
combined team has experience and knowledge of the region that will be utilised 
to fast-track exploration on the advanced Marudi Mountain Gold Project with 
continued development of Falcao with its joint venture partner AngloGold. 
With this in mind, I look forward to updating shareholders on the developments 
of this transaction and working with Guyana Frontier going forward as it 
focuses on building a new South American gold company."

Further Information

Falcao, which is located in the southern Carajás mining region, northern 
Brazil, is a joint venture project between Horizonte and AngloGold whereby 
AngloGold can earn a 51% interest in Falcao by expending US$4.5 million over 
three years with the right to earn a further 19% interest by completing a 
pre-feasibility study.

To date, a total of 3,663 metres of drilling has been completed in 15 diamond 
drill holes in the first phase of drilling. Initial drill results were 
reported on 16 November 2011 (drill holes 1 to 7) with encouraging gold 
mineralisation reported in drill holes 1, 2 and 3, specifically. DDH-001 
returned 11.1m grading 1.21 g/t Au from 59m, DDH-002 returned 48.9m grading 
0.93g/t Au from 172m including 15.76 m grading 1.65g/t Au, and DDH-003 
returned a high grade interval of 1.67m grading 27.70 g/t Au. Please refer 
to the press release of Horizonte on RNS and SEDAR dated 16 November 2011 and 
entitled "Horizonte Minerals Reports Positive Initial Drill Results at Falcao 
Gold Project, Brazil" for complete drill results. Potential quantity and 
grade is conceptual in nature. There has been insufficient exploration to 
define a mineral resource at Falcao and it is uncertain if further exploration 
will result in the target being delineated as a mineral resource.

As consideration for the Sale, Guyana Frontier will issue to Horizonte at 
closing an aggregate of 84,000,000 common shares in the capital of Guyana 
Frontier (the 'Shares') at a deemed price of CDN$0.05 per Share. Upon the 
completion of the Sale, Horizonte will have the right to nominate two people 
to join the five person board of directors of Guyana Frontier. Additionally 
in connection with the Sale, Guyana Frontier will effect a name change and 
consolidation of its Shares upon terms to be agreed upon between Horizonte and 
Guyana Frontier.

Horizonte has also purchased an aggregate of 8,000,000 units of Guyana 
Frontier ('Units') at a price of CDN$0.05 per Unit for an aggregate purchase 
price of CDN$400,000 by way of private placement (the 'Private Placement'). 
Each Unit consists of one Share (each, a 'Private Placement Share') and one 
common share purchase warrant (each, a 'Warrant') entitling the holder to 
acquire one additional Share at an exercise price of $0.10 for a period of 24 
months from the date of issuance in accordance with the terms and conditions 
thereof. The Private Placement remains subject to the final approval of the 
TSX Venture Exchange (the 'TSXV').

Pursuant to the above noted private transactions, as of November 6, 2012, 
Horizonte has indirectly (i) acquired ownership and control of an aggregate of 
8,000,000 Private Placement Shares and 8,000,000 Warrants; and (ii) been 
indirectly granted the right to acquire ownership and control of an additional 
84,000,000 Shares pursuant to the Purchase Agreement (the 'Acquisition 
Shares'). As a result of this transaction, Horizonte indirectly owns and 
controls an aggregate of 8,000,000 Private Placement Shares and 8,000,000 
Warrants and the right to acquire an additional 84,000,000 Acquisition 
Shares, representing approximately (i) 7.2% of the issued and outstanding 
Shares as at November 6, 2012; (ii) 49.2% of the issued and outstanding 
Shares as at November 6, 2012 calculated on a partially-diluted basis, 
assuming the exercise of the Warrants and issuance of the Acquisition Shares 
only; and (iii) 43.2% of the issued and outstanding Shares as at November 6, 
2012 calculated on a fully diluted basis. These transactions are being 
effected by Horizonte for investment purposes, and Horizonte could increase or 
decrease its investments in Guyana Frontier at any time, or continue to 
maintain its investment position, depending on market conditions or any other 
relevant factor.

Completion of the Sale is subject to a number of conditions, including the 
approval of the TSXV and the requisite majority approval of shareholders of 
Guyana Frontier. The Sale cannot close until the approval of shareholders of 
Guyana Frontier and all required regulatory approvals are obtained. There 
can be no assurance that the Sale will be completed as proposed or at all. 
Investors are cautioned that, except as disclosed in any management 
information circular or filing statement to be prepared in connection with the 
Sale, any information released or received with respect to the proposed Sale 
may not be accurate or complete and should not be relied upon.

About Guyana Frontier

Guyana Frontier is a TSXV-listed public mineral exploration company focused on 
the exploration, discovery and development of precious metals deposits in 
Guyana and Brazil in South America. Guyana Frontier began acquiring 
interests in Guyanese exploration properties in 2007, and now holds various 
rights to obtain working interests in approximately 246,460 acres (99,740 
hectares) of prospective lands in Guyana.

Guyana Frontier's flagship property is the Marudi Mountain Gold Project 
('Marudi Mountain') which covers an area of 54.67 square kilometers (13,502 
acres) in the historic Marudi Mining District of southwestern Guyana. On 6 
June 2012Guyana Frontier announced a review of a historical resource estimate 
for the Mazoa Hill deposit at Marudi Mountain. The historical resource 
estimate was first published in 1995, prior to the implementation of National 
Instrument 43-101 ('N.I. 43-101'). Guyana Frontier engaged Reserva 
International LLC, of Reno, Nevada for the review.

In June 1995, Kilborn Engineering Pacific Ltd. ('Kilborn'), of Vancouver, 
B.C., Canada, prepared an evaluation report entitled "Marudi Mountain Project, 
Project 8707-15, Evaluation Report" (the 'Evaluation Report') for Sutton 
Resources Ltd. The Evaluation Report included a resource estimate for the 
Mazoa Hill target area, where approximately 13,530 metres was drilled in 70 
historical holes, based on drill core data, geological descriptions, surface 
trenching channel samples, and adit channel samples provided to Kilborn by 
Sutton. Metallurgical test data used for the Evaluation Report were taken from 
1982 and 1991-1993 work programmes.

Historical geological resources were classified by Kilborn as "Measured & 
Indicated", and "Inferred" categories based on the "Principles of 
Resources/Reserve Classification for Minerals" contained in Circular 831 
published by the U.S. Bureau of Mines and the U.S. Geological Survey, which 
was the standard for mineral resources classifications of that era. Measured & 
Indicated resources defined by Kilborn at a cut-off grade of 0.50 g/t were 
4,594,143 tonnes grading 2.36 g/t gold for 348,589 ounces of gold, and 
Inferred resources defined at a cut-off grade of 0.50 g/t were 1,182,940 
tonnes grading 1.99 g/t gold for 75,686 ounces of gold.

The resource estimate contained in the Evaluation Report is historical in 
nature, and is not based on an existing technical report prepared under the 
guidelines of N.I. 43-101. Guyana Frontier considers the historical resource 
estimate to be relevant to continuing exploration and believes that it 
provides a conceptual indication of the potential of the gold occurrence but 
does not consider it to be reliable at this time. No more recent mineral 
resource estimate regarding the Mazoa Hill deposit is available to Guyana 
Frontier. A qualified person, as defined by the guidelines of N.I. 43-101, has 
not done sufficient work to classify the historical estimate as current 
mineral resources or mineral reserves, and Guyana Frontier is not treating the 
historical estimate as current mineral resources or mineral reserves. For more 
information please see www.guyanafrontier.com

About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX listed exploration and development 
Company with a portfolio of nickel and gold projects in the Carajas District 
of Brazil. The Company is focussed on creating value by generating and 
rapidly advancing exploration projects in tandem with joint ventures with 
major mining companies, providing mid-term cash flow, which is then used to 
develop the business and pipeline projects.

Horizonte has two committed major mining partners: Teck Resources Limited, a 
major strategic shareholder in the Company, and AngloGold, a JV partner on the 
Falcao gold project.

Horizonte owns 100 per cent of the advanced Araguaia nickel project located to 
the south of the Carajas mineral district of northern Brazil. The project has 
defined a resource with size and grades comparable to other world-class 
projects in northern Brazil and the Company has completed a Preliminary 
Economic Assessment on the project which illustrates robust economics based on 
low strip ratio, good infrastructure, large mineral resource with two viable 
alternatives for processing.

Horizonte is well funded to accelerate the development of its core project.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain 
information contained in this press release constitutes "forward-looking 
information" under Canadian securities legislation. Forward-looking 
information includes, but is not limited to, statements with respect to the 
potential of the Company's current or future property mineral projects; the 
success of exploration and mining activities; cost and timing of future 
exploration, production and development; the estimation of mineral resources 
and reserves and the ability of the Company to achieve its goals in respect of 
growing its mineral resources; and the realization of mineral resource and 
reserve estimates. Generally, forward-looking information can be identified by 
the use of forward-looking terminology such as "plans", "expects" or "does not 
expect", "is expected", "budget", "scheduled", "estimates", "forecasts", 
"intends", "anticipates" or "does not anticipate", or "believes", or 
variations of such words and phrases or statements that certain actions, 
events or results "may", "could", "would", "might" or "will be taken", "occur" 
or "be achieved". Forward-looking information is based on the reasonable 
assumptions, estimates, analysis and opinions of management made in light of 
its experience and its perception of trends, current conditions and expected 
developments, as well as other factors that management believes to be relevant 
and reasonable in the circumstances at the date that such statements are made, 
and are inherently subject to known and unknown risks, uncertainties and other 
factors that may cause the actual results, level of activity, performance or 
achievements of the Company to be materially different from those expressed or 
implied by such forward-looking information, including but not limited to 
risks related to: exploration and mining risks, competition from competitors 
with greater capital; the Company's lack of experience with respect to 
development-stage mining operations; fluctuations in metal prices; uninsured 
risks; environmental and other regulatory requirements; exploration, mining 
and other licences; the Company's future payment obligations; potential 
disputes with respect to the Company's title to, and the area of, its mining 
concessions; the Company's dependence on its ability to obtain sufficient 
financing in the future; the Company's dependence on its relationships with 
third parties; the Company's joint ventures; the potential of currency 
fluctuations and political or economic instability in countries in which the 
Company operates; currency exchange fluctuations; the Company's ability to 
manage its growth effectively; the trading market for the ordinary shares of 
the Company; uncertainty with respect to the Company's plans to continue to 
develop its operations and new projects; the Company's dependence on key 
personnel; possible conflicts of interest of directors and officers of the 
Company, and various risks associated with the legal and regulatory framework 
within which the Company operates.

Although management of the Company has attempted to identify important factors 
that could cause actual results to differ materially from those contained in 
forward-looking information, there may be other factors that cause results not 
to be as anticipated, estimated or intended. There can be no assurance that 
such statements will prove to be accurate, as actual results and future events 
could differ materially from those anticipated in such statements.

For further information visitwww.horizonteminerals.com or contact:

Jeremy Martin Horizonte Minerals plc Tel: +44 (0) 20 7763 7157  David Hall 
Horizonte Minerals plc Tel: +44 (0) 20 7763 7157  Joanna Weaving finnCap Ltd 
(Corporate Broking) Tel: +44 (0) 20 7220 0500

Matthew Robinson finnCap Ltd (Corporate Finance) Tel: +44 (0) 20 7220 0500 

Ben Thompson finnCap Ltd (Corporate Finance) Tel: +44 (0) 20 7220 0500  
Felicity Edwards St Brides Media & Finance Ltd (PR) Tel: +44 (0) 20 7236 1177

Lottie Brocklehurst St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177

SOURCE: Horizonte Minerals plc

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CO: Horizonte Minerals plc
ST: Ontario
NI: MNG PVT 

-0- Nov/06/2012 13:00 GMT


 
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