Horizon Minerals Ltd (ASX:HRZ) managing director Grant Haywood joins Proactive’s Tylah Tully to discuss the company’s plans to merge with Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF).
Horizon will acquire 100% of Poseidon's shares and unlisted options, subject to various conditions.
This merger aims to consolidate their complementary assets in the Western Australian Goldfields, combining Horizon's large gold resources with Poseidon's Black Swan processing infrastructure.
The merger will create a mid-cap gold producer with a combined resource of around 1.8 million ounces of gold and 422,700 tonnes of nickel.
Horizon also plans to raise $14 million through a placement to support the expanded business.
The Black Swan processing plant will be refurbished and converted for gold production, providing a faster, cost-effective path to gold production compared to building a new plant.
Horizon aims to become a standalone 100,000-ounce-per-year gold producer after the plant's conversion, expected by mid-2026.
Upon completion, Horizon shareholders will hold 69.8% of the merged entity, and Poseidon shareholders 30.2%. The merger is expected to be finalised in early 2025, pending court and shareholder approvals