Rock-Solid Deals: Exploring Australia's Latest Mining M&A

1. Horizon Minerals and Poseidon Nickel to merge

Among the biggest pieces of Australian merger news in 2024 was a joint announcement made by Horizon Minerals (ASX:HRZ) and Poseidon Nickel (ASX:POS,OTC Pink:PSDNF) on October 25.

The deal that aims to create a new Western Australian mid-cap gold producer.

As stated in the scheme agreement, Horizon will acquire 100 percent of Poseidon’s fully paid ordinary and unlisted options. Each Poseidon shareholder will receive 0.1156 Horizon shares for every Poseidon share held.

The merger is on schedule, with Horizon announcing on February 10 that the Supreme Court has already approved the scheme. The acquisition is set to be finalised on February 19.

2. Anglo American divests steelmaking coal assets

On January 29 of this year, Anglo American (LSE:AAL,OTCQX:AAUKF) said it completed the sale of its 33.3 percent minority interest in the Jellinbah joint venture (JV) to Zashvin, one of its JV partners.

The steelmaking coal JV was previously made up of Anglo, Zashvin and Marubeni (TSE:8002).

The company first announced plans to sell its interest in the JV this past November. The transaction closed ahead of schedule, as it was originally expected to complete during the second quarter of 2025.

Anglo plans to transform its portfolio, and the Jellinbah transaction is part of achieving this goal.

The company also said on November 25 that it plans to sell its steelmaking coal portfolio to Peabody Energy (NYSE:BTU) for US$3.78 million. When it completed the sale of its Jellinbah stake, Anglo also said it has made progress toward completing the sale to Peabody.

3. Fortescue to acquire Red Hawk Mining

Global mining company Fortescue (ASX:FMG,OTCQX:FSUMF) announced on January 28 that it plans to acquire Red Hawk Mining (ASX:RHK) through its wholly owned subsidiary FMG Pilbara.

The offer price is set at AU$1.05 per share, with potential to increase to AU$1.20 per share should FMG Pilbara acquire a relevant interest in 75 percent or more of Red Hawk’s shares within seven days.

Red Hawk's board has unanimously recommended that the offer be accepted as it is “fair and reasonable.”

"If shareholders do not accept the offer, then there is a strong possibility that Red Hawk will need to conduct an equity raising in the near term and shareholders may be diluted," Red Hawk added.

The deed contains customary deal protection mechanisms, including "no shop," "no talk" and "no due diligence" restrictions, along with notification and matching rights in the event of a competing proposal.

Unless extended or withdrawn, the proposal will be open for acceptance until 7:00 p.m. AEDT on March 3.

4. Regis Resources pursues Ravenswood gold mine

Regis Resources (ASX:RRL,OTC Pink:RGRNF) is among the interested parties in the Ravenswood gold mine in Queensland, which is currently being sold by owners EMR Capital and Golden Energy and Resources.

The asset is reportedly being sold for AU$2 billion. In a February 9 article, the Australian states that Regis has tapped investment bank Greenhill for its pursuit of the mine.

The first round of bids for the asset is due in late February, with Australian miners set to compete with foreign companies for the asset. Market Screener points to Evolution Mining (ASX:EVN,OTC Pink:CAHPF) and Gold Road Resources (ASX:GOR,OTC Pink:ELKMF) as other Australian miners interested in Ravenswood.

Located 130 kilometres south of Townsville in Queensland, Ravenswood holds gold resource estimates and gold reserve estimates of 3.9 million ounces and 2.6 million ounces, respectively.

It also boasts a gold processing facility of up to 5 million tonnes per annum.

5. Global Lithium seeks protection for Manna project

While many successful deals have made headlines, Global Lithium (ASX:GL1,OTC Pink:GBLRF) is calling for government intervention in what appears to be a Chinese takeover attempt for its Manna lithium project.

Reuters reported on February 9 that the company is “counting on government intervention after the nation's Takeovers Panel declined last week to review what Global Lithium says may be an unlawful association among China-linked shareholders seeking to control its Manna lithium project in Western Australia."

According to the news outlet, Global's campaign tests the government’s push to grow the economy and strengthen US ties through critical minerals projects, while not upsetting China, its top resources customer.

Manna is located approximately 100 kilometres east of Kalgoorlie in the Goldfields region of Western Australia. In December 2022, Global reported a mineral resource of 32.7 million tonnes at 1 percent lithium oxide.

Global halted development of the project late last year amid a protracted downturn in the battery metals market.