• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Gold Market
    Gold News
    Gold Stocks
    • Gold Market
    • Gold News
    • Gold Stocks
    1. Home>
    2. ResourcePrecious MetalsGold Investing>
    Loading...
    0

    Horizon Minerals and Poseidon Nickel to Merge, Creating Western Australian Gold Miner

    Gabrielle De La Cruz
    Oct. 28, 2024 09:20AM PST

    Horizon will acquire 100 percent of Poseidon’s fully paid ordinary shares and unlisted options via a scheme implementation deed.

    Chess pieces merging together.
    Lightspring / Shutterstock

    Horizon Minerals (ASX:HRZ) and Poseidon Nickel (ASX:POS,OTC Pink:PSDNF) said in a joint announcement on Friday (October 25) that they have agreed to merge via a scheme implementation deed.

    The deal aims to create a new Western Australian mid-cap gold producer, consolidating Horizon’s large gold resource and Poseidon’s Black Swan processing infrastructure. All assets are located in the Kalgoorlie-Coolgardie districts.

    Under the arrangement, 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.


    "There is strong alignment between Poseidon's strategy and that of Horizon, which is one of the core pillars underpinning this regional consolidation,” said Poseidon CEO Brendan Shalders. “Together we have greater capability to deliver on longer-term cashflow generation from cornerstone operations fitting for an emerging mid-tier gold producer."

    Horizon’s Burbanks and Boorara gold deposits will serve as the cornerstone assets as the combined company aims to deliver a five year mine plan to fill Poseidon’s Black Swan processing plant.

    Black Swan will be converted into a gold plant, a move that the companies believe has the potential to unlock latent value in Horizon’s portfolio and “open up the region for toll milling and further consolidation.”

    When combined, Horizon and Poseidon's projects have a JORC mineral resource of 1.8 million ounces of gold at an average grade of 1.84 grams per tonne, plus 422,700 tonnes of nickel at an average grade of 1 percent.

    Once the agreement is in place, Horizon shareholders will own 69.8 percent of the merged company, while the remaining 30.2 percent of the entity will be held by Poseidon shareholders.

    Horizon announced plans to move forward with development at Boorara in July, with the first gold pour coming in October. It is projected to generate cashflow of AU$30 million at an AU$3,600 per ounce gold price over its life.

    Meanwhile, the Black Swan processing plant has a 2.2 million tonne per year nickel sulphide concentrator. It is “ideally located as a central processing hub” for Horizon’s gold projects and other regional opportunities.

    The concentrator will also unlock value for Horizon’s high-grade Nimbus silver-gold-zinc project, which reportedly contains 20.2 million ounces of silver, 78,000 ounces of gold and 104,000 tonnes of zinc.

    “Outside gold, the merged nickel and silver assets enhance the respective asset values of both parties and retain full exposure for the combined shareholder group to crystalise value in any future sustained price upturn for these commodities,” commented Horizon Managing Director and CEO Grant Haywood.

    The merger is expected to close in late January or early February 2025, subject to customary closing conditions.

    Don’t forget to follow us @INN_Australia for real-time updates!

    Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

    From Your Site Articles
    • 5 Best-performing ASX Gold Stocks of 2024 ›
    • ASX Gold Stocks: 5 Biggest Companies in 2024 ›
    • Top 10 Gold-mining Companies (Updated 2024) ›
    • Horizon Minerals' Boorara to Become Australia's Newest Gold Mine ›
    ASX:HRZ
    https://x.com/biewritesnews
    https://www.linkedin.com/in/gabrielle-de-la-cruz-8582ba1bb/
    gdelacruz@investingnews.com
    The Conversation (0)

    Go Deeper

    AI Powered
    Gold bar on nuggets with "5 Top Australian Mining Stocks" text overlay.

    Top 5 Australian Mining Stocks This Week: Black Dragon Gold Climbs on Salave Update

    Gold nuggets on dark ground.

    Top 5 Junior Gold Mining Stocks on the TSXV in 2025

    Gabrielle De La Cruz

    Gabrielle De La Cruz

    Writer

    Gabbie graduated with a journalism degree from Colegio de San Juan de Letran - Manila and has produced articles on a variety of topics, such as infrastructure, business and technology. Her creative portfolio includes written work on architecture, art and design. Gabbie covers the Australian market for the Investing News Network, focusing on the mining sector.

    When not in front of her desk, she is out scanning through vinyl records, exploring the international coffee culture and fighting for queer rights.

    Latest News

    Underground Production Commences Reward Gold Mine Project

    High-Grade Gold Identified Within Kamperman Pit Shell

    Prismo Metals Announces Closing of Oversubscribed Private Placement

    Lode Gold Completes Final Tranche Financing for Total $1.51 Million

    Quimbaya Gold Starts Drilling at Tahami South, Testing Undrilled Gold System Beside Aris' Segovia Mine

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Gold Investing Stocks

    Asra Minerals

    ASR:AU

    Piche Resources

    PR2:AU

    Quimbaya Gold

    QIM:CC

    Sranan Gold

    SRAN:CC

    LaFleur Minerals

    LFLR:CNX

    Pacgold

    PGO:AU
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×
    Gabrielle De La Cruz
    Gabrielle De La Cruz

    Writer

    Gabbie graduated with a journalism degree from Colegio de San Juan de Letran - Manila and has produced articles on a variety of topics, such as infrastructure, business and technology. Her creative portfolio includes written work on architecture, art and design. Gabbie covers the Australian market for the Investing News Network, focusing on the mining sector.

    When not in front of her desk, she is out scanning through vinyl records, exploring the international coffee culture and fighting for queer rights.

    Full Bio

    Follow

    Learn about our editorial policies.