Horizon Minerals Limited

Horizon and Poseidon Merging to Fast-Track the Creation of a New WA Mid-Cap Gold Producer

Horizon Minerals Limited (ASX: HRZ) (Horizon) and Poseidon Nickel Limited (ASX: POS) (Poseidon) have entered into a scheme implementation deed (Scheme Implementation Deed) pursuant to which they have agreed to a merger to be conducted by way of Schemes of Arrangement under the Corporations Act 2001 (Cth) (Corporations Act), whereby Horizon will acquire 100% of the fully paid ordinary shares in Poseidon (Poseidon Shares) and 100% of the unlisted Poseidon options under the code POSAAB, subject to the satisfaction of various conditions.


In addition, Horizon has received firm commitments for a placement to raise $14 million to support the expanded business.

HIGHLIGHTS

Logical consolidation of complementary assets in the Western Australian Goldfields

  • The proposed transaction will consolidate Horizon’s large gold resource and Poseidon’s Black Swan processing infrastructure in the Kalgoorlie-Coolgardie districts.
  • The combination provides a pathway for sustainable, long-term gold production and cashflow as an independent mid-cap producer. 1,2,3

Substantial resource base and regional tenure

  • Combined JORC Mineral Resources of ~1.8Moz gold at an average grade of 1.84g/t Au and 422,700t nickel at an average grade of 1% Ni.
  • Combined tenure of 1,309km2 in an attractive geological position in the WA Goldfields.
  • A strong pipeline of production sources, Mineral Resource growth opportunities, advanced brownfield exploration targets and greenfield exploration opportunities.1,2,3

Aligned strategy of using Poseidon’s Black Swan infrastructure to fast-track gold production

  • Refurbishment of the front end of the Black Swan processing plant and conversion of the back end to facilitate gold production presents a significantly faster, lower capital pathway to gold production compared to building a new gold processing plant in the region.
  • Horizon’s 465koz Burbanks and 428koz Boorara gold deposits form the cornerstone assets in a project pipeline aiming to deliver a 5-year mine plan to fill the Black Swan processing plant.
  • Conversion of the Black Swan processing plant to a gold plant with throughput optionality will unlock latent value in Horizon’s portfolio and open up the region for toll milling and further consolidation.4

Shared focus and ambition to become the next mid-tier gold producer

  • Horizon aims to become a sustainable, 100kozpa standalone producer following the merger and conversion & recommissioning of the Black Swan processing plant.

Strategically positioned and permitted infrastructure

  • In addition to the combined entity’s Kalgoorlie-Coolgardie gold assets, Lake Johnston and Windarra present highly strategic assets that have the ability to deliver further shareholder value.
  • Situated in the southern Goldfields, the permitted Lake Johnston 1.5Mtpa processing plant and associated infrastructure presents an opportunity to develop a lithium processing hub in this emerging lithium province.
  • Located in Laverton, Windarra’s water resource and gold tailings present highly strategic assets

Potential for re-rating based on enhanced scale and market relevance

  • Enhanced trading liquidity and scale to drive increased market relevance, grow investor appeal and improved access to capital.
  • Lower combined corporate overheads to enable greater focus on asset investment.

OVERVIEW

Pursuant to the terms of the Scheme Implementation Deed:

  • each Poseidon shareholder will receive 0.1156 Horizon shares for every 1 Poseidon Share held (the Share Scheme);
  • each holder of Poseidon options (other than a POS Incentive Option5 – see below) (Poseidon Options) will receive 0.1156 new Horizon options for every 1 Poseidon Option held (the Option Scheme and, together with the Share Scheme, the Schemes); and
  • Poseidon, Horizon and each holder of POS Incentive Options will enter into a deed under which all of the relevant POS Incentive Options will be cancelled (or transferred to Horizon or its nominee) for cash consideration, with effect from the Implementation Date and conditional on the Scheme becoming effective (POS Incentive Option Deed). The POS Incentive Options are not subject to the Option Scheme.

The exchange ratio under the Share Scheme was based on a 40% premium to the 30-day volume weighted average price (VWAP) of $0.0042 per Poseidon share for the period up to 22 October 2024 that is $0.006. Based on the last trading price of Poseidon shares as at 22 October 2024, which was $0.006 and represents a 0% premium to the last traded price.

Following implementation of the Schemes, Horizon shareholders will own 69.8% of the Combined Group (defined below) while Poseidon shareholders will own the remaining 30.2%.

The Schemes are unanimously recommended by the POS Independent Board.6 Each member of the POS Independent Board intends to vote all Poseidon Shares they control in favour of the Share Scheme and all Poseidon Options they control in favour of the Option Scheme, subject to no Superior Proposal7 emerging and the Independent Expert concluding (and continuing to conclude) that the Schemes are in the best interests of Poseidon shareholders and holders of Poseidon Options, respectively.

Under the proposed transaction the combined group will have a global JORC Mineral Resource of ~1.8Moz of gold and ~422.7kt of nickel, as well as 1,309km2 of attractive exploration tenure and two strategically located processing facilities in Black Swan and Lake Johnston.

The Black Swan processing plant has a 2.2Mtpa nickel sulphide concentrator and associated infrastructure and is ideally located as a central processing hub for Horizon’s gold projects as well as for regional toll treatment opportunities. The Black Swan concentrator will also unlock value for Horizon’s high-grade Nimbus silver, zinc and gold project which contains 20.2Moz of silver, 78koz gold and 104kt of zinc.

The proposed transaction brings together complementary assets. A Feasibility Study on the refurbishment and conversion of the Black Swan processing plant to gold production from Horizon’s large baseload and satellite gold deposits will be undertaken. The Feasibility Study is expected to be completed in the second half of 2025 with first gold production from Black Swan currently targeted for mid-2026.

The conversion of the Black Swan processing plant for gold processing would utilise the existing crushing and grinding circuit and likely involve the addition of a carbon in leach (CIL) circuit, elution plant and gold room. The Black Swan plant is currently on care and maintenance and will require some refurbishment. Horizon’s Feasibility Study will provide an up-to-date estimate of the cost of completing this work.

The combined group of Horizon and Poseidon (the Combined Group) will be pursuing its growth strategy from a position of greater market scale, underpinned by an estimated pro-forma cash and listed investments balance of ~$19 million (inclusive of the Placement) and lower consolidated cost base. Following implementation of the Schemes, Poseidon will be delisted from the ASX and become a subsidiary of Horizon, and the Combined Group will continue to trade as Horizon Minerals Ltd under the ticker ASX: HRZ.

Completion of the Schemes is targeted for late January / early February 2025. The Schemes remain subject to various customary closing conditions, including the approval of Poseidon shareholders, holders of Poseidon Options, and the Court, which are summarised below.

Commenting on the proposed merger, Horizon Managing Director Mr Grant Haywood said:

“We believe this proposed merger represents a unique opportunity to unlock the value of our significant gold resource in the WA Goldfields and leverage strategically located processing infrastructure.

This really is a logical consolidation of complementary assets, delivering a near term and cost- effective processing pathway and creates greater potential for both sets of shareholders to create value from the cashflow generation potential of a long project pipeline and wholly owned processing infrastructure.

Outside gold, the merged nickel and silver assets enhances the respective asset values of both parties and retains full exposure for the combined shareholder group to crystalise value in any future sustained price upturn for these commodities.”

Poseidon Nickel CEO Mr Brendan Shalders commented:

“The Schemes announced today are a pivotal step towards establishing a significant gold business and provides Poseidon shareholders and holders of Poseidon Options with an exciting opportunity to become part of an emerging gold producer at a time when the gold price is at all-time highs.

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


Click here for the Horizon & Poseidon Merger Presentation

Click here for the full ASX Release

This article includes content from Horizon Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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Expediting the path to gold production

Horizon Minerals Limited  Growth and Infill Drilling Underway at Burbanks

Horizon Minerals Limited Growth and Infill Drilling Underway at Burbanks

Perth, Australia (ABN Newswire) - Horizon Minerals Limited (ASX:HRZ) is pleased to announce the commencement of drilling at the high grade Burbanks project, located approximately 9km to the south of Coolgardie in the heart of the Western Australian Goldfields (Figure 1*)

- Extensional and infill drilling has commenced at the high-grade Burbanks gold project, 9km south of Coolgardie in the Western Australian Goldfields

- Two phase RC and diamond drill programs for 30,000m planned:

o Phase 1 comprises ~15,000m of infill drilling to enhance resource continuity and confidence with results expected in the September 2025 quarter

o Phase 2 comprises ~15,000m of extensional drilling, targeting along strike and down dip of known high grade lodes

- Underground mining at Burbanks historically produced 324koz @ 22.7g/t Au

- The historical production is in addition to the existing JORC (2012) Mineral Resource of:

o 6.1Mt grading 2.4g/t Au for 466koz

- Infill and extension drilling in late 2023 intercepted significant mineralisation immediately down dip of historical high-grade intercepts with results including:

o 0.3m @ 45.40g/t Au from 428.1m (BBRC437D)
o 7.0m @ 5.51g/t Au from 130.0m (BBRC437D)
o 1.55m @ 20.43g/t Au from 301.0m (BBRC463D)
o 2.0m @ 11.79g/t Au from 425.0m (BBRC463D)

- Burbanks is expected to make a meaningful long-term contribution of high-grade ore feed to a refurbished Black Swan processing plant in the future

- The Black Swan PFS is scheduled for completion in the December quarter 2025

Commenting on the Burbanks drilling, Managing Director and CEO Mr Grant Haywood said:

"Past drilling at Burbanks has demonstrated the growth potential of this high-grade mineralised system both along strike and at depth. Our first phase of drilling will focus on transitioning more of the existing resource into the higher confidence JORC Indicated category to enable future conversion to an Ore Reserve and to progress this cornerstone asset towards being development ready. The second phase will then seek to deliver on the extensional potential seen in earlier drilling.

"As part of our strategy to become a standalone gold producer, we're undertaking a Pre-Feasibility Study to generate a five-year life of mine plan to feed our Black Swan processing facility, with Burbanks one of the key sources of high-grade mill feed for the plant. Refurbishment studies for Black Swan are being undertaken concurrently with the aim of first gold pour by the end of 2026."

The Company is focussed on becoming a standalone gold producer by refurbishing and repurposing it's Black Swan processing plant into a gold plant with a nominal throughput of 1.5Mtpa. Horizon is undertaking a Pre-Feasibility Study (PFS) to develop a five-year life of mine plan to fill the plant, and the Company believes that Burbanks will make a meaningful contribution of high-grade ore feed.

The Burbanks Project was acquired through the merger with Greenstone Resources Limited in June 2024. The project covers over 5km of strike in the highly prospective Burbanks Shear which historically is the most significant gold-producing structure within the Coolgardie Goldfield.

Project Geology

The Burbanks gold deposit is hosted by the high-Mg basalt and dolerite of the Burbanks Formation.

Alteration and several phases of metamorphism within the sequence has produced varying mineralogy, texture, and grain size within the mafic precursor, which historically has led to the description of gabbro and garnetiferous diorite as part of the host sequence. Five lithological units that comprise the host sequence are:

- Fine-grained amphibolite with a basaltic-doleritic appearance

- Coarse-grained amphibolite with a gabbroic appearance

- Gneissic amphibolite with a schistose to mylonitic texture

- Feldspar-amphibole and garnet gneiss with a dioritic appearance

- Quartz-veined zones

The above units are also intruded by two generations of later dykes into the sequence; one felsic and one mafic.

Mineral Resource Estimate (MRE)

There are several mineral domains within the Burbanks system, including Main Lode, Burbanks North, Burbanks South and Birthday Gift. The Burbanks MRE is summarised in Table 1*.

As can be seen from Table 1*, the majority of the resource is in the Inferred mineral resource category, with 31% of the open pit and only 10% of the underground resource in the higher confidence Indicated category. To bring in a larger proportion of the resource into the mine plan and provide for a higher conversion of the resource to an Ore Reserve, further infill drilling is required.

In addition, there is some information gaps in the metallurgical data for Burbanks, particularly in relation to comminution data that will be required for the PFS being undertaken by GR Engineering Services (GRES). This drilling program along with historical core will provide samples for this metallurgical testwork.

Drill Program

Previous drill programs completed in 2023 consisted of diamond and RC drilling successfully targeting down-dip and along-strike extensions to the known high-grade gold lodes, primarily in the upper 500m, and adjacent to the existing MRE. The historical workings only extend to 140m depth on the Birthday Gift lode, and 250m on the Main Lode. Previous drilling has confirmed the extension of the Main Lode ore body along strike and down plunge, with high-grade mineralisation identified more than 100 meters below historical workings. Additionally, the discovery of mineralised structures parallel to the main shear zone suggests a broader mineralised system, presenting opportunities for low-cost resource growth.

The Horizon geology team has reviewed the Burbanks deposit in detail, and has planned a ~30,000m drill program consisting of RC pre-collars with diamond tails. Drilling is programmed over two phases.

Phase 1 comprises 45 holes for ~15,500m and will concentrate on infill drilling either side of the Main Lode, towards the Birthday Gift and Burbanks North lodes to enhance resource continuity and resource confidence, and transition more of the resource from Inferred to Indicated. This will facilitate the generation of Ore Reserves and the development of a mining plan, essential steps for project advancement at Burbanks.

Guided by the Phase 1 results, the second phase of drilling will target down-dip and along strike extensions of known high-grade lodes, aiming to further expand and grow the resource base. The exploration strategy also includes targeting the projected extensions of the recently identified Burbanks North as well as parallel structures to the east.

Next Steps

Drilling is underway and initial results from Phase 1 are expected early in the September 2025 quarter.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/7CR3V963



About Horizon Minerals Limited:  

Horizon Minerals Limited (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.

Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.

Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.

News Provided by ABN Newswire via QuoteMedia

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Horizon Minerals Limited  Gold Mining and Processing Update

Horizon Minerals Limited Gold Mining and Processing Update

Perth, Australia (ABN Newswire) - Horizon Minerals Limited (ASX:HRZ) is pleased to provide an update on the development of the Phillips Find ("Phillips Find") and Boorara ("Boorara") Gold Projects.

HIGHLIGHTS

Phillips Find

- Toll processing of the second stockpile of ore from the Phillips Find JV with BML (BML Ventures Pty Ltd) completed

- 18,676 dry tonnes of ore at 1.97g/t Au and 95.5% metallurgical recovery delivered 1,132.2oz sold at an average price of $5,140/oz, generating ~$5.8M in revenue to the Phillips Find JV

- First free cashflow distribution from the project achieved, generating ~$1.5M in net cashflow directly to Horizon

- An additional 87,000t of ore will be Toll Treated at the Greenfields Mill in August 2025, including 27,000t of ore from Boorara, to complete the Toll Milling Agreement with FMR

- The remaining 70,000t of ore from Phillips Find will be processed at Focus Minerals Limited's Three Mile Hill processing plant in September/October 2025 to complete this first phase of mining at Phillips Find

Boorara

- Significant ore stockpiles, comprising approximately 190,000 tonnes of high-grade and 126,000 tonnes of low-grade

- High-grade stockpiles being prioritised for treatment under the Ore Purchase Agreement (OPA) with Norton Gold Fields to treat at the Paddington Mill for the processing of a total of 1.24Mt of Boorara ore

- March 2025 quarter payments received from Paddington included 100% payment from the first stockpile and 50% for the second stockpile, yielding $6.3M in revenue

June Quarter Revenues

- June 2025 quarter to date, $12.8M in revenue received from Paddington, in addition to $7.5M received from FRM for the treatment of 51,228 dry tonnes at a grade of 0.92g/t Au and metallurgical recovery of 94.71% for 1,439.3oz sold at an average price of $5,195/oz treated at FMR Investments' Greenfields Mill

Commenting on the mining progress, Managing Director and CEO Mr Grant Haywood said:

"We are pleased that our haulage and processing activities are ramping up to crystallise the significant cash we have tied up within our ore stockpiles, with gold production and therefore revenue increasing significantly from the March quarter with both operations starting to build up cash flow."

Phillips Find

Mining at Phillips Find has progressed safely and productively with JV partner BML Ventures (BML) since October 2024 with first gold was poured in February 2025 under the first campaign.

The second campaign of Phillips Find ore has been processed at FMR Investments' Greenfields Mill near Coolgardie totalling 18,676 dry tonnes at a grade of 1.97g/t Au and 95.5% recovery. This yielded 1,132.2oz sold at an average price of $5,140/oz, generating ~$5.8M in revenue to the JV.

The second milling campaign occurred over a four-week period, with three weeks of processing Boorara ore and one week of Phillips Find JV ore. The JV partners have agreed to an early distribution of cashflow to Horizon from this Phillips Find campaign which comprised selling 300oz of JV gold at an average price of $5,060/oz, generating ~$1.52M in net cashflow directly to Horizon.

This earlier than scheduled payment is in part due to BML and Horizon renegotiating with FMR on the timing of milling for the benefit of BML, with the planned June 2025 campaign now occurring in August 2025. This will be a four-week campaign which would normally comprise one week of Boorara ore and three weeks of Philips Find ore, however due to the deferral of cash from June to August 2025, Horizon will treat for 10 days instead of seven in August 2025, and receive the early JV distribution of cash, which has already been received.

The August campaign will be the final processing at Greenfields under the 200kt agreement with FMR, with the remaining 70kt of Phillips Find ore being processed at Focus Minerals' Three Mile Hill plant in September/October 2025.

Boorara

Mining at Boorara has continued from Pit 2 (North) and Pit 4 (South) with ~190kt of high-grade ore stocks currently on the Boorara and/or Paddington ROM pads, and ~126kt of lower-grade ore stockpiled at Boorara. As anticipated, grades are improving in line with depth.

In addition to the treatment of Boorara ore at Paddington, a campaign was also processed through FMR Investments' Greenfields Mill near Coolgardie in April 2025 totalling 51,228 dry tonnes at a grade of 0.92g/t Au and a metallurgical recovery of 94.71% for 1,439.3oz sold at an average price of $5,195/oz, generating ~$7.5M of revenue to Horizon.

As previously reported, there was a hiatus in ore haulage to Paddington between ore parcel 1 and 2 whilst mining was undertaken through lower grade zones in the pits and as a result of time delays with the grade determination and the payment process.

Mining of high-grade ore has now achieved steady state and continuous ore haulage and processing is expected to continue to Paddington.

Revenues received in 2025 at Paddington have been $2.8M in January, $2.2M in February, $1.3M in March, $3.0M in April, $6.2M in May and $3.6M in the month of June to date, totalling $19.1M, broken down by stockpile below. This excludes the $7.5M revenue received from treatment at Greenfields received in May and June 2025.

Cost performance in the June half has been impacted by the establishment of stockpiles, lower than expected grade performance in the early stages of mining at Boorara and higher strip ratio. With continuous ore production and haulage now achieved at Boorara and grade control drilling at the operations well advanced, along with lowering strip ratios while grades improve, the operations are now well set-up for stronger cost performance and cash flow generation in the December half 2025.

Next Steps

The next campaign of ore treatment at FMR's Greenfields mill is scheduled to commence in early August 2025 and will comprise approximately 27kt of Boorara ore and 60kt of Phillips Find ore that completes Horizon's contract with FMR. The remaining 70kt of high-grade Phillips Find ore is scheduled to be processed in September/October 2025 through Focus Minerals' Three Mile Hill processing plant.

Mining, haulage and continuous treatment from Boorara shall continue at steady state through the Paddington plant.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/3Z5QF1BJ



About Horizon Minerals Limited:  

Horizon Minerals Limited (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.

Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.

Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.

News Provided by ABN Newswire via QuoteMedia

Keep reading...Show less
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