A scheme implementation deed between Horizon Minerals and Poseidon Nickel will see Horizon acquire 100 per cent of Poseidon’s fully paid ordinary shares and unlisted Poseidon options.
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 cash flow as an independent mid-cap producer.
Additionally, Horizon has received firm commitments for a placement to raise $14 million to support the expanded business. The scheme implementation deed is subject to the satisfaction of various conditions.
Following implementation of the schemes, Horizon shareholders will own 69.8 per cent of the combined group, while Poseidon shareholders will own the remaining 30.2 per cent.
Horizon Minerals’ Managing Director, Grant Haywood, said the proposed merger represents an opportunity to unlock the value of the company’s significant gold resource in the Western Australian Goldfields and leverage strategically located processing infrastructure.
“This is a logical consolidation of complementary assets, delivering a near-term and cost-effective processing pathway and creating 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 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.”
Poseidon Nickel’s CEO, Brendan Shalders, said, “The schemes are a pivotal step towards establishing a significant gold business and provide 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.”
Under the proposed transaction, the combined group will have a global JORC mineral resource of approximately 1.8Moz of gold and approximately 422.7kt of nickel, 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 and 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.
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 and first gold production from Black Swan is 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.
The schemes are targeted for completion in late January/early February 2025. However, they remain subject to various customary closing conditions, including the approval of Poseidon shareholders, holders of Poseidon options, and the Court.
