Horizon Minerals
(ASX:HRZ) is set to enhance its gold production capabilities through a merger with Poseidon Nickel
(ASX:POS), creating a significant player in the Western Australian goldfields. This merger, confirmed by a Scheme Implementation Deed, will see Horizon acquiring all Poseidon shares and options, consolidating their assets under Horizon’s banner. The move aims to leverage Poseidon's Black Swan processing infrastructure, particularly by refurbishing and converting it for gold production, which offers a faster and more cost-efficient path compared to building new facilities.
The combined entity will have a substantial resource base, boasting approximately 1.8 million ounces of gold and 422,700 tonnes of nickel. This positions the newly formed group as a potential mid-cap gold producer, with a clear plan to establish sustainable long-term production. The merger is accompanied by a $14m equity placement, intended to fund critical drilling and feasibility studies, with the ultimate goal of achieving first gold production by mid-2026.
Horizon’s Managing Director, Grant Haywood, commented: “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 merger is poised to reshape the regional mining landscape, with Horizon and Poseidon shareholders anticipating a boost in asset value and future cash flow, particularly in the current favourable gold market.
