Western Australia’s Supreme Court has approved the proposed merger between Poseidon Nickel and Horizon Minerals.
Horizon agreed to acquire all of Poseidon’s fully-paid ordinary shares and options in October in a A$30 million deal. The companies’ combined resources would total around 422,700 tonnes of nickel and 1.8 million ounces of gold.
“Horizon and Poseidon are pleased to announce that the Supreme Court of Western Australia has today made orders approving the Schemes,” Poseidon and Horizon said in an ASX announcement.
“This really 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 generate value from the cash flow potential of a long project pipeline and wholly owned processing infrastructure,” Horizon managing director Grant Haywood said in October.
The merger is expected to be complete on 10 February, when Poseidon plans to lodge the court orders with the Australian Securities and Investments Commission. Poseidon will end its ASX trading on that day.
Horizon raised $9.63 million in fresh equity from Golden Crane Holdings last month, issuing 213 million new shares at $0.045 per share. The company said these funds would be used for project development and debt retirement.
The company also completed a merger with Greenstone Resources last year, providing Horizon with an additional 500,000 ounces of gold.
Horizon aims to refurbish Poseidon’s discontinued Black Swan nickel processing plant to add gold processing facilities.
Poseidon’s share price (ASX: POS) closed at $0.005 on Friday, up slightly from its previous close at $0.004. Its market capitalisation is $21 million.
Horizon’s share price (ASX: HRZ) closed at $0.049, up from its previous close at $0.048. Its market capitalisation is $76.18 million.
