Horizon and Greenstone to merge to create new gold producer

Horizon will acquire 100% of the fully paid ordinary shares in Greenstone (Share Scheme) and 100% of the listed Greenstone options (Options Scheme, and together with the Share Scheme, the Schemes), subject to the satisfaction of various conditions.

Highlights:

• Under the Schemes:
  • Each Greenstone shareholder will receive 0.2868 Horizon shares for every Greenstone share held.
  • Each Greenstone listed option holder will receive 0.2868 new Horizon listed options for every listed Greenstone option held.
• Horizon shareholders will own 63.1% of the merged entity while Greenstone shareholders will own the remaining 36.9%.
• The combined group will have a global JORC Mineral Resource of approximately 1.8 million oz, as well as an exploration holding centred around the gold mining hubs of Kalgoorlie and Coolgardie.
• Post implementation, the merged entity will continue to trade as Horizon Minerals Ltd under the ticker ASX: HRZ.
• Completion of the Schemes is targeted for June 2024.

Commenting on the proposed merger, Horizon Chief Executive Officer Mr Grant Haywood said: “We believe this proposed merger represents a unique opportunity to build our resource base in the WA Goldfields with higher grade deposits near established mining and processing infrastructure. This really is a logical consolidation of complementary assets which creates greater potential for Horizon to unlock the value within our longer project pipeline. Following a period where we divested non-core assets and brought greater focus onto a pipeline of smaller, near-term cash generating mining opportunities, this merger with Greenstone will both add to this near-term pipeline and bring greater scale to our baseload assets with the addition of the high-grade Burbanks deposit.”

Greenstone Resources Ltd Managing Director and CEO Mr Chris Hansen added: “There is strong alignment between Greenstone’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 near-term cashflow generation which provides a stepping stone to delivering a longer-life, cornerstone operations fitting for an emerging mid-tier producer. Through the combination of our teams, we are also able to bring all the necessary skillsets at a Board and senior management level which will enable us to achieve our ambitions. When put together, the merged entity will be in a much stronger position to deliver value for both sets of shareholders.”

Read the article online at: https://www.globalminingreview.com/mining/14022024/horizon-and-greenstone-to-merge-to-create-new-gold-producer/