Horizon Minerals (ASX:HRZ) and Greenstone Resources (ASX:GSR) have officially confirmed its merger through schemes of arrangement which were originally proposed in mid-February.
Under the agreement, Horizon will acquire 100% fully paid ordinary shares in Greenstone as well as all listed Greenstone options. Horizon’s shareholders will then hold 63.1% ownership of the combined entity, which will continue operating under the Horizon Minerals brand.
Greenstone is a gold exploration and development company which owns the high-grade Burbanks Gold project located in the Goldfields region of Western Australia.
Horizon is an emerging mid-tier gold producer with high-quality projects located in the heart of the West Australian goldfields. With over 1Moz of gold in Resources and growth potential in both open-cut and underground operations.
The merger aims to establish the combined entity as a new emerging gold producer in the WA Goldfields, enabling Horizon’s expansion as a gold producer by integrating complementary assets and teams.
The merger announcement coincides with the bullish trend in the gold market, with gold prices recently reaching an all-time high. Gold is currently trading at US$2,251.80 per tonne, and the upward trajectory in prices is expected to continue.
Additionally, Horizon and Greenstone has revealed that Greenstone has engaged BDO Corporate Finance WA as an independent expert in connection with the schemes.
HRZ last traded at 3.3c, at 10am AEDT.
GSR shares are up 14.3% and last traded at 0.8c at 10am AEDT.