Local gold explorers Intermin Resources and MacPhersons Resources have announced plans for a $62 million merger to form Horizon Minerals, which will hold significant assets in the Kalgoorlie region.
Under the deal, Nedlands-based Intermin will exchange one share for every 1.8 MacPhersons share, valuing MacPhersons at 8.25 cents per share.
Intermin shareholders will own 55 per cent of the new company, while Macphersons shareholders will hold the remaining 45 per cent stake.
The new entity will have a combined mineral resource of 1.1 million ounces of gold, comprising Intermin projects in Kalgoorlie, Menzies and Coolgardie, and MacPhersons’ Boorara project east of Kalgoorlie.
If the merger is completed, Horizon intends to commence a feasibility study for the integrated development of the companies’ respective existing gold projects into a standalone development.
The deal has been unanimously recommended by the MacPhersons board.
Mr Price said the merger was consistent with Intermin’s growth strategy.
“The logical consolidation of these complementary assets will provide the critical mass to underpin a larger scale production profile, improved balance sheet and stronger business,” he said.
“Combining MacPhersons’ large baseload Boorara deposit with the nearby, higher-grade Intermin projects should enable a more rapid pathway to production with sufficient scale to avoid the need for third party toll milling.”
Macphersons managing director Mr Williams said it was a transformational deal.
“The combined technical and commercial skills of the two companies is expected to greatly enhance the merged group’s capabilities,” he said.
“Together we will have a strong board and management team, large resource base of more than 1 million ounces of gold, growth options in multiple commodities and a clear development and production strategy in the WA Goldfields.”
Shares in Macphersons were up 2.44 per cent at 8.4 cents each at 12pm AEDT, while Intermin shares had lifted 3.45 per cent to 15 cents each.