Exploration and development firm Intermin Resources has signed a merger agreement with MacPhersons Resources to form a new company with an extensive portfolio of growth assets in the goldfields region of Western Australia.
Once the merger is complete, the combined company, to be named Horizon Minerals, will have gold projects covering an aggregate area of 1,100km² in close proximity to Kalgoorlie-Boulder, with estimated mineral resources totalling 1.15Moz of gold.
Furthermore, the entity will have exposure to multiple commodities, including vanadium, nickel-cobalt, copper and silver-zinc.
The merger will be implemented through a Scheme of Arrangement, under which Intermin will offer one share to MacPhersons shareholders for every 1.8227 shares held in the company.
The combined asset base will consist of 562,000oz of existing estimated gold resources located close to MacPhersons’ Boorara gold deposit, which is located 10km east of Kalgoorlie and has an estimated resource of 507,000oz.
MacPhersons secured approvals for open pit mine development and the construction of a new processing facility at the Boorara deposit. The company’s asset portfolio also comprises the Nimbus project that contains estimated mineral resources of 78,000oz of gold, 20Moz of silver and 104,000t of zinc.
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Intermin Resources managing director Jon Price said: “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.
“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.”
Following the closure of the transaction, Intermin shareholders will own around 55% of the combined company and MacPhersons shareholders will hold the remaining 45% stake.
Horizon Minerals will undertake a feasibility study next year for the integrated development of the companies’ gold operations.
The objective of the study is expected to be the development of an initial minimum four to five year mine plan supporting a standalone CIL processing facility.
The transaction is subject to receipt of shareholder and regulatory approvals and is expected to be closed in the first half of next year.