Poseidon Nickel Shareholders Greenlight Merger with Horizon Minerals
Poseidon Nickel Limited and Horizon Minerals Limited have secured decisive shareholder approval for their merger via schemes of arrangement, marking a pivotal step toward creating a new mid-cap mining entity in Western Australia.
- Shareholders of Poseidon Nickel approve merger schemes with over 90% support
- Optionholders also endorse the merger with more than 82% voting in favor
- Next step: Supreme Court of Western Australia hearing scheduled for 7 February 2025
- Merger expected to complete around 19 February 2025, pending court approval
- Merger aims to fast-track creation of a new mid-cap gold and nickel producer
Background to the Merger
Poseidon Nickel Limited (ASX: POS) and Horizon Minerals Limited (ASX: HRZ) have been progressing a merger plan announced in October 2024, designed to combine their assets and operations through a scheme of arrangement. This strategic move aims to create a stronger, more diversified mid-cap mining company focused on nickel and gold production in Western Australia.
The merger involves Horizon Minerals acquiring 100% of Poseidon's fully paid ordinary shares and options under the code "POSAAB," subject to customary conditions and regulatory approvals.
Shareholder and Optionholder Approval
On 31 January 2025, Poseidon Nickel convened meetings for shareholders and POSAAB optionholders to vote on the proposed schemes. The results were emphatic: 90.57% of shareholders present voted in favor of the Share Scheme Resolution, with 93.39% of total votes cast supporting it. Similarly, 93.33% of optionholders present backed the Option Scheme Resolution, with 82.09% of total votes cast in favor.
These voting outcomes comfortably exceeded the required thresholds, more than 50% of voters present and at least 75% of votes cast, signaling strong support for the merger from Poseidon's securityholders.
Next Steps and Conditions
Despite this decisive approval, the merger remains contingent on several conditions. The Supreme Court of Western Australia is scheduled to hold a second hearing on 7 February 2025 to formally approve the schemes. Additionally, the independent expert retained to assess the transaction must continue to affirm that the merger is in the best interests of Poseidon securityholders, absent any superior proposal.
Assuming these conditions are met or waived, the merger implementation is targeted for around 19 February 2025. This includes the suspension of Poseidon shares from trading on the ASX and the termination of their official quotation, marking the full integration of Poseidon into Horizon Minerals.
Strategic Implications
The merger is positioned to fast-track the creation of a new Western Australian mid-cap gold and nickel producer, combining Poseidon's nickel assets with Horizon's gold projects. This consolidation could enhance operational efficiencies, broaden the resource base, and improve capital market appeal amid a competitive mining sector.
Market participants will be watching closely as the merger progresses through the final court approval stage, with potential implications for share valuations and sector dynamics.
Bottom Line?
With shareholder approval secured, the spotlight now turns to the court’s final endorsement and the merger’s impact on the WA mining landscape.
Questions in the middle?
- Will the Supreme Court approve the schemes without modifications on 7 February?
- How will the merged entity prioritize nickel versus gold assets operationally?
- What are the potential risks if any remaining conditions to the merger are not satisfied?
