Greenstone Resources (ASX:GSR) shareholders are set to vote on a proposed merger with Horizon Minerals (ASX:HRZ) via a scheme of arrangement, under which Horizon will acquire all of Greenstone’s shares.
On 30 April 2024, the Supreme Court of Western Australia made orders directing Greenstone to convene a meeting with shareholders for the purpose of voting. The share scheme meeting will take place on 31 May 2024 at 12pm AWST, while the option scheme meeting will be held one hour after.
Horizon, which has a market capitalisation of $22.43 million, announced on 13 February 2024 that both companies agreed to the merger, whereby each Greenstone shareholder will receive 0.2868 Horizon shares for every share held.
Each Greenstone listed option holder will also receive 0.2868 new listed options in Horizon for every option held.
The scheme represents an 89% premium to Greenstone’s last traded price of $0.0055 per share, and a 40% premium to the 30-day volume weighted average price of $0.0074 per share to 9 February 2024.
Once the merger is complete, Horizon shareholders will own 63.1% of the merged entity, while Greenstone shareholders will own the remaining 36.9%.
The transaction will result in a combined landholding of 939km2 and a combined cash and listed investment balance of $14.9 million.
Horizon Minerals is an emerging mid-tier gold producer focused on its assets in Western Australia.
Greenstone Resources is a gold-focused explorer and developer that owns the Burbanks Gold Project in the Goldfields region of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
