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Horizon Minerals Limited (ASX: HRZ) (Horizon) and Poseidon Nickel Limited (ASX: POS) (Poseidon) have entered into a scheme implementation deed (Scheme Implementation Deed) pursuant to which they have agreed to a merger to be conducted by way of Schemes of Arrangement under the Corporations Act 2001 (Cth) (Corporations Act), whereby Horizon will acquire 100% of the fully paid ordinary shares in Poseidon (Poseidon Shares) and 100% of the unlisted Poseidon options under the code POSAAB, subject to the satisfaction of various conditions.

In addition, Horizon has received firm commitments for a placement to raise $14 million to support the expanded business.

HIGHLIGHTS

Logical consolidation of complementary assets in the Western Australian Goldfields

• The proposed transaction will consolidate Horizon’s large gold resource and Poseidon’s Black Swan processing infrastructure in the Kalgoorlie-Coolgardie districts.
• The combination provides a pathway for sustainable, long-term gold production and cashflow as an independent mid-cap producer. ^1,2,3

Substantial resource base and regional tenure

• Combined JORC Mineral Resources of ~1.8Moz gold at an average grade of 1.84g/t Au and 422,700t nickel at an average grade of 1% Ni.
• Combined tenure of 1,309km² in an attractive geological position in the WA Goldfields.
• A strong pipeline of production sources, Mineral Resource growth opportunities, advanced brownfield exploration targets and greenfield exploration opportunities.^1,2,3

Aligned strategy of using Poseidon’s Black Swan infrastructure to fast-track gold production

• Refurbishment of the front end of the Black Swan processing plant and conversion of the back end to facilitate gold production presents a significantly faster, lower capital pathway to gold production compared to building a new gold processing plant in the region.
• Horizon’s 465koz Burbanks and 428koz Boorara gold deposits form the cornerstone assets in a project pipeline aiming to deliver a 5-year mine plan to fill the Black Swan processing plant.
• Conversion of the Black Swan processing plant to a gold plant with throughput optionality will unlock latent value in Horizon’s portfolio and open up the region for toll milling and further consolidation.⁴

Shared focus and ambition to become the next mid-tier gold producer

• Horizon aims to become a sustainable, 100kozpa standalone producer following the merger and conversion & recommissioning of the Black Swan processing plant.

Strategically positioned and permitted infrastructure

• In addition to the combined entity’s Kalgoorlie-Coolgardie gold assets, Lake Johnston and Windarra present highly strategic assets that have the ability to deliver further shareholder value.
• Situated in the southern Goldfields, the permitted Lake Johnston 1.5Mtpa processing plant and associated infrastructure presents an opportunity to develop a lithium processing hub in this emerging lithium province.
• Located in Laverton, Windarra’s water resource and gold tailings present highly strategic assets

Potential for re-rating based on enhanced scale and market relevance

• Enhanced trading liquidity and scale to drive increased market relevance, grow investor appeal and improved access to capital.
• Lower combined corporate overheads to enable greater focus on asset investment.

OVERVIEW

Pursuant to the terms of the Scheme Implementation Deed:

• each Poseidon shareholder will receive 0.1156 Horizon shares for every 1 Poseidon Share held (the Share Scheme);
• each holder of Poseidon options (other than a POS Incentive Option⁵ – see below) (Poseidon Options) will receive 0.1156 new Horizon options for every 1 Poseidon Option held (the Option Scheme and, together with the Share Scheme, the Schemes); and
• Poseidon, Horizon and each holder of POS Incentive Options will enter into a deed under which all of the relevant POS Incentive Options will be cancelled (or transferred to Horizon or its nominee) for cash consideration, with effect from the Implementation Date and conditional on the Scheme becoming effective (POS Incentive Option Deed). The POS Incentive Options are not subject to the Option Scheme.

The exchange ratio under the Share Scheme was based on a 40% premium to the 30-day volume weighted average price (VWAP) of $0.0042 per Poseidon share for the period up to 22 October 2024 that is $0.006. Based on the last trading price of Poseidon shares as at 22 October 2024, which was $0.006 and represents a 0% premium to the last traded price.

Following implementation of the Schemes, Horizon shareholders will own 69.8% of the Combined Group (defined below) while Poseidon shareholders will own the remaining 30.2%.

The Schemes are unanimously recommended by the POS Independent Board.⁶ Each member of the POS Independent Board intends to vote all Poseidon Shares they control in favour of the Share Scheme and all Poseidon Options they control in favour of the Option Scheme, subject to no Superior Proposal⁷ emerging and the Independent Expert concluding (and continuing to conclude) that the Schemes are in the best interests of Poseidon shareholders and holders of Poseidon Options, respectively.

Under the proposed transaction the combined group will have a global JORC Mineral Resource of ~1.8Moz of gold and ~422.7kt of nickel, as well as 1,309km² of attractive exploration tenure and two strategically located processing facilities in Black Swan and Lake Johnston.

The Black Swan processing plant has a 2.2Mtpa nickel sulphide concentrator and associated infrastructure and is ideally located as a central processing hub for Horizon’s gold projects as well as for regional toll treatment opportunities. The Black Swan concentrator will also unlock value for Horizon’s high-grade Nimbus silver, zinc and gold project which contains 20.2Moz of silver, 78koz gold and 104kt of zinc.

The proposed transaction brings together complementary assets. A Feasibility Study on the refurbishment and conversion of the Black Swan processing plant to gold production from Horizon’s large baseload and satellite gold deposits will be undertaken. The Feasibility Study is expected to be completed in the second half of 2025 with first gold production from Black Swan currently targeted for mid-2026.

The conversion of the Black Swan processing plant for gold processing would utilise the existing crushing and grinding circuit and likely involve the addition of a carbon in leach (CIL) circuit, elution plant and gold room. The Black Swan plant is currently on care and maintenance and will require some refurbishment. Horizon’s Feasibility Study will provide an up-to-date estimate of the cost of completing this work.

The combined group of Horizon and Poseidon (the Combined Group) will be pursuing its growth strategy from a position of greater market scale, underpinned by an estimated pro-forma cash and listed investments balance of ~$19 million (inclusive of the Placement) and lower consolidated cost base. Following implementation of the Schemes, Poseidon will be delisted from the ASX and become a subsidiary of Horizon, and the Combined Group will continue to trade as Horizon Minerals Ltd under the ticker ASX: HRZ.

Completion of the Schemes is targeted for late January / early February 2025. The Schemes remain subject to various customary closing conditions, including the approval of Poseidon shareholders, holders of Poseidon Options, and the Court, which are summarised below.

Commenting on the proposed merger, Horizon Managing Director Mr Grant Haywood said:

“We believe this proposed merger represents a unique opportunity to unlock the value of our significant gold resource in the WA Goldfields and leverage strategically located processing infrastructure.

This really is a logical consolidation of complementary assets, delivering a near term and cost- effective processing pathway and creates greater potential for both sets of shareholders to create value from the cashflow generation potential of a long project pipeline and wholly owned processing infrastructure.

Outside gold, the merged nickel and silver assets enhances the respective asset values of both parties and retains full exposure for the combined shareholder group to crystalise value in any future sustained price upturn for these commodities.”

Poseidon Nickel CEO Mr Brendan Shalders commented:

“The Schemes announced today are a pivotal step towards establishing a significant gold business and provides Poseidon shareholders and holders of Poseidon Options with an exciting opportunity to become part of an emerging gold producer at a time when the gold price is at all-time highs.

“There is strong alignment between Poseidon’s strategy and that of Horizon, which is one of the core pillars underpinning this regional consolidation. Together we have greater capability to deliver on longer term cashflow generation from cornerstone operations fitting for an emerging mid-tier gold producer.”

Click here for the Horizon & Poseidon Merger Presentation

Click here for the full ASX Release

Although the final ballot was cast on October 19, BC’s 43rd provincial election was so close in several ridings that a tally of 22,000 absentee ballots was needed to decide the winner.

With 47 seats required in provincial parliament to form government, incumbent David Eby and the New Democratic Party (NDP) narrowly took control. The Conservative Party won 44 seats, and the Green Party holds two seats.

While Conservative Party leader John Rustad has conceded and Eby has claimed victory, a judicial recount is planned for Surrey-Guildford and Kelowna Center, two ridings with very close tallies.

‘Today, I met with Lieutenant Governor Janet Austin. She has asked me to form the next government. We will, and we will work hard every day to earn the trust you have placed in us,” wrote Eby.

‘People want their elected representatives to deliver results,’ he continued. ‘With renewed determination, we will build on the progress we’ve made to reduce daily costs like car insurance and childcare, hire thousands of health care workers and get you a family doctor, deliver homes you can afford, and make sure our economy works for everyone — not just those at the top. There is so much more work to do to lighten the load for people.’

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Heavy Rare Earths Limited (“HRE” or “the Company”) announces assay results from initial reference sampling at its Radium Hill project in South Australia. The Company recently announced it had acquired an 80% initial interest in the uranium rights on three projects from Havilah Resources Limited (Figure 1) (refer to ASX announcement 21 October 2024). These rights extend to rare earths (REE) and scandium (Sc) at Radium Hill.

• Assays of uranium mineralization from Radium Hill return highly elevated rare earths (up to 3.6% TREO) and scandium (up to 1081 ppm Sc₂O₃)
• HRE recently announced the acquisition of an 80% initial interest in uranium rights on a highly significant land package in South Australia’s Curnamona Province, including the Radium Hill Project
• These mineral rights extend to rare earths and scandium at Radium Hill
• Rare earths were first recognised at Radium Hill in 1908
• Academic studies of Radium Hill mineralization have recorded values of up to 7% REE¹² and 3000 ppm Sc³
• 2.6 million lbs @ 0.12% (1,200 ppm) U₃O₈ was mined at Radium Hill between 1954 and 1961

Samples were analysed to test the potential for REE and Sc in uraniferous Radium Hill lode- style mineralization. These lodes are known to extend from the historic Radium Hill mine for at least 7 kilometres in a northeast direction to Bonython Hill (Figure 2). A total of five samples were collected from historic dumps, both within the historic Radium Hill Mine site, which is excluded from HRE’s Radium Hill project, and from lode extensions which are in the project area.

Mining at Radium Hill first occurred in 1908 with the main phase of mining taking place between 1954-1961. Although the main focus of mining was on production of uranium, the presence of significant quantities of rare earths have been known from the earliest stages.

Soon after discovery of Radium Hill in 1906, the famous geologist, Antarctic explorer and academic Sir Douglas Mawson, described a previously unknown uranium mineral which he named ‘davidite’ and noted the new mineral contains “a notable amount of rare earths, uranium, vanadium, and chromium”.⁴

During the main mining phase when 2.6 million lbs of U₃O₈ were mined, there was no attempt to extract rare earths or other metals until the last stages of the operation when a solvent extraction plant was constructed on the site by AMDEL (1960‐62). This plant produced mainly scandium with some yttrium oxide (Y₂O₃) and other rare earth oxides although production figures are unclear and ore assays unavailable.

Of the five samples in the current program, three (samples RH-1, RH-2, RH-C) were collected from ore dumps adjacent to the historic Radium Hill processing plant, one (RH-B) from a dump adjacent to a historic shaft at Radium Hill North and another (RH-A) from a stockpile at Bristowe’s prospect. Sampling was designed to confirm historic reports of rare earths, scandium and other elements in Radium Hill-style uraniferous lode mineralization.

Assay results returned significant values for all five samples (Table 1).

In addition to uranium, it is apparent there are high concentrations of scandium and rare earths in these davidite-bearing samples which confirms the historic observations. The Company emphasises that these samples were collected and assayed for the purpose of checking the concentrations of metals associated with uranium in order to ascertain the validity of previous scant literature reports. These sample results are not purported to be representative of the mineralization in the region, which would require systematic sampling, including drilling and/or costeaning, to reach any firm conclusions. However, the associated metal results are sufficiently encouraging to warrant detailed follow up and inclusion in the Project’s future assay protocols and metallurgical treatment considerations.

Click here for the full ASX Release

Red Mountain Mining Limited (“RMX” or the “Company”) is pleased to report the completion of a detailed desktop review of historical exploration at Flicka Lake, part of the Company’s 100%-owned Fry Lake Gold Project in Canada. The review identified three gold bearing parallel quartz veins, validated by Troon Ventures Ltd using channel and grab samples taken from mineralised quartz zones exposed in trenches.

HIGHLIGHTS

• Recently completed desktop study has identified three parallel quartz veins, which have been targeted with grab rock samples at Flicka Lake Project in Canada
• Historical exploration identified gold bearing channel samples including 9.96 g/t Au and 12.96 g/t Au
• Previously reported grab samples included 17.88 g/t, 7.38 g/t and 20.07 g/t of Au
• Flicka Lake Gold Sampling Program Assay Results expected to be received shortly

While gold mineralisation has shown to be historically reported in the area, reportable validation sampling was completed in 2002 and 2006. Previous exploration targeted the Flicka Lake area based on the proximity to the Golden Patricia Mine located 25 km to the Northeast, where a shear hosted quartz vein averaging less than 40cm in width had been mined. The review identified the following results.

Grab sampling:

• At Vein #1, reported up to 17.88 g/t Au
• At Vein # 2, reported up to 7.38 g/t Au
• The best exposed zone, Vein #3 reported the highest assay result of 20.07 g/t Au

Channel samples:

• At Vein #2, reported up to 12.96 g/t Au
• At Vein #3, reported up to 9.96 g/t Au

The occurrence at Flicka Lake consists of 3 gold-bearing structures of limited extent hosted by gabbroic rocks that strike perpendicular to the main shear zones in the area and dip 55° to 65° to the east. The veins pinch and swell (up to 30 cm wide) and are hosted in discrete, highly strained, carbonate-actinolite-tourmaline arsenopyrite altered zones (~1.5 m wide). Refer to Figure 1 and Table 1.

RMX acquired the Flicka Lake claim, 855170, over the mineralised veins and has since undertaken due diligence with 11 rock and 11 soil samples collected within the claim boundary, Map 2.

RMX has since completed its maiden sampling program at Flicka Lake, part of the Fry Lake Gold Project in Ontario, Canada. Results are expected shortly for 283 soil and 91 rock chip samples over its Flicka Lake claims which included due diligence sampling at the Flicka Lake gold bearing quartz veins as well comprehensive sampling over the claim area’s structural and geophysical targets (Figure 2 & Tables 2/3). The review has identified additional key target zones for anomalous copper towards the Northern portion of Flicka Lake. The Lab analysis, of which results are due to be received shortly, includes a gold and base metals suite also attempting to define areas for copper mineralisation.

Background

The Flicka Lake claims lie within the Meen-Dempster Greenstone Belt and is one of four recently acquired claim packages (Figure 3) considered prospective for gold. The four 100% RMX owned properties, named Flicka Lake, Fry Lake Stock, Fry-McVean Shear and Relyea Porphyry or collectively the Fry Lake Projects, hold potential to host gold lode mineralisation based on targeting and the known deposits in the broader area. The Fry Lake Projects are located in the Uchi region, a prolific mineral belt which has produced 32Moz Au to date¹.

Click here for the full ASX Release

Description

The suspension of trading in the securities of Lithium Universe Limited (‘LU7’) will be lifted immediately, following the release by LU7 of an announcement regarding the finalisation of a capital raising.

Issued by

ASX Compliance

Click here for the full ASX Release

Lithium Universe Limited (referred to as ‘Lithium Universe’ or the ‘Company,’ ASX: ‘LU7”) is pleased to announce the following:

Placement

The Company has received binding commitments from sophisticated and professional investors pursuant to a placement to raise $2.14 million by the issue of 171,320,000 fully paid shares (“Shares”) at an issue price of $0.0125 per Share (“Placement”). The Placement is to be undertaken in two tranches:

• Tranche 1: issuing 155,320,000 Shares raising $1,941,500; and
• Tranche 2: issuing 16,000,000 Shares and raising $200,000, to be approved at a shareholders meeting, expected to be 9 December 2024 (“Shareholders Meeting”).

The issue date of the Tranche 1 Placement Shares is to take place on 8 November 2024.

Highlights

• Binding commitments received to raise $2.14 million
• Launch of pro-rata Non-Renounceable Entitlement Offer to raise $1.02 million
• Issue price of the Placement and Entitlement Offer is $0.0125 per share
• A total of $3.16 million in capital raising
• Participants in Placement and Entitlement Offer to receive free attaching options
• On the basis of 1 option for every 1 share issued with exercise price of $0.03 and expiry date of 12 January 2026
• Tranche 2 Shares and all Options to be issued under the Placement are subject to shareholder approval
• Funds will mainly be used to complete the Bécancour Lithium Refinery DFS
• Maintains momentum, closer to establishing a lithium refinery in Bécancour

Participants in the Placement will also receive, subject to shareholder approval (to be undertaken at the Shareholders Meeting), free attaching options on the basis of one (1) option for every one (1) share issued, with each option having an exercise price of $0.03 and expiry date of 12 January 2026 (“Options”). The Company intends to list the Options as soon as possible. The issue of the Tranche 1 Placement Shares will be made out of the Company’s existing placement capacity under Listing Rule 7.1 and 7.1A.

Included in the Tranche 2 Placement is an amount of $90,000 from Iggy Tan, Patrick Scallan and Gernot Abl. The share issues will also be subject to shareholder approval at the forthcoming shareholders meeting.

The Placement was jointly managed by SP Corporate Advisory (Joint Lead Manager), Ignite Equity (Joint Lead Manager), and GBA Capital (Co-Manager). The costs associated with the Placement was a 6% fee on all funds raised.

Executive Chairman, Mr Iggy Tan stated“We are pleased with the outcome of the Placement in a challenging market, which reaffirms support for the Company’s strategy to complete the Definitive Feasibility Study for the Bécancour Lithium Refinery. On September 30, 2024, the Company reached a significant milestone, having released the positive and robust Preliminary Feasibility Study, displaying strong fundamentals despite the current low lithium pricing environment.

The Company is highly committed to our shareholders, and I am pleased we can offer them the same investment terms extended to sophisticated and professional investors. The Board and Management Team remains dedicated to engaging with our existing shareholders and delivering against our strategy. If fully subscribed, proceeds from the Placement and Entitlement Offer will strengthen our balance sheet, bringing us closer to establishing an operational lithium conversion plant in Bécancour, Québec.”

Entitlement Offer

Overview

The Company also intends to undertake a non-renounceable Entitlement Offer of 1 Share for every 10 Shares held by Eligible Shareholders (defined below) at the same issue price as the Placement of $0.0125, to raise up to approximately $1.024 million (“Entitlement Offer”). Participants in the entitlement offer will also receive free attaching Options (on a 1 for 1 basis), which also will be listed. Full details of the Entitlement Offer (including the record date and eligibility requirements) will be set out in the Prospectus expected to be lodged with the ASIC on or about 30 October 2024.

Other key details for the Entitlement Offer are:

Eligible Shareholders and Applying for Shares under the Entitlement Offer

The Entitlement Offer will be open to all eligible shareholders who have a registered address within Australia, New Zealand, Germany, Hong Kong, Switzerland, the United Kingdom and Singapore and who hold shares on the record date (Eligible Shareholders), and is proposed to close on Friday 22 November 2024 (unless otherwise extended by the Board). All Shares issued will rank equally with existing Shares on issue and the Company will apply for quotation of the new Shares and Options issued pursuant to the Entitlement Offer.

Click here for the full ASX Release

In her view, it’s only a matter of time before both precious metals are squeezed higher.

‘We’ll see, but it wouldn’t surprise me to see the spot market break US$3,000 (per ounce) by the end of this year,’ she said about gold, adding that silver could finish 2024 at the US$50 per ounce level.

Zang also shared her thoughts on soaring US debt and America’s latest bank failure.

‘I don’t believe that this is a one-off event — even the American Bankers Association doesn’t believe that this is a one-off event,’ she said in reference to the closure of the Oklahoma-based First National Bank of Lindsay.

‘I think that it speaks to a much bigger issue,’ Zang added. ‘It goes back again to that debt wall, which is really a global issue. And all of the corporations and governments that have to roll over debt that they can’t afford at this level, that they took out at much lower interest rate levels. So it only adds to the woes, to be honest with you.’

In closing, she emphasized how important it is for people to become as independent and self-sufficient as possible, focusing on security in food, water, energy, barterability, wealth preservation, shelter and especially community.

‘I’ve been doing just what I’ve talked about … since 2008, when I knew the system died. We don’t have that luxury of time anymore. We are at the absolute end. I can’t tell you the exact moment, but you better be prepared before that exact moment comes,’ she said, adding, ‘We’ve got to come together in community.’

Watch the interview above for more from Zang on the above, as well as her thoughts on the BRICS Summit.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.