Poseidon Nickel Limited (ASX:POS) Reports Quarterly Highlights
Proposed Merger with Horizon Minerals
Poseidon Nickel Limited (ASX:POS) has entered into a Scheme Implementation Deed with Horizon Minerals Limited (ASX:HRZ) for a proposed merger. This Scheme of Arrangement aims for Horizon to acquire 100% of Poseidon’s shares and options. The Supreme Court of Western Australia has approved the convening of meetings to discuss the merger, with votes scheduled for 31 January 2025. If approved, each Poseidon shareholder will receive 0.1156 shares in Horizon for every Poseidon share held.
Exploration Progress and Results
The company has reported promising exploration results from its Black Swan and Lake Johnston projects. The recent infill soil sampling at Black Swan has expanded the Wilson’s gold anomaly, now measuring 2.5km by 1.5km with positive assay results. At Lake Johnston, significant copper-gold and lithium anomalies were identified, notably a large 2.3km by 3.4km lithium anomaly with peak values of 495ppm Li2O. Plans for drilling at key sites, including the Billy Ray copper-gold prospect, are underway.
Financial Overview
As of 31 December 2024, Poseidon Nickel holds cash and investments totalling $0.9 million. The company secured a $2 million loan facility with Horizon, drawing $1 million as of the end of December. During the quarter, Poseidon’s net cash outflow from operations reached $1.8 million, primarily due to ongoing administrative and exploration costs.
Key Executive Comments
CEO Brendan Shalders stated, “The proposed merger with Horizon will consolidate Poseidon’s strategic assets, allowing us to leverage an improved production pathway amid rising gold prices.” He encourages shareholders to review the Scheme Booklet prior to the upcoming vote to understand the potential benefits and risks involved in the merger.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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