North-West Queensland vanadium proponent Intermin Resources has reached a merger agreement with MacPhersons Resources.
The deal was being described as ‘transformational’, with the two companies holding combined estimated mineral resources of 1.15M oz of gold in the Kalgoorlie region.
The joined companies will be renamed Horizon Minerals Limited (subject to Intermin shareholder approval).
The deal will see Intermin offer one share for every 1.8227 shares in Kalgoorlie-based MacPhersons and merge via a scheme of arrangement.
On successful completion of the Merger, the combined entity intends to commence a feasibility study for the integrated development of the companies’ respective Western Australian gold projects to position it to become an emerging mid-tier gold production business.
“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,” Intermin managing director Jon Price said.
“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.”
Intermin Resources is working with AXF on the Richmond vanadium project and has been carrying out metallurgical testwork on samples.
It announced late last month that a $1.2 million drilling program had commenced at Richmond and Julia Creek tenements, with 800 holes planned for a total of 17,500m to an average depth of 30m.
Completion of the first phase of test work is scheduled for mid-2019 enabling the commencement of a preliminary feasibility study.