Greenstone Resources (ASX: $GSR) and Horizon Minerals Limited (ASX: $HRZ) Merger Announcement

Greenstone Resources Limited (ASX: $GSR) has announced a merger agreement with Horizon Minerals Limited (ASX: $HRZ) to create a new emerging gold producer in the WA Goldfields. The merger will be conducted through schemes of arrangement under the Corporations Act 2001 (Cth), with Horizon acquiring 100% of the fully paid ordinary shares in Greenstone and 100% of the listed Greenstone options. Each Greenstone shareholder will receive 0.2868 Horizon shares for every Greenstone share held, and each Greenstone listed option holder will receive 0.2868 new Horizon listed options for every listed Greenstone option held. The exchange ratio represents an 89% premium to Greenstone's last traded price on 9 February 2024 and a 40% premium to the 30-day volume weighted average price (VWAP) of Greenstone shares for the period up to 9 February 2024. Horizon shareholders will own 63.1% of the merged entity while Greenstone shareholders will own the remaining 36.9%.

Executive Commentary on Greenstone Resources (ASX: $GSR) and Horizon Minerals Limited (ASX: $HRZ) Merger

The merger between Greenstone Resources Limited and Horizon Minerals Limited marks a significant milestone for both companies. The combined entity will have a global JORC Mineral Resource of approximately 1.8 million ounces, positioning it as a formidable player in the gold mining industry. The merger brings together complementary assets with near-term small mining opportunities and larger baseload deposits, providing a strong foundation for sustainable growth and value creation. We are confident that the merged group will leverage its enhanced market scale and consolidated cost base to pursue a robust growth strategy, supported by a substantial cash and listed investments balance. We believe this merger will create a stronger, more competitive entity with the potential for significant near-term cashflow generation and long-term growth opportunities.

Overview of Greenstone Resources (ASX: $GSR) and Horizon Minerals Limited (ASX: $HRZ) Merger Announcement

Greenstone Resources Limited (ASX: $GSR) has entered into a merger agreement with Horizon Minerals Limited (ASX: $HRZ) to create a new emerging gold producer in the WA Goldfields. The merger will result in the formation of a combined entity with a global JORC Mineral Resource of approximately 1.8 million ounces, strategically positioned around the gold mining hubs of Kalgoorlie and Coolgardie. The merged group aims to capitalize on near-term small mining opportunities and larger baseload deposits, driving sustainable growth and value creation. With a cash and listed investments balance of approximately $14.9 million, the combined entity is poised to pursue its growth strategy from a position of greater market scale and lower consolidated cost base. The completion of the merger is targeted for June 2024, subject to customary closing conditions. Upon implementation of the merger, Horizon's CEO Grant Haywood will assume the role of Managing Director & Chief Executive Officer, and Greenstone's Managing Director & CEO Chris Hansen will replace a Non-Executive Director on the Horizon Board. The proposed merger is expected to create a stronger, more competitive entity in the gold mining industry, with a focus on near-term cashflow generation and long-term growth opportunities.