PERTH (miningweekly.com) – ASX-listed Poseidon Nickel has told shareholders that the merger between fellow-listed Aphrodite Gold and Spitfire Materials would have no impact on plans to assess possible gold production at the Black Swan processing facility, in Western Australia.
Spitfire and Aphrodite Gold on Monday executed a merger implementation agreement, giving force to an August decision to create a diversified Australian gold development company with a combined resource of 1.3-million ounces.
Under the terms of the agreement, Spitfire has agreed to acquire all the outstanding capital of Aphrodite, in which it currently holds a 10.38% stake, offering shareholders one new Spitfire share for every 2.9 Aphrodite shares held.
Poseidon and Aphrodite in July signed a memorandum of understanding (MoU) to evaluate the processing of Aphrodite’s gold mineral resources at Poseidon’s Black Swan processing facility, in Western Australia’s Eastern Goldfields.
Poseidon chairperson Chris Indermaur said on Monday that following discussions with all parties, Poseidon was of the opinion that the merger between Aphrodite and Spitfire was a positive outcome as it not only complemented the MoU, but also enhanced it.
“The synergies and fundamental drivers that underpinned the original MoU are improved and represent a compelling business opportunity for all parties, and, as such, due diligence between the parties will be progressed.”
The due diligence period on the MoU will be extended until a detailed assessment could be concluded by all the parties involved.