Intermin Resources and MacPhersons Resources have agreed to merge into a new gold company called Horizon Minerals, provided that Intermin's approve the proposal.

The combined company would combine the two companies' mineral resources for a combined 1.15 million ounces of gold and operate in the Goldfields region of Western Australia. 

Intermin is offering one full company share for every 1.8227 MacPhersons shares at 8.25 cents each.  That values the smaller company at about AU$29 Million.  When it's all said and done, MacPhersons would own 45 percent, and Intermin would hold 55 percent of Horizon.

"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," said Intermin managing director Jon Price, who will also take the same role at Horizon.  "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 mining."

MacPhersons managing director Jeff Williams said the deal would create the "economies of scale necessary to undertake a standalone development".