Emerald Resources (ASX:EMR) through its wholly owned subsidiary, Emerald Resources (WA), has now become Golden Horse's largest shareholder with 20.5% equity following the divestment of its Southern Cross gold project in the Northern Territory, according to a Monday filing with the Australian bourse.

This is equivalent to 32 million Golden Horse shares at a deemed issue price of AU$0.25 apiece, the filing stated. The subsidiary may receive further deferred consideration of up to AU$3 million in Golden Horse shares contingent upon achieving certain milestones.

The divestment is part of Golden Horse's AU$18 million initial public offering. Golden Horse is poised to join the official list of the Australian Securities Exchange once conditions are satisfied.