Horizon Minerals Announces $9.6 Million Funding for Project Expansion
HORIZON MINERALS LIMITED (HRZ) Share Update January 2025 Thursday 9th
Horizon Minerals Secures $9.6 Million for Project Development
Horizon Minerals Limited (ASX: HRZ) has announced a significant funding initiative aimed at advancing its project development and potentially refinancing existing debt.
Instant Summary:
- Executed Share Subscription Agreement with Golden Crane Holdings for $9.625 million.
- 213,888,888 ordinary shares to be issued at $A0.045 per share.
- Funds to support project development and debt refinancing.
- Boorara project development approved, targeting 49.5koz of gold.
- First gold production from Boorara and Phillips Find imminent.
Funding Details
Horizon Minerals Limited has successfully negotiated a Share Subscription Agreement with Golden Crane Holdings Limited. This agreement involves a two-tranche private placement to issue 213,888,888 ordinary shares at an issue price of $A0.045 per share, raising a total of A$9,625,000 in cash.
The funds will be directed towards ongoing and future project development initiatives, as well as potentially retiring or refinancing existing debt. The placement will be executed in two tranches, with the first tranche involving the issuance of 141,000,000 shares for A$6,345,000. The second tranche will see the issuance of 72,888,888 shares, contingent on Foreign Investment Review Board approval, if necessary.
Project Developments
Horizon has made significant strides in its project development efforts. The Boorara project, approved in July 2024, aims to mine a series of four open pits containing 1.24 million tonnes of ore at a grade of 1.24g/t Au, targeting a production of 49.5koz of gold. The first ore stockpile has already undergone assaying and metallurgical test work, with initial gold production expected soon.
Additionally, mining at the Phillips Find project commenced in October 2024 through a joint venture with BML Ventures Pty Ltd. The processing of 200,000 tonnes of gold-bearing ore is scheduled to begin in February 2025 and complete by June 2025.
This funding initiative is a positive development for Horizon Minerals, providing the necessary capital to advance its project portfolio and potentially improve its financial position through debt refinancing. The commitment from Golden Crane Holdings signals strong investor confidence in Horizon's growth prospects, especially with gold prices at all-time highs.
Investor Reaction:
Analysts are likely to view this announcement favorably, as it demonstrates Horizon's proactive approach to securing funding for its projects. The involvement of a new private equity investor could be seen as a vote of confidence in Horizon's strategic direction and operational capabilities.
Conclusion:
Investors should keep an eye on Horizon's progress in executing its project development plans and the potential impact on its financial health. The successful implementation of these initiatives could enhance Horizon's market position and shareholder value.