PERTH (miningweekly.com) – Junior Horizon Gold will raise up to A$7.5-million in a renounceable entitlement offer to fund the scoping study at its Gum Creek gold project, in Western Australia.
The ASX-listed company this week said that owing to the ongoing exploration success and the definition of a 2.14-million-tonne mineral resource estimate, of which 1.3-million ounces could be free milled, Horizon would start an openpit scoping study.
The company on Wednesday announced plans for a one-for-five renounceable entitlement offer, which will be priced at 30c a share. Horizon is expecting to issue up to 25.03-million shares.
Major shareholder Zeta Resources, as well as directors from Horizon, have indicated their intention to take up their full entitlements for a combined amount of A$5.7-million.
Horizon on Wednesday told shareholders that an additional 10 000 m of drilling was planned at Gum Creek across 12 highly ranked gold targets, which had the potential to further increase the gold resource base. This drilling is scheduled to start in the fourth quarter of this year.