PERTH (miningweekly.com) – ASX-listed Horizon Minerals will raise A$16.1-million to accelerate exploration work and mine and mill studies at its Boorara project, in Western Australia.
The company on Thursday announced that it had received binding commitments for the placement of 115-million shares, at a price of 14c each, representing a discount of 9.7% to Horizon’s 15-day volume weighted average share price.
The share placement will be conducted in two tranches, with the first consisting of 57.5-million shares to be placed under the existing placement capacity.
The second tranche of 57.5-million shares will be subject to shareholder approval at a planned general meeting scheduled for September.
The proceeds from the placement, along with existing cash reserves, will be used to accelerate reserve conservation and resource growth exploration drilling, which will start in the September quarter.
Horizon MD Jon Price said that on completion of the capital raise, the company would be fully funded to complete its largest ever exploration programme, focused on reserve conversion, resource growth and testing new discovery targets with over 70 000 m of drilling in the region.
“In addition, the company will advance the consolidated feasibility study evaluating the longer term production profile inclusive of the establishment of a standalone processing plant at the Boorara mine site.
“We are committed to growing a sustainable midtier gold-producing business in the heart of the Western Australian goldfields and the strong support shown for the company by numerous new, high quality Australian and international institutions, in addition to our strong existing shareholder base, is a clear validation of this strategy,” he added.