Horizon Minerals Ltd (ASX:HRZ) will use $16 million raised in a heavily oversubscribed placement to complete its largest-ever exploration program in the prolific gold producing region around Kalgoorlie-Boulder in the heart of Western Australia's Goldfields.
The company is highly encouraged by the strong support for the placement after receiving commitments for 115 million shares at 14 cents per share with funds also to be allocated to long-term mine and mill development studies.
Proceeds from the placement and existing cash reserves will be used for the accelerated reserve conversion and resource growth exploration drilling program, which will begin in the current quarter.
"Growing mid-tier production business”
Managing director Jon Price said: “What a great time to be building a West Australian gold company.
“We are committed to growing a sustainable mid-tier gold production business in the heart of the WA 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 clear validation of this strategy.
“Upon completion of this capital raising Horizon will be fully funded to complete its largest-ever exploration program, focused on reserve conversion, resource growth and testing new discovery targets with over 70,000 metres of drilling in this prolific gold producing region.”
Overwhelming investor support
The company received overwhelming support from new and existing Australian and international institutional and sophisticated investors and is now set to undertake:
- The completion of a large-scale 70,000-metre drilling program focused on reserve conversion, resource growth and testing a number of high-priority new discovery targets across the portfolio;
- Completion of the consolidated feasibility study targeted for the June 2021 quarter;
- Pursuing further regional consolidation opportunities within a 75-kilometre radius of a proposed standalone processing facility at the Boorara gold mine; and
- Additional exploration activities across the company’s extensive 850 square kilometre landholding.
New discovery drilling will also be conducted across the portfolio, including the newly granted Yarmany and Lakewood prospect areas and the exciting Kanowna South target where limited modern exploration has been conducted in the last 20 years.
Advancing feasibility study
Price continued: “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.
“The board would like to welcome our new shareholders to the Horizon register and thank our existing holders for their ongoing support.
“We are looking forward to the next phase of this exciting journey.”
In addition, Horizon is continuing to aggressively pursue further regional consolidation opportunities within trucking distance of the proposed Boorara Mill, 10 kilometres east of the City of Kalgoorlie-Boulder.