Horizon Minerals (ASX:HRZ) has received firm commitments to raise $175 million through an underwritten placement to fund development activities at the Black Swan Processing Hub (BSPH) in Western Australia.
The company will issue 162 million shares at $1.08 each, representing a 14.4% discount to the five-day volume weighted average price and a 12.6% discount to the last closing price.
The placement was fully underwritten by Petra Capital, also acting as sole lead manager and bookrunner. Euroz Hartleys acted as the co-manager for this placement.
The first tranche will raise around $55 million through the issuance of 51 million shares, followed by a conditional second tranche to raise the remaining $120 million through the issuance of 111 million shares.
Tranche two includes $120,000 in commitments from Horizon directors, subject to shareholder approval at a general meeting on or around 7 April 2026.
Meanwhile, Horizon also intends to conduct a share purchase plan to raise an additional $10 million, as reported by Mining.com.au.
Funds will be used for the refurbishment and gold processing conversion of the BSPH, site infrastructure, pre-production at the open pit and underground mines, exploration, and pre-production operating costs.
Managing Director Grant Haywood says the company is pleased to welcome a number of “new, highly credentialled Australian and offshore institutional investors”.
“The quality of funds introduced during the capital raising cements our view of the underlying fundamental value creation opportunity outlined in the Black Swan Processing Hub Studies announced this week,” Haywood says.
“The capital raising represents an important juncture for the company as we are now positioned to fund the development of the Black Swan Processing Hub and create a strategically valuable regional gold processing facility to create value for shareholders from our 1.9 million ounce resource.”
Trading Economics reports the price of gold at US$4,963 per ounce, representing a 68.74% increase for this year over year.
Horizon Minerals is an emerging mid-tier gold producer focused on projects in the west Australian goldfields.
The company is presenting at the RIU Explorers Conference in Fremantle, Western Australia being held from 17-19 February. Mining.com.au is an official media partner of this year’s event.
As reported by Mining.com.au, Horizon is targeting to advance investor awareness of its ongoing operations in Western Australia at RIU, during its presentation held on the second day of the conference.
Write to Maddison Elliott at Mining.com.au
Images: Horizon Minerals
