Horizon Minerals (ASX:HRZ) has locked in a $9.6 million investment from Golden Crane Holdings to fund project development and potentially retire or refinance debt.
The junior explorer, which is in the process of acquiring fellow small cap Poseidon Nickel (ASX:POS), plans to issue the private equity investor 213.9 million shares at $0.045 per share in two tranches.
The first tranche of 141 million shares will be issued on Monday (13 January) under Horizon’s available placement capacity to raise an initial $6.3 million.
Tranche two will be issued in the next few months, with timing dependent on Foreign Investment Review Board approval, if required.
SKR Mining Services is acting as lead manager for the placement and will receive 2.5% commission on the total funds raised.
In late October, Horizon and Poseidon agreed to a merger to fast track the creation of a new mid-cap gold producer.
At the time, Horizon said it had also received firm commitments for a placement to raise $14 million to support the expanded business.
Horizon approved the development of its Boorara Gold Project, located 10km east of the Super Pit in Kalgoorlie, in late July 2024 to mine a series of four open pits containing 1.24 million tonnes of ore at 1.24 grams per tonne for 49,500oz of gold.
The first ore stockpile of 54,380 tonnes has undergone assaying and metallurgical test work and is being hauled to the Paddington mill for first gold production which is imminent.
Meanwhile, mining at Phillips Find 45km northwest of Coolgardie began in October 2024 under a joint venture with BML Ventures and first gold bearing ore is now being mined.
Processing of 200,000 tonnes will begin in February 2025 at FMR Investments’ Greenfields Mill and is expected to be completed by the end of June.
Managing Director Grant Haywood says Horizon is pleased to have the support of a new private equity investor to fund the ongoing developments at the two projects.
“With the gold price at all-time highs, we look forward to ongoing gold production from Boorara and Phillips Find, and further production optionality in the future from our advanced suite of development ready assets,” he says.
The gold price is heading back up and was trading at around US$2,674 ($4,315) on Friday afternoon.
Write to Angela East at Mining.com.au
Images: Horizon Minerals
