Horizon Gold’s $7M Capital Raise: What It Means for Gum Creek’s Future
Horizon Gold has successfully completed its renounceable entitlement issue, raising nearly $7 million including a full shortfall placement, positioning the company for further development at its Gum Creek Gold Project.
- Completed entitlement issue raising $6.95 million
- Shortfall placement of 2.08 million shares at $0.48 each
- Total shares on issue to reach 169.6 million post-issue
- Funds aimed at advancing Gum Creek Gold Project exploration
- Significant mineral resource of 2.14 million ounces gold at Gum Creek
Capital Raise Completion
Horizon Gold Limited (ASX – HRN) has announced the successful completion of its renounceable entitlement issue, raising a total of $6.95 million. The company has also secured firm commitments to place the entire shortfall of 2,083,234 shares at $0.48 each, adding nearly $1 million to the capital raise. Settlement and issuance of these shortfall shares are scheduled for early September, bringing the total shares on issue to 169,643,827.
Strategic Implications for Gum Creek
This capital injection comes at a pivotal time for Horizon Gold, which is focused on advancing its 100% owned Gum Creek Gold Project in Western Australia. The project boasts a substantial mineral resource estimate of 44.45 million tonnes at 1.50 grams per tonne gold, equating to 2.14 million ounces. Notably, 63% of this resource is classified as indicated, underscoring the project's potential for development and production.
Market and Investor Confidence
The full subscription of the entitlement issue, including the shortfall placement, signals strong investor confidence in Horizon Gold’s growth prospects. The pricing at $0.48 per share reflects a valuation that supports the company’s exploration and development ambitions without excessive dilution. The company’s management, led by Managing Director Leigh Ryan, has emphasized the importance of this funding round in underpinning ongoing exploration activities and potential resource expansion.
Looking Ahead
With the capital raise now complete, Horizon Gold is well-positioned to accelerate its exploration programs and potentially move towards development milestones at Gum Creek. While the announcement does not detail specific allocation of the funds, the market will be watching closely for updates on drilling results, resource upgrades, and any shifts in project timelines that this funding enables.
Bottom Line?
Horizon Gold’s successful capital raise sets the stage for the next phase of growth at Gum Creek, but investors will seek clarity on how funds translate into tangible project progress.
Questions in the middle?
- How will Horizon Gold allocate the nearly $7 million raised across exploration and development activities?
- What are the expected timelines for advancing Gum Creek towards production following this funding?
- Could further capital raises be necessary if exploration results prompt accelerated development?
