Horizon Minerals Ltd (ASX:HRZ) is raising $3.34 million to advance the fully permitted, proposed high-grade Cannon underground mine scheduled for development in the second half of this year.
As Proactive reported this week, Cannon has a total resource of 230,000 tonnes at 4.4 g/t gold for 32,330 ounces with mineralisation remaining open at depth, while the feasibility study demonstrated positive economic results under a contract mining and toll milling model.
Read: Horizon Minerals plans 20,000 metres of exploration drilling across core gold assets
Along with the permitted mine, Horizon has final mining contract/JV negotiations underway and a milling allocation in place at FMR Investments’ 1 million tonnes per annum Greenfields Mill.
The company has received firm bids to place approximately 74.1 million fully paid ordinary shares at $0.045 per share.
The Issue price of $0.045 a share represents a 4.4% discount to the last trading price of $0.047 and a 0.0% discount to the 10-day VWAP of $0.045.
New shares issued under the placement will rank equally with existing ordinary shares on issue.
Use of funds
As well as accelerating work at Cannon, Horizon will also start drilling at Penny’s Find in the June quarter of 2023.
The company will test strike and depth extensions and will infill a second mineralised domain enabling updated resource modelling and reserve studies.
Horizon will also continue the resource growth and new discovery gold exploration program across core assets including Rose Hill, Brilliant North, Binduli and the greater Cannon Golden Ridge project areas.
“At a time of record Australian dollar gold prices, our focus is now on advancing the high-grade Cannon underground mine into production in the second half of 2023," Horizon managing director Jon Price said.
"Accelerating the drilling at the Penny’s Find gold mine will enable updated resource modelling and reserve studies to be completed to have the mine ready for development in sequence.”
With funds in the bank, the company is expected to increase its news flow over the coming months as work gets underway and drilling results and updated resources and reserves are released.