Horizon Minerals Ltd (ASX:HRZ) has boosted its cash balance to the tune of $2 million through the divestment of a portion of its listed investment portfolio.
The company has fully divested its shareholdings in Red Dirt Metals Ltd and Cyprium Metals Ltd (ASX:CYM) while the non-escrowed portion of its shareholding in Metal Hawk Ltd (ASX:MHK) has also been sold.
Proceeds from the sale of shares will be used to part-fund the large-scale multi-commodity exploration program that commenced in the March quarter of 2022 and for general working capital.
Horizon’s current cash at bank now totals $3.5 million while the remaining listed investment portfolio is valued at approximately $7.3 million.
Successful strategy
Managing director Jon Price said: “Horizon has been successful in creating shareholder value through the divestment of non-core assets to groups with better alignment and capacity to take the projects forward. This has been a successful strategy in creating value for both sides.
“We have worked closely with our investment companies to minimise any market disruption from share sales and will continue to do so.
“Proceeds from the recent share sales, combined with the current cash position, will contribute to the large-scale multi-commodity exploration program for 2022 that commenced earlier this quarter.”
Following the sale, the listed investment portfolio is valued at ~$7.3 million.
The company said it had worked with the relevant companies to ensure no market instability on their side with most traded off-market.
“We will continue with this approach as needed to manage cash flow for the business,” HRZ said.
Exploration program
The current large-scale exploration program is targeting new discoveries in precious, base and new energy metals.
Drill rigs are at Golden Ridge testing nickel sulphide targets with results due shortly from first-pass drilling at Lakewood and Black Flag that was testing for gold, nickel and platinum group metals.
The company is also expecting further assays from Yarmany early in the next quarter.
Summary of Horizon’s gold mineral resources.