Horizon Minerals Ltd (ASX:HRZ) looks set to benefit from a cash injection, having received strong commitments for the placement of around 44.4 million fully paid ordinary shares in the company at $0.09 per share, targeting $4 million before costs.
The issue price represents a 10% discount to the last trading price of $0.10 and a 14% discount to the five-day volume-weighted average price (VWAP) of $0.105.
The placement received strong support from existing and new Australian and international institutional and sophisticated investors.
Additional $2 million from SPP
In addition, the company will offer eligible shareholders the opportunity to participate in a share purchase plan (SPP) on the same terms as the placement, targeting up to $2 million.
The funds will go straight into the war chest for Horizon’s large-scale exploration program across a 1,100-square-kilometre asset portfolio that includes new discovery gold and nickel drilling at the Yarmany, Lakewood and Greater Boorara-Cannon project areas, including the Cannon and Golden Ridge gold and nickel prospects.
The funds from the placement and the SPP, together with Horizon’s existing cash reserves and listed investments, will put the company in the box seat to pursue growth opportunities.
Targeting “aggressive resource growth”
Commenting on the successful capital raising, Horizon Managing Director Mr Jon Price said: “The funds to be raised from the placement and SPP enable the company to continue and accelerate the aggressive resource growth and new discovery drilling program testing multiple targets for both precious and base metals.”
“We thank our existing institutional shareholders for their continued support and welcome several new Australian and international shareholders to the register.
“We are also pleased to announce the share purchase plan enabling our large retail shareholder base the opportunity to participate in the growth of the company at the same price and terms as the placement.”