Horizon Minerals Limited Secures A$30 Million Discounted Share Placement to Accelerate Resource Expansion and Processing Upgrades

Monday, May 26, 2025
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Horizon Minerals Limited secured A$30 million through a two-tranche share placement. The new funds will boost working capital and support accelerated drilling and plant refurbishments, positioning the company for improved production and cash flow—a potential opportunity for beginner traders eyeing growth in the mining sector.

Horizon Minerals Limited has secured firm commitments to raise approximately A$30 million via a two-tranche placement of 697,674,418 new fully paid ordinary shares at A$0.043 each. The placement, which targets local and offshore institutional and sophisticated investors, is divided into an unconditional Tranche 1 that will raise about A$11.8 million and a conditional Tranche 2 aiming for roughly A$18.2 million, subject to shareholder approval at a General Meeting scheduled for around July 2025. The offered share price reflects a 12.2% discount relative to the last closing price on 21 May 2025 and an 18% discount to the volume weighted average over the previous 10 trading days. The funds are earmarked to establish a robust working capital position, underpinning accelerated exploration and drilling programs across several key projects including Burbanks (with drilling commencing in June 2025), Crake, Coote, Wilsons, Kestrel, Phillips Find, Greater Boorara, and Nimbus. Additionally, the capital will finance engineering studies to refurbish the Black Swan processing plant for gold production, support the processing of a significant Boorara ore stockpile, and potentially allow for debt retirement. Tranche 1 is expected to settle on 29 May 2025 with share issuance around 30 May 2025, while Tranche 2 will follow based on shareholder approval. In a show of confidence, each director of Horizon Minerals Limited has proposed participation in Tranche 2 through an individual subscription of 465,116 shares for A$20,000 each. Investors receive mixed signals. On the bullish side, the successful placement and the involvement of new institutional investors signal strong market confidence, with the infusion of working capital poised to drive growth through expanded exploration and operational upgrades. This strategic investment could advance production capabilities and bolster future cash flow. Conversely, the bearish perspective might highlight concerns over share dilution caused by the substantial issuance of new shares at a notable discount, as well as the inherent risks associated with exploration activities and the volatility of commodity markets. Overall, while dilution remains a potential downside, the proactive use of funds to enhance mining operations and resource evaluation positions Horizon Minerals Limited for potential long-term gains.

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