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Horizon Gold (ASX:HRN) to raise $7M for Gum Creek

Mining
ASX:HRN      MCAP $39.10M
11 March 2021 03:00 (AEST)
Horizon Gold (ASX:HRN) - Managing Director, Leigh Ryan

Source: Acacia [YouTube]

Horizon Gold (HRN) will undertake a one for 4.4 renounceable entitlement offer to raise approximately $7 million.

Up to 19,954,260 new shares will be issued to participants at 35 cents.

This price represents a 14 per cent discount to the 10-day volume-weighted average price of 40.47 cents and a 29 per cent discount to the 30-day volume-weighted average price of 49.22 cents.

Major shareholder and ASX-lister Zeta Resources (ZER) and Horizon Directors have agreed to take up their full entitlements for a combined total of $5 million.

Horizon will use the funds to undertake a major drilling program at the Gum Creek Gold Project and assess resource development opportunities at the project.

Gum Creek covers around 620 square kilometres and lies within the highly prospective Gum Creek greenstone belt, which is situated around 120 kilometres southeast of Meekatharra in Western Australia.

Drilling is scheduled to begin in the June quarter with an initial 15,000 metres planned across the top 10 targets.

The entitlement offer will open on March 15, close on March 31, and shares will be issued on April 16.

Horizon has ended the day 21.5 per cent in the green with shares trading at 48 cents in a $34.68 million market cap.

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