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Horseshoe Metals (ASX:HOR) to raise $2m for WA copper-gold project

ASX News, Materials
ASX:HOR      MCAP $6.478M
03 February 2023 13:23 (AEST)

RC drilling on North Dump. Source: Horseshoe Metals

Horseshoe Metals (HOR) has tapped investors for $2 million through a placement to support exploration plans at its Horseshoe Lights project in Western Australia.

Under the placement, which Horseshoe said was “heavily” oversubscribed, the company issued 80 million shares at 2.5 cents — a 21.9 per cent discount to its last trading price on February 1.

Horseshoe Metals plans to use the funds to complete reverse circulation and auger infill drilling, metallurgical testing, gravity recovery testing and an ongoing review of scoping study results at its flagship copper-gold project in Western Australia.

Horseshoe is currently waiting on results from reverse circulation drilling completed late last year at the Main Zone and Motters extensions in the project area. It expects the results to give it a better understanding of the broader mineralisation structure at the Horseshoe Lights project.

Non-Executive Director Kate Stoney said she was “delighted” to have secured the funds through an “extremely well-supported” placement to new and existing investors.

“Horseshoe enters 2023 with considerable exploration momentum and a strong pipeline of acivitivity, with first assay results from our most recent drilling program expected to be delivered later this month,” Ms Stoney said.

The company believes there is “considerable exploration upside” at Horseshoe Lights, which previously produced around 316,000 ounces of gold and 55,000 tonnes of copper metal.

Horseshoe Metals shares were down 9.38 per cent to trade at 2.9 cents at 1:16 pm AEDT.

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