Horizon jags $9.625 million to develop WA gold assets

Horizon Minerals has pumped $6.345 million into its bank account via an at-market share placement of 4.5c per share, with a further $3.28 million expected shortly. Management says the majority of the funds are earmarked for the development of its soon-to-be-producing gold deposits.

Privately-owned Golden Crane Holdings will stump up the total $9.625 million via a two-tranche placement in exchange for approximately 213 million shares in Horizon. The investment has arrived at the perfect time for Horizon with the company poised to become Australia’s next gold producer.

The company is using its existing placement capacity and has issued the first tranche of shares, with the second tranche expected to follow in the next few months.

With the company on the cusp of joining the storied ranks of Australian gold producers, management says these latest funds will enable further development of its multiple gold assets and potentially may also be used to refinance or retire debt.

Horizon currently has two existing deposits being mined under separate agreements and the additional funding will position the company to potentially launch into some of its other gold deposits with gusto.

The company recently revealed its first shipment of 54,380 tonnes of ore from its Boorara gold deposit has been hauled to the nearby Paddington gold mill with gold production imminent. It is anticipating its money-spinning load will return 1400 ounces when processed, and based on A$4130 price per ounce of gold, will result in an estimated $5.78 million payday net of agreed processing costs and royalties.

However, the price of gold in local currency terms has continued to strengthen since these estimates and is now fetching more than $4360 per ounce flowing from the ongoing depreciation of the local currency against the greenback. The increasing Australian dollar price of gold will only add further to the company’s coffers.

Horizon says the initial load of ore underwent metallurgical work and assaying prior to its departure and the grade was in line with its expectations.

We are very pleased to have the support of a new private equity investor who has committed to provide $9.625 million to fund the Company’s ongoing project developments at Boorara and Phillips Find Project. With the gold price at all-time highs, we look forward to ongoing gold production from Boorara and Phillips Find, and further production optionality in the future from our advanced suite of development ready assets.

Previously, in mid-2024, Horizon revealed details of of a tie-in with Kalgoorlie firm Hamptons Transport. The contracted deal between the two firms will see mining of four open pits at Boorara, containing 1.24 million tonnes of ore grading 1.24g/t gold for 49,500 ounces.

The project was initially expected to generate $30m in expected free cashflow at $3600 per ounce gold however, with today’s local gold price exceeding $4360 per ounce, it is expected to be much higher.

Management struck an impressive deal on the mining services and load-and-haul contracts with no payments to Hamptons required until the first gold pour has been sold and funds are in the bank.

Boorara sits adjacent to Northern Star’s massive Super Pit mine in Kalgoorlie that has produced more than 60 million ounces of gold.

Horizon also recently confirmed its joint venture agreement with Kalgoorlie-based contractor BML Ventures to mine 200,000 of ore from its Phillips Find gold project near Coolgardie had ramped-up, with mining to pre-strip waste taking place and exposure to the underlying ore expected shortly.

The ore will be toll treated at the nearby Greenfields Mill over the next 11 months to produce almost 15,000 ounces of gold with the first ore on track to be processed from February.

Management also updated the market with news that its merger with Poseidon Nickel remains on track, with scheme booklets and proxy forms being dispatched to Poseidon shareholders.

Importantly, Horizon will gain access to Poseidon’s mothballed mining plant from the merger which may provide the company with the opportunity to scale-up and commercialise its collection of gold deposits scattered around the goldfields region.

With the booming gold price in local dollar terms seemingly climbing higher every other week and the company now mining at two of its valuable deposits, 2025 is shaping up as a golden year for Horizon as it transitions from developer to becoming Australia’s next gold producer.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au