Horseshoe Metals Accelerates Horseshoe Lights Development with $4M Funding and Melody Gold Pact

Reigniting Horseshoe Lights

Horseshoe Metals Limited (ASX: HOR) has marked a significant step forward in its development strategy with the recommencement of activities at its flagship Horseshoe Lights Copper-Gold Project in Western Australia. This project, historically a prolific copper and gold producer, is now poised for renewed momentum following a series of strategic moves announced in its March quarter report.

The company has mobilised plans to advance exploration and development, focusing on unlocking value from existing high-grade copper stockpiles through Direct Shipping Ore (DSO) sales. This approach aims to generate early cash flow while broader project development continues.

Strategic Partnership with Melody Gold

A key highlight is the strategic option agreement granted to Melody Gold Pty Ltd, giving them the right to process gold surface materials at Horseshoe Lights. This agreement covers several subgrade stockpiles and tailings, with Melody Gold proposing to treat up to 500,000 tonnes per annum using gravity recovery methods to produce a gold-copper-silver concentrate. Horseshoe Metals retains full rights to copper and mixed copper-gold surface materials, as well as all subsurface resources, ensuring continued upside potential.

Funding Secured to Drive Growth

To underpin these initiatives, Horseshoe Metals secured a $4 million secured convertible loan facility from Obsidian Metals Group Pty Ltd, providing essential capital for immediate operational needs, including the development of Horseshoe Lights and the DSO strategy. The loan carries a 12% interest rate and is repayable within three years, offering the company financial flexibility to advance its projects without immediate equity dilution.

Exploration and Development Outlook

Looking ahead, Horseshoe Metals plans to ramp up exploration activities with additional drilling programs targeting oxide and sulphide copper zones, as well as gold targets within the Horseshoe Lights area. The recommissioning of the onsite camp will support these efforts and facilitate the DSO start-up. Concurrently, a scoping study update is underway to refine development plans and economic assessments.

Beyond Horseshoe Lights, the company is progressing a strategic review of its Glenloth Gold Project in South Australia, adjacent to the significant Tunkillia gold deposit, and continues to advance permitting and agreements at the Kumarina Copper Project in Western Australia. These efforts underscore a diversified approach to resource development across multiple promising assets.

Resource Base and Market Position

Horseshoe Metals boasts a robust mineral resource base, with the Horseshoe Lights Project containing an in situ resource of approximately 128,600 tonnes of copper and 36,000 ounces of gold, alongside substantial surface stockpiles. The Kumarina Project adds further copper resources, enhancing the company’s portfolio. These assets position Horseshoe Metals well to capitalize on copper and gold market dynamics as it advances towards production.

While the company has not provided detailed production forecasts or price guidance, the combination of strategic partnerships, secured funding, and focused exploration activity signals a clear intent to unlock value and progress towards commercialisation.