Horizon’s A$30M Placement: Can It Deliver on Ambitious Expansion Goals?

Capital Raise to Fuel Growth

Horizon Minerals Limited (ASX: HRZ) has successfully secured firm commitments for a two-tranche placement aimed at raising around A$30 million. This capital raise, priced at A$0.043 per share, represents a notable discount to the company's recent trading prices, reflecting a strategic move to attract institutional and sophisticated investors both locally and offshore.

The funds raised will provide Horizon with a robust working capital position, enabling the company to accelerate its resource and exploration drilling programs and advance refurbishment studies at its Black Swan processing plant. These initiatives are critical as Horizon prepares for an expected increase in cash flow from its mining operations at Boorara and Phillips Find.

Strategic Allocation of Funds

The capital injection is earmarked for multiple key projects. Resource extension and infill drilling at Burbanks is set to commence in June 2025, alongside accelerated drilling at Crake and Coote. Horizon is also targeting both greenfields and brownfields drilling across several existing prospects, including Wilsons, Kestrel, Phillips Find, Greater Boorara, and Nimbus.

In parallel, engineering studies will support the refurbishment of the Black Swan processing plant, a move designed to enhance gold production capabilities. The funds will also cover working capital needs ahead of processing a significant stockpile of Boorara ore and may be used to retire existing debt, further strengthening the company’s financial position.

Placement Structure and Investor Confidence

The placement is structured in two tranches: the first tranche, raising approximately A$11.8 million, will settle by the end of May 2025 using existing placement capacity. The second tranche, conditional on shareholder approval expected around July 2025, aims to raise about A$18.2 million. Notably, Horizon’s directors have signaled their confidence by committing to participate in the second tranche.

Petra Capital Pty Limited acted as the sole lead manager and bookrunner, facilitating the placement and introducing a number of new institutional investors to Horizon’s shareholder register. This diversification of the investor base could provide additional stability and support as the company advances its growth strategy.

Looking Ahead

Managing Director and CEO Grant Haywood expressed optimism about the placement, highlighting its role in providing a financial buffer as Horizon prepares to process the Boorara stockpile. The company’s focus on accelerating drilling and refurbishment activities signals a clear intent to build momentum and unlock value from its gold assets.

While the placement strengthens Horizon’s position, the success of upcoming exploration and refurbishment efforts will be critical to translating this capital into operational and financial gains. Investors will be watching closely for drilling results and progress updates on the Black Swan plant as key indicators of Horizon’s growth trajectory.