How Will Horizon Gold’s $12M Raise Transform Gum Creek’s Future?

Capital Raising to Propel Gum Creek Project

Horizon Gold Limited (ASX, HRN) has announced a $12 million equity raising, comprising a $5 million placement and a $7 million non-renounceable entitlement offer, both priced at $0.48 per share. This capital injection is designed to fund the completion of the feasibility study for its 100% owned Gum Creek Gold Project in Western Australia, as well as to support further high-priority resource drilling, repay existing debt, and bolster general working capital.

Strong Investor Support and Strategic Shareholder Participation

The placement attracted firm commitments from leading institutional and high net worth investors, reflecting renewed market confidence in the project’s potential. Notably, major shareholder Zeta Resources Limited and Horizon’s directors have committed to fully participate in the entitlement offer, collectively subscribing for approximately 80% of the $7 million raise. This level of insider support underscores management’s belief in the project’s value and future prospects.

Advancing Feasibility and Resource Expansion

The funds will accelerate the ongoing feasibility study, which targets free milling open pit ore with the aim of delivering a low capital cost and high return operation. This study builds on a compelling March 2024 scoping study, which was based on a gold price of A$2,900 per ounce. With gold prices now exceeding A$5,000 per ounce, the updated feasibility study, due in the first half of 2026, is expected to significantly enhance project economics.

Alongside the feasibility work, Horizon plans to undertake further drilling at multiple high-priority targets along the Gidgee Shear Zone, including shallow open pit prospects and high-grade underground zones at Kingfisher and Omega. Previous drilling results have been impressive, with intercepts such as 30 meters at 21.1 grams per tonne gold at Omega and 15 meters at 28.5 grams per tonne at Kingfisher, highlighting the potential for resource growth.

Resource Update and Market Implications

An updated Mineral Resource Estimate is expected in the second half of 2025, incorporating over 15,000 meters of recent drilling. The current resource base stands at 2.14 million ounces of gold, with 63% classified as indicated resources, providing a solid foundation for development. The capital raising and ongoing exploration efforts position Horizon to unlock further value from Gum Creek, potentially attracting additional investor interest as the project advances.