Golden Horse’s $3M Copper Acquisition Hinges on Shareholder Approval
Golden Horse Minerals ramps up exploration at its Southern Cross gold project with strong high-grade results and moves to acquire the Sorrel Copper Project for $3 million, backed by a $15 million capital raise.
- 7,500m drilling at Hopes Hill returns multiple high-grade gold intercepts
- Preliminary metallurgical tests show 96.7% average gold recovery
- Agreement signed to acquire 100% of Sorrel Copper Project for $3 million
- Two-tranche capital raise underway, $6.9 million completed, $8.1 million pending shareholder approval
- Strong cash position of ~$15 million to fund exploration and acquisition
Southern Cross Gold Project – Drilling Delivers Encouraging Results
Golden Horse Minerals Limited (ASX – GHM) has reported a busy quarter at its Southern Cross gold project in Western Australia, with a focused drilling campaign at the Hopes Hill prospect yielding multiple high-grade gold intercepts. Over 7,500 metres of drilling across 44 holes was completed during the June quarter, confirming the continuation of a large mineralised system along the 1.3-kilometre historic open pit. Notable assay results include 43 metres at 4.5 grams per tonne gold from 103 metres depth, highlighting the potential for a substantial resource expansion.
The company has deployed both reverse circulation and diamond drilling rigs onsite, with plans to add a second RC rig next quarter to accelerate exploration. Early metallurgical test work has been promising, indicating an average gold recovery rate of 96.7%, which bodes well for future processing economics.
Regional Exploration and Irene Betty Prospect
Beyond Hopes Hill, Golden Horse has also advanced drilling at the Irene Betty prospect, located just south of the main pit area. Initial results returned encouraging gold grades, including 2 metres at 6.0 grams per tonne and 1 metre at 8.3 grams per tonne, supporting the presence of a near-surface high-grade quartz reef. The reef remains open along strike and at depth, with further drilling planned to delineate its full extent.
Complementing drilling efforts, the company has initiated geophysical reviews and soil geochemical sampling programs across the broader Southern Cross region to identify and prioritise new exploration targets.
Sorrel Copper Project Acquisition – Strategic Diversification
In a significant strategic move, Golden Horse has executed an agreement to acquire 100% of the Sorrel Copper Project in the Northern Territory for $3 million, comprising $1 million in cash and $2 million in company shares. The project, formerly known as the Redbank Copper Project, hosts an inferred mineral resource estimate of 8.4 million tonnes at 1.1% copper, equating to approximately 88,600 tonnes of contained copper.
The acquisition is subject to shareholder approval and other customary conditions precedent. Golden Horse sees substantial upside potential in the project, with numerous untested breccia pipes identified, and plans to advance a scoping study alongside prioritising drill targets for the 2026 field season.
Capital Raising and Financial Position
To fund its accelerated exploration and the Sorrel acquisition, Golden Horse launched a two-tranche capital raising at $0.40 per share, targeting $15 million. The first tranche raised $6.9 million and settled in June, while the second tranche of $8.1 million awaits shareholder approval at a special meeting scheduled for 1 August 2025. Major shareholders, including Emerald Resources NL and company directors, have shown strong support for the placement.
At quarter end, the company held approximately $15 million in cash, with the additional tranche 2 funds expected to bolster its balance sheet further. These funds will primarily support ongoing drilling programs at Southern Cross, regional exploration, and the Sorrel Copper Project acquisition costs.
Looking Ahead
Golden Horse’s recent drilling success and strategic acquisition position it well for growth in both gold and copper markets. The company’s methodical approach to exploration, combined with a strong financial footing, suggests it is gearing up for a busy and potentially transformative period. Investors will be watching closely for the outcome of the upcoming shareholder meeting and subsequent drilling results that could further define the scale and quality of these assets.
Bottom Line?
Golden Horse’s dual focus on expanding its gold footprint and entering copper territory sets the stage for a pivotal year ahead.
Questions in the middle?
- Will the Sorrel Copper acquisition receive shareholder approval without delays?
- How will further drilling at Hopes Hill and Irene Betty influence resource estimates?
- What impact will the capital raising have on share price and investor sentiment?