How Horizon Minerals’ A$175M Raise Will Transform Black Swan Processing Hub
Horizon Minerals has successfully raised A$175 million through a two-tranche institutional placement, complemented by a planned A$10 million share purchase plan, to fund the development of its Black Swan Processing Hub near Kalgoorlie.
- A$175 million raised via two-tranche underwritten placement
- Additional A$10 million targeted through share purchase plan for eligible shareholders
- Funds allocated to refurbishment, gold processing conversion, infrastructure, and pre-production
- Second tranche subject to shareholder approval at upcoming Extraordinary General Meeting
- Placement attracted tier one institutional and high net worth investors
Capital Raising Success
Horizon Minerals Limited (ASX: HRZ) has announced a significant capital raising milestone, securing A$175 million through a two-tranche institutional placement. This funding will underpin the development of the company’s 100% owned Black Swan Processing Hub (BSPH), situated near Kalgoorlie in Western Australia’s prolific Goldfields region. The placement attracted strong support from tier one institutional investors, high net worth individuals, and existing shareholders, reflecting confidence in Horizon’s strategic vision.
Placement Structure and Shareholder Participation
The placement comprises an unconditional first tranche raising approximately A$55 million and a conditional second tranche of around A$120 million, which requires shareholder approval at an Extraordinary General Meeting expected in early April 2026. The shares are priced at A$1.08 each, representing a discount to recent trading prices, a common practice to incentivise institutional participation. Alongside this, Horizon is offering a Share Purchase Plan (SPP) to eligible shareholders, aiming to raise up to an additional A$10 million at the same price as the placement, providing retail investors an opportunity to participate in the company’s growth.
Strategic Use of Funds
The capital raised will be directed towards refurbishing and converting the Black Swan site into a gold processing hub, enhancing site infrastructure, and supporting both open pit and underground pre-production activities. Exploration and geological work will continue alongside pre-production operating costs, contingency funds, and working capital requirements. This comprehensive funding approach is designed to accelerate the project’s development timeline and position Horizon as a key regional gold processor, leveraging its substantial 1.9 million ounce resource base.
Market and Investor Implications
Managing Director Grant Haywood highlighted the quality of investors brought on board through the placement, underscoring the fundamental value creation opportunity the Black Swan Processing Hub represents. The capital raising marks a pivotal moment for Horizon, enabling it to transition from resource development to operational execution. However, the conditional nature of the second tranche introduces an element of uncertainty pending shareholder approval, and the non-underwritten SPP may see scaling back if demand exceeds targets.
Looking Ahead
With the placement settlement and share issuance for the first tranche scheduled for late February, and the EGM planned for early April, Horizon’s next steps will be closely watched by investors. The company’s ability to execute on its development plans and manage the capital efficiently will be critical to unlocking value and delivering on its growth ambitions in the competitive gold mining sector.
Bottom Line?
Horizon Minerals’ successful capital raise sets the stage for Black Swan’s transformation, but shareholder approval and execution risks remain key watchpoints.
Questions in the middle?
- Will shareholders approve the second tranche of the placement at the upcoming EGM?
- How will Horizon manage potential dilution impacts from the placement and SPP?
- What are the timelines and milestones for the Black Swan Processing Hub’s refurbishment and production start?
