Horizon Gold Secures A$30m to Fund 80,000m Drilling and Feasibility Study

Capital Raising Overview

Horizon Gold Limited (ASX:HRN) has successfully secured A$30 million in new equity funding, comprising a A$20 million placement and a A$10.2 million non-renounceable entitlement offer priced at A$1.20 per share. The placement attracted strong support from leading institutional and high net worth investors, marking a significant milestone as Horizon introduces meaningful institutional capital for the first time.

Strategic Use of Funds

The capital raised will underpin an ambitious expansion of Horizon’s exploration activities at the Gum Creek Gold Project, located about 90 kilometres north of Sandstone in Western Australia. The company plans to ramp up its drilling program to 80,000 metres in 2026, increasing its rig count to four; including two diamond rigs focused on high-grade underground extensions and up to two reverse circulation rigs targeting shallow oxide deposits beyond the current mine plan.

Additionally, A$5 million will be allocated to completing the feasibility study and advancing permitting processes, while the remaining A$5 million will support general working capital, corporate overheads, and financing costs. This funding positions Horizon to progress confidently towards a final investment decision.

Project and Exploration Highlights

The Gum Creek Project currently hosts a 2.3 million ounce gold resource, with a significant portion classified as indicated resources. Recent drilling campaigns have yielded promising results, including high-grade intercepts such as 4 metres at 11.4 grams per tonne at Kingfisher and exceptional hits at Omega, including 30 metres at 21.1 grams per tonne. These results underscore the potential for both open-pit and underground resource growth along the Gidgee Shear Zone and other priority targets like Swan-Swift and Wedge.

Horizon expects to release an updated mineral resource estimate in the second half of 2026, following the expanded drilling program and feasibility study. Meanwhile, drilling results from ongoing diamond drilling at Kingfisher and Omega are anticipated in late March or April, which could provide further catalysts for the company.

Shareholder Participation and Market Impact

The entitlement offer, which is non-renounceable and not underwritten, allows existing eligible shareholders to maintain their stake by subscribing for one new share for every 20 held. Major shareholder Zeta Resources Limited and Horizon’s directors have committed to fully participate, accounting for approximately 76% of the entitlement offer. This strong insider support signals confidence in the company’s strategy and prospects.

Horizon’s managing director, Scott Williamson, described the capital raising as a pivotal moment, enabling the company to accelerate its path towards expanding and developing Gum Creek. The introduction of institutional investors also broadens the shareholder base, potentially enhancing liquidity and market profile.

Looking Ahead

With the funding secured, Horizon is well-positioned to advance its exploration and development plans through 2026. The upcoming feasibility study and drilling results will be key milestones to watch, potentially reshaping the project’s valuation and investment appeal. The company’s focus on both high-grade underground targets and shallow oxide resources reflects a balanced approach to unlocking value across the asset.