Horizon Gold secures funds for WA project

Horizon Gold has secured $5 million in funding from its major shareholder to progress a drilling program at the company’s Gum Creek project in the Mid West.

It forms part of a $7 million, one-for-four rights issue priced at 35 cents per share.

Horizon said a recent geological review has confirmed a significant exploration opportunity and the potential development of Gum Creek.

More than 40 drill targets have been identified across the project's 620 square kilometres.

Horizon will use the funds raised to undertake multiple drilling programs on both greenfields and brownfields targets, as well as further assess resource development opportunities at Gum Creek.

It plans to start a 15,000-metre drilling program at the top 10 targets early in the June quarter, followed by a further 25,000 metres of drilling across selected targets.

Horizon’s major shareholder, Zeta Resources, would take up its full entitlements under the offer ($5 million). About 19.95 million shares will be issued to eligible shareholders on April 16.

Horizon was trading 16.5 per cent higher at 3:05pm AEDT to 46 cents per share.