Horizon secures up to $6m in funding

Horizon Minerals has executed a $4 million loan facility with a German investment group, while also announcing a share placement to raise $2 million to fund the development of its Boorara gold project in Western Australia.

Horizon said it would use the $6 million total to accelerate drilling programs, scheduled for June, through to first gold production at Boorara planned for the September quarter.

The company has executed a capital facility with Sparta AG, an entity associated with DELPHI Unternehmensberatung AG, with an interest rate of 20 per cent and repayments due in March next year.

Kamara Group provided debt advisory services for the loan.

In addition, Horizon will issue 25 million shares at 8 cents per share, with Jeff Capital Advisors LLC and Bell Potter Securities acting as joint lead managers to the placement.

Horizon Minerals managing director Jonathan Price said the company was now fully funded to bring Boorara into production.

“A balance of debt and equity in these extremely volatile market conditions minimises dilution to our shareholders while enabling the company to bring Boorara into production rapidly to capitalise on the high Australian dollar gold price, accelerate a resource growth and exploration drilling program and complete the feasibility study in 2020,” he said.

Horizon said the study would evaluate all advanced open cut and underground development projects to deliver a four to five-year mine plan.

The company previously stated ore would be processed through Golden Mile Milling’s mill in Lakewood, close to the Boorara project near Kalgoorlie.

Horizon shares were up 2.74 per cent to 7.5 cents at 3:30pm AEDT.