Horizon Gold (ASX:HRN) announced a $30.2 million equity raising to accelerate exploration and development at its flagship Gum Creek Gold Project in Western Australia.
The capital injection is structured via a $20 million placement to institutional and high-net-worth investors, alongside a 1-for-20 non-renounceable entitlement offer aimed at raising an additional $10.2 million.
Both components are priced at $1.20 per share.
The raising is heavily backed by major shareholder Zeta Resources and company directors, who have committed to taking up approximately $7.7 million of the entitlement offer.
The proceeds are primarily earmarked for a 80,000-metre resource expansion and exploration campaign.
Horizon plans to double its rig count to four, deploying two diamond rigs for underground extensions and two RC rigs to test shallow oxide targets beyond the current mine plan.
Beyond drilling, $5 million will be allocated to finalising the project’s feasibility study and permitting processes, while the remaining $5 million will cover working capital and corporate overheads.
Investors can expect a steady stream of news flow, with diamond drilling results from the Kingfisher and Omega prospects due in late March or April, followed by an updated mineral resource estimate in the second half of the year.
The upcoming drilling phase will also target high-grade zones at Swan-Swift and Wedge, reinforcing the company's pathway toward production.
At the time of reporting, Horizon Gold's share price was $1.35.