Highlights:
- Successful completion of A$15.0 million placement which was strongly supported by new and existing shareholders, including a number of domestic and offshore institutions.
- Emerald Resources NL, the Company’s major shareholder, and Directors of the Company have subscribed for approximately A$3.1 million and A$105,000 respectively, under the Placement, which is subject to shareholder approval to be sought at an upcoming General Meeting.
- Proceeds to be primarily used to accelerate and expand high-impact exploration at the Company’s Southern Cross Gold Project in Western Australia.
- RC drilling will increase by around 50% and a diamond drill rig will be added to the fleet. Drilling will focus on extending advanced high-grade targets across the +4km Hopes Hill trend including Hopes Hill Central, Hopes Hill North, Hopes Hill South and Irene Betty.
Golden Horse Minerals Limited (ASX: GHM) (Golden Horse or Company) is pleased to announce that it has received firm commitments for a placement of 37.5 million new CHESS Depositary Interests (New CDIs) (underpinned by 37.5 million new fully paid common shares of the Company) at an issue price of A$0.40 per New CDI (Placement Securities) to raise A$15.0 million (before costs) (Placement).
Euroz Hartleys Limited and Canaccord Genuity (Australia) Limited acted as Joint Lead Managers to the Placement.
Managing Director and CEO, Nicholas Anderson, commented:
“Both the strength of conviction and quality of the investors that ponied up in this capital raising is a testament to the significance of our Southern Cross Project, the team and validation of our forward strategy.
“With a strengthened balance sheet and a busy upcoming program at Southern Cross we are very well placed to drive value through the drill bit which is our key focus. We are also continuing negotiations to secure outright ownership of the Redbank Copper Project and will keep shareholders informed as we progress this potential acquisition.
“Our current RC drill program will continue to focus on Hopes Hill Main pit area and the surrounding Hopes Hill extensions, however with the new funds this work will significantly increase with an extra diamond drill and increased RC drill time.
“We are appreciative to have received support from the Western Australian Government for the recent EIS funding for our Hopes Hill Project. This funding is a strong endorsement of the prospectivity of our Project. We thank the Western Australian Government for their continued support of exploration companies and we look forward to unlocking further value from this exciting project.
“I’d like to take this opportunity to thank our shareholders for their continued support and welcome our new shareholders.”
The Placement, which was strongly supported by a range of institutional, sophisticated and professional investors, will be primarily used to accelerate reverse circulation (RC) and diamond drilling at Hopes Hill and the wider 64km Hopes Hill trend, for RC drilling at regional targets across the Southern Cross Gold Project as well as regional target definition, including geochemistry and geological surveys, costs associated with the potential acquisition of Redbank Copper Project from NT Minerals Limited (ASX:NTM) (NT Minerals) and for general working capital purposes.
As noted above, the Company is currently engaged in due diligence and advanced discussions with NT Minerals regarding the potential acquisition of the Redbank Copper Project, to replace the Company’s existing earn-in arrangement for proposed consideration totalling A$3.0 million (in cash and CDIs) (Potential Acquisition). No binding agreement has been signed in respect to the Potential Acquisition and the Placement is not conditional on the Potential Acquisition proceeding. In the event the Potential Acquisition does not proceed, the funds raised will be allocated to progressing the current earn-in arrangement or working considerations.
Placement Details
The Placement was conducted at an issue price of A$0.40, which represents a:
- ~3.4% discount to the 15-day volume weighted average price of A$0.414; and
- ~16.7% discount to the last close price on the ASX of A$0.48 on Wednesday, 28 May 2025.
The Placement comprises two tranches:
- Tranche 1 to raise A$6.9 million via the issue of approximately 17.2 million Placement Securities under the Company’s existing ASX Listing Rule 7.1 placement capacity (Tranche 1). It is anticipated that settlement of the Tranche 1 Placement Securities will occur on Tuesday, 10 June 2025.
- Tranche 2 to raise A$8.1 million via the issue of approximately 20.3 million Placement Securities (Tranche 2). Tranche 2 includes 262,500 Placement Securities (A$105,000) to be issued to Directors of the Company and 7,648,395 Placement Securities (approximately A$3.1 million) to be issued to Golden Horse’s largest shareholder, Emerald Resources NL (Emerald), which will be issued subject to shareholder approval at an upcoming general meeting of shareholders expected to be held in July 2025
Contact details:
David Tasker
Chapter One Advisors
T: +61 433 112 936
E: [email protected]