Ann: Trading Halt, page-18

Australia's newest gold producer Horizon Minerals has launched a capital raising to fund drilling and exploration activities at its Western Australian gold projects.

Horizon Minerals has launched a capital raising. Louie Davis

The company – which reached first gold production at its Boorara mine near Kalgoorlie in July – was looking to raise $12 million through a two-tranche placement.

The offer was priced at 14¢ a share, which represented a 24.3 per cent discount to Horizon's last close and a 15.3 per cent discount to the five-day VWAP, according to terms sent to funds.

Bell Potter and Hartleys were joint lead managers on the deal and were calling for bids into the placement by 5pm on Tuesday.

Funds were told the bulk of the money raised would go towards drilling activities, as well as for a definitive feasibility study and working capital.

The $84 million Horizon owns a bunch of gold projects in WA's Kalgoorlie and Coolgardie regions, including the 507,000 ounce Boorara mine, which produced 1050 ounces of gold after a maiden milling campaign last month.