I posed a question to AI re the strategy behind the need and...

I posed a question to AI re the strategy behind the need and purpose for the two tranches?
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Horizon Minerals Limited (ASX:HRZ) structured its A$30 million capital raise into two tranches for strategic reasons:

1. Tranche 1 (Unconditional Placement): This tranche raised A$11.8 million by issuing 218,577,298 shares under ASX Listing Rule 7.1 and 56,273,753 shares under ASX Listing Rule 7.1A. Since this tranche utilized existing placement capacity, it did not require shareholder approval, allowing Horizon to access funds immediately.

2. Tranche 2 (Conditional Placement): This tranche aimed to raise A$18.2 million through the issue of 422,823,368 shares, subject to shareholder approval at a General Meeting in July 2025. This step ensures compliance and gives shareholders a say in the capital raise.

Why Two Tranches?

• Speed & Flexibility: The first tranche provided quick access to funds without waiting for shareholder approval.

• Investor Engagement: The second tranche allowed new institutional investors to participate while ensuring existing shareholders had a voice.

• Strategic Funding Allocation: The funds will support resource extension drilling, engineering studies for the Black Swan processing plant, and working capital ahead of expected cash flow from mining operations