Horizon Minerals Limited: A$6M New Funding Secured for Boorara Gold Mine

Perth, Australia - Horizon Minerals Ltd. (ASX:HRZ) is pleased to advise that it has successfully secured debt and equity funding for a total of $6 million for development of the Boorara Stage 1 gold project and an accelerated resource growth and exploration drilling program.

The funding comprises a $4 million working capital facility for Boorara Stage 1 mine development and a $2 million equity Placement to new and existing institutional and sophisticated investors both in Australia and overseas. This is in addition to the Company's current cash reserve of $2.2 million.

Working Capital Facility details

Formal documentation has been executed with German investment company Sparta AG, an entity associated with DELPHI Unternehmensberatung AG. Sparta has been actively investing in Australian listed resources companies over the past 12 months and we welcome them as a new strategic partner.

The formal documents consist of a Loan Deed including loan facilitation options between Sparta and Horizon and a first-ranking Mining Mortgage over the Boorara Gold Mine between Polymetals (WA) Pty Ltd (a subsidiary of Horizon and the holder of the Boorara tenements) and Sparta.

The Key terms of the Working Capital Facility reflected in the formal documents are as follows:

- Provision of a A$4 million facility secured by a first ranking Mining Mortgage over the Boorara Gold Mine

- Upon registration of the Mining Mortgage at the Department of Mines, the loan may be drawn down as a single borrowing within one month

- Repayment/maturity date is 18 March 2021. Horizon may elect to repay early without penalty

- Interest rate of 20% per annum calculated quarterly and payable on maturity

- Borrower to issue loan facilitation options with a 2.5 year expiry as per below:

o 12 million unlisted options with a strike price of $0.12 (50% premium)

o 12 million unlisted options with a strike price of $0.16 (100% premium)

Funds from the facility will be used as a working capital cash buffer for the development of the initial stage of the Boorara gold mine to effectively manage cash flow from the planned commencement of mining in the June Quarter to first gold production and revenue in the September Quarter 2020 1. Mining during Stage 1 is planned to take place over a period of six months. Ore will be processed through Golden Mile Milling's 1Mtpa Lakewood mill in close proximity (Figure 1*) under an executed toll milling agreement as announced to the ASX on 10 February 2020.

The Boorara Stage 1 Feasibility Study announced to the ASX on 10 February 2020 involves the mining of three starter pits at Boorara over 6 months and processing 159kt grading 1.86g/t Au for 8,700 ounces recovered at a 91.5% metallurgical recovery.

At a current Australian dollar gold price of $2,400/oz, the Boorara Stage 1 Gold project generates approximately $5.4 million net cash after all costs including debt and interest repayment.

Placement details

The Placement consists of 25 million new fully paid ordinary shares to be issued at a price of $0.08 per share to raise a total of $2 million before issue costs utilising the Company's existing placement capacity under Listing Rules 7.1.

The Issue Price represents a:

- 8% premium to the last closing price on 10 March 2020 of $0.074

- 10% discount to the 15 day VWAP of $0.089

New shares issued under the Placement will rank equally with existing ordinary shares on issue.

Jett Capital Advisors LLC and Bell Potter Securities Limited acted as Joint Lead Managers to the Placement.

Kamara Group provided debt advisory services for the working capital loan facility.

Proceeds from the Placement and existing cash reserves will be used for the accelerated reserve conversion and resource growth exploration drilling program which will commence early in the June Quarter 2020. Drilling will comprise reverse circulation and diamond drilling at the core Boorara, Binduli, Rose Hill and Teal gold project areas to be incorporated into the consolidated Feasibility Study due for completion in the December Quarter 2020.

New discovery drilling will also be conducted across the portfolio including the Windanya-Baden Powell, Yarmany, Gunga West and Lakewood prospect areas.

The Company is now fully funded with Board approval expected in coming weeks to:

- Bring Boorara Stage 1 into production for cash generation in 2020 leveraging off the high Australian gold price environment and to prove the grade control for the larger scale development

- Commence the exploration drilling program to grow reserves and resources and continue the search for the next large scale gold discovery in the WA Goldfields

- Complete the consolidated Feasibility Study evaluating all advanced open cut and underground development projects to deliver a robust 4-5 year mine plan and underpinning a standalone processing plant at Boorara

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/20X2VRVJ

About Horizon Minerals Limited:

Horizon Minerals Ltd. (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.

Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.

Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.

Source:

Horizon Minerals Ltd.

Contact:

Jon Price Managing Director Tel: +61-8-9386-9534 E: jon.price@horizonminerals.com.au Michael Vaughan Media Relations - Fivemark Partners Tel: +61-422-602-720 E: michael.vaughan@fivemark.com.au