Horseshoe Metals (ASX: HOR) has launched a $1.8 million capital raising program for follow-up exploration at the Horseshoe Lights and Kumarina Projects in Western Australia, which will include geophysical survey work and drilling.
Earlier in the month the Horseshoe Lights Project delivered a 40% increase in the high grade copper resource, and now hosts a resource of 12.85 million tonnes at 1.00% copper, and 0.1g/t gold for 128,600 tonnes of contained copper and 36,000 gold ounces.
The capital raising comprises a share placement of 7.857 million shares at $0.07 to raise $550,000, with an additional 2.143 million shares at the same price to raise an additional $150,000 to one or more entities associated with director Michael Fotios - subject to shareholder approval.
A one-for-five non-renounceable rights issue will also be offered to existing shareholders to raise an additional $1.173 million.
Horseshoe Metals said that negotiations are ongoing with a number of parties/major shareholders about possible participation as sub-underwriters.
The company's projects cover around 300 square kilometres in the highly prospective Peak Hill Mineral Field, located north of Meekatharra in Western Australia.
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