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Horizon Minerals now debt-free after early repayment of $4 million loan

Last updated: 11:10 18 Jan 2021 AEDT, First published: 11:04 18 Jan 2021 AEDT

Horizon Minerals Ltd - Horizon Minerals becomes debt free after repaying $4 million loan
Horizon has saved around $171,000 on interest following the early repayment of the loan

Horizon Minerals Ltd (ASX:HRZ) is debt-free upon the early repayment of a Sparta AG $4 million loan facility with the company paying approximately $4.6 million including interest.

Horizon entered the facility with Sparta in March 2020 at a period when the COVID-19 pandemic was first impacting global debt and equity markets.

The early repayment of the loan has resulted in a saving on the interest of around $171,000 for the company.

Securing the funding enabled the company to complete the trial mining campaign at Boorara to begin in May 2020, capitalising on the strong Australian dollar gold price and providing important grade reconciliation information for the consolidated feasibility study.

Following the successful completion of the trial mining campaign at Boorara in late 2020 and $16.1 million capital raising in August 2020, the company is in a strong financial position to make the early loan repayment and fund the current consolidated feasibility study and the 70,000-metre drilling campaign, which are both due for completion in 2021.

“Loan facility served great purpose”

Horizon managing director Jon Price said: “The loan facility with Sparta served a great purpose in delivering timely funding for the successful and profitable trial mining at Boorara during a time when it was difficult to raise capital.

“We are now in a strong financial position to make the early repayment of the loan, complete the consolidated feasibility study and continue with our extensive drilling program, returning the company to a debt-free position.”

Third campaign generates $3.6 million

Last month, the company generated $3.6 million in net cash flow after completing its third toll milling campaign from trial mining at Boorara Gold Project, 10 kilometres east of Kalgoorlie-Boulder in the WA Goldfields.

Gold produced totalled 2,491 ounces at a calculated recovery of 95%, well above the modelled recovery of 91%, and total revenue received from gold sales was $6.1 million at an average gold price of $2,466 per ounce.

This campaign generated $3.6 million net in cash after haulage and toll milling expenditure with all mining-related costs expended in the September quarter of 2020.

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