Horizon Gold sees a decline in shares by as much as 4.5% to A$0.315.

This is their lowest level recorded since August 23.

The company announced a 1-for-5 renounceable entitlement issue, aimed to raise A$7.5 million.

The issue price, established at A$0.30 per share, represents a 9.1% discount to the stock’s last closing price on September 20.

Horizon Gold plans to direct the funds acquired from this capital raise towards the Gum Creek Gold Project scoping study in Western Australia.

The resources drilling is planned to begin in Q4 of 2023.

Additional plans include repaying accumulated debt, according to the company.

Despite the recent dip, Horizon Gold’s stock is still up 6.4% this year, as of the last close.

Horizon Gold (ASX:HRN) is involved in the exploration and development of gold properties in Australia.