You're missing two spacers that need to be between the horn bracket and the battery tray mounting point. They need to be in place on the two bracket bolts. The factory ones are about 1/4 inch in thickness, round and unthreaded. Alternatively, an additional nut could be used in place of the missing spacers.
The spacers will move the horn forward the required amount, and also shorten up the distance of the bolts protruding through the fender towards the tire. If you're not using factory bolts, make sure the ones you're using only protrude as far out as necessary towards the tire.
By reversing the direction of the two bolts, too, and using additional nuts as spacers instead of unthreaded spacers, you would gain the advantage of having the fender cinched independently of the nuts holding the horn on. Might be a disadvantage, though, due to difficulties fitting wrenches.
Use good spacers to protect the tire side of the fender at the mounting point. Over the years I've seen plenty of fenders splitting at those mounting points, which I assume is from nuts being tightened without the proper spacers to distribute the force to the fender.
I'm too lazy to check the diagrams for you, but I believe if you check the drawings in any reputable manual, you'll see there were spacers included from the factory.
Final piece of advice is to make a pattern mudguard of rubber and mount it hanging downwards on the tire side of the fender. There's a type of rubber material that's commonly used by workshops to line countertops, and it works well. Last time I did this I made the pattern from a front wheel interstate mud flap. It should hang down far to have the bottom at or below the lowest point of the swingarm cross-member. The purpose is to keep all the road dirt off, and slinging rocks from striking, the swingarm.
Hobot, I'm kind of surprised at you, I thought you knew these things inside and out.
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