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Horse
that
appears
on
the
moon
(4)
Horse that appears on the moon (4)
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The whole clue is the definition (& lit or double definition).
How the clue works
The definition is Horse — well, a female one — and separately, something that appears on the moon. A mare is both a female horse and one of those dark plains you can see on the lunar surface, so you've got a double definition doing the work here.