- 01Barton raises $25.9m; oversubscribed; price $0.85.
- 02Funded for Challenger, Tunkillia, Tolmer milestones.
- 03Cash >$30m; aims for low-dilution funding, SA gold growth.
Barton Gold (ASX: BGD) (OTCQB: BGDFF) has completed a $25.9 million share placement to global institutional investors to fund key value-add milestones across its South Australian portfolio.
Supported by existing investors Franklin Templeton, Aegis Financial, IXIOS and MERK, the raising closed significantly oversubscribed.
Barton increased the placement amount from an initial $25.5m to accommodate additional demand from North American investors, boosting the total issued shares to 30.47 million priced at $0.85 each.
The issue price represents a 3.4% discount to Barton’s last traded price of $0.88 and a 7.5% discount to the 10-day volume weighted average price of $0.919.
Fully Funded Milestones
Barton confirmed it was now fully funded to complete a series of milestones at the Challenger gold project.
These will include mineral resource updates, conversion to ore reserves, as well as a definitive feasibility study to inform a final investment decision for the restart of operations leveraging the Central Gawler Mill.
Funds will also be used to complete a pre-feasibility study and mining lease application at the nearby Tunkillia project, along with infill and extension drilling and metallurgical test work at the high-grade Tolmer prospect, discovered in 2025 with an intersection of 6 metres at 4,747 grams per tonne silver from 46m depth.
The milestones are expected to underpin ongoing discussions for potential low dilution funding pathways to develop the projects.
Register Strengthened
Managing director Alexander Scanlon said the placement had strengthened the company’s institutional register and supported its vision to build South Australia’s largest independent gold producer.
“We have worked diligently over the past five years to lay the foundations for large-scale regional gold production, doing so expeditiously and with a focus on minimal dilution,” he said.
“With more than $30m cash at hand and our own strategic diesel reserve, we are very well positioned to deliver material project and shareholder value during the next 18 months.”
Canaccord Genuity (Australia) and MST Financial Services acted as lead managers for the placement, in conjunction with Barton’s equity capital markets initiatives.
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