Barton Gold Raises $25.5m to Fund Hub-and-Spoke Development Strategy across South Australian Projects

Barton Gold (ASX: BGD) (OTCQB: BGDFF) has received binding commitments for a $25.5 million share placement to fund the commercialisation of its dual hub-and-spoke strategy at projects in South Australia’s central Gawler Craton.

The company will issue up to 30 million new shares priced at $0.85 each to global institutional investors, representing a 3.4% discount to the last traded price of $0.88 per share and a 7.5% discount to the 10-day volume weighted average price of $0.919.

The new shares will result in only modest equity dilution of 11.1%, preserving value for Barton shareholders.

Supported by existing institutional investors Franklin Templeton, Aegis Financial, IXIOS and MERK, the raising closed significantly oversubscribed by other Australian, Hong Kong, and North American funds.

Canaccord Genuity (Australia) and MST Financial Services acted as lead managers and bookrunners in conjunction supported by Barton’s internal equity capital markets initiatives, with Barton estimating costs at below 2.5%.

Key Value-Add Milestones

Barton will use proceeds from the placement to complete key value-add milestones at the Challenger gold project.

These will include mineral resource updates, conversion to ore reserves and a definitive feasibility study to inform a final investment decision for the restart of operations leveraging the Central Gawler Mill.

Additionally, Barton will be looking to complete a pre-feasibility study and mining lease application at the nearby Tunkillia project.

The company will also apply some of the funds to 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.

Pursuing the Company’s Vision

“We are honoured to have the support of our institutional partners as we pursue our vision to build South Australia’s largest independent gold producer,” managing director Alexander Scanlon said.

“We are now fully funded to deliver several key milestones that will underpin our commercial pathway as well as discussions for future low-dilution funding solutions,” he said.

“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.”

“With over $30 million cash and our own strategic diesel reserves, we are now very well-positioned to deliver material project and shareholder value during the next 18 months.”