Barton Gold Holdings (ASX:BGD) has received binding commitments to raise $25.5 million to support ongoing commercialisation programs and emerging silver exploration work.
The placement will see the issuance of 30 million new shares at $0.85 per share, with commitments from existing institutional investors — including Franklin Resources (NYSE:BEN), Aegis Financial, Ixios Asset Management, and Merk Investments — taking the majority of the new shares.
CEO Alexander Scanlon says the placement supports Barton’s goal of building South Australia’s “largest independent gold producer”.
“We are now fully funded to deliver several key milestones that will underpin both our commercial pathway and discussions for a wide range of available future low-dilution funding solutions,” Scanlon says.
“Barton has worked diligently during 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 reserve, Barton is very well positioned to deliver material project and shareholder value during the next 18 months.”
Barton is focused on the commercialisation of its hub-and-spoke strategy in South Australia’s Central Gawler Craton, with plans to reinstate the Central Gawler Mill and Challenger Gold Project operations, as well as develop the Tunkillia Gold Project with a new mill.
The company is also looking to grow its emerging silver portfolio as part of its regional strategy. Programs are underway for Tunkillia’s silver mineralisation as well as exploration work at Tolmer, a new ‘high-grade’ silver discovery located between Challenger and Tunkillia.
Canaccord Genuity and MST Financial Services acted as lead managers and bookrunners for the placement, alongside Barton’s internal equity capital markets initiatives.
Barton Gold is an Australian gold developer targeting future gold production, brownfield mines, and full ownership of the region’s only gold mill in Gawler Craton.
Write to Amy Rotman at Mining.com.au
Images: Barton Gold
