Barton Gold secures binding commitments to raise $3.5 million

Gold explorer Barton Gold (ASX:BGD) has secured binding commitments to raise $3.5 million from existing and new Australian, European, and North American institutional and sophisticated investors. 

The company says this capital raise is part of a strategic initiative to welcome new institutional investors to Barton Gold and expedite its development strategy. 

Under the placement, Barton plans to issue 14 million shares at $0.25 per share, representing a 5.66% discount to its last trading price of $0.265 on 14 June 2023 and a 10.3% discount to its 10 trading day volume-weighted average price (VWAP) to 14 June 2023. 

Barton initially planned to raise $3 million but due to strong demand for the placement has accepted oversubscriptions for a total value of $3.5 million.

Additionally, Barton is conducting a $1 million Share Purchase Plan (SPP) on the same terms as the placement. The SPP is not underwritten and Barton may raise more or less than $1 million. 

Under the SPP, eligible Barton shareholders with a registered address in Australia or New Zealand and recorded on the company’s share register as of 5:00pm AWST on 16 June 2023 will have the opportunity to apply for up to $30,000 in new SPP shares. 

The SPP offer period is expected to open on 27 June 2023 and close at 5:00pm AWST on 14 July 2023. 

Commenting on the capital raise, Barton Gold Managing Director Alex Scanlon says: “Following our April 2023 Mineral Resources upgrade to 1.3 million ounces, we received enquiries from several institutional investors interested to join Barton’s register. 

The placement reflects a strong endorsement and increasing international awareness of Barton’s unique opportunity to develop large-scale regional gold production on a staged, lower-risk and lower-cost methodology”

The placement reflects a strong endorsement and increasing international awareness of Barton’s unique opportunity to develop large-scale regional gold production on a staged, lower-risk and lower-cost methodology. 

Barton will diligently pursue this goal with a continued focus on cost-efficient exploration, careful treasury management, and further asset monetisation. The placement and SPP proceeds will further boost Barton’s already-strong treasury position and will be used to accelerate definition of potential stage-one resources. 

Importantly, the placement ensures a strong outcome for our shareholders, with favourable terms, modest dilution, and an enhanced international investment profile. This is a valuable step forward for Barton in its ambition to become South Australia’s largest independent gold producer.”

Following the placement, Barton says its estimated pro-forma equity capital will encompass 190,354,326 shares, with an estimated $10+ million pro-forma 30 June 2023 cash balance.

Barton Gold is an ASX-listed Australian gold explorer with a pipeline of advanced exploration projects and brownfield mines. The company wholly owns the only regional gold mill in the central Gawler Craton of South Australia.

Write to Aaliyah Rogan at Mining.com.au

Images: Barton Gold Ltd
Author Image
Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.