$3.5m Placement to Expedite Stage 1 Resources Growth
Adelaide, June 19, 2023 AEST (ABN Newswire) - Barton Gold Holdings Limited (
ASX:BGD) is pleased to announce that the Company has secured binding commitments to raise $3.5 million (before costs) from existing and new Australian, European and North American institutional and sophisticated investors.
HIGHLIGHTS
- $3.5 million binding commitments accepted for placement at $0.25 per share (Placement), led by existing and new Australian, European and North American institutional investors
- Issue price of $0.25 represents a 5.66% discount to last trade ($0.265) on 14 June 2023
- $1 million Share Purchase Plan (SPP) to be undertaken shortly on same terms as Placement
- $10+ million estimated pro-forma 30 June 2023 cash balance after the Placement, before receipt of proceeds from planned SPP or Barton's ongoing mill concentrates processing
- Placement proceeds will be used to accelerate 'Stage 1' Resources definition, with further Mineral Resources updates targeted for both Tarcoola and Tunkillia before the end of 2023
Commenting on the Placement, Barton MD Alex Scanlon said:
"We are very pleased to share this news with Barton shareholders. Following our April 2023 Mineral Resources upgrade to 1.3Moz 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.
"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 1' 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."
Oversubscribed Private Placement
Barton has accepted binding commitments to raise $3.5 million (before costs) as part of a strategic initiative to welcome new institutional investors to the Company and accelerate its development strategy.
After Barton's recent Mineral Resources upgrade during April 2023, the Company received expressions of interest from several institutional investors familiar with Barton's assets, strategy, and steady progress.
The Company therefore determined to open a small capital raising on an invitation only basis, focused on a short list of high quality institutional and sophisticated investors. Each of the investors invited to participate in the Placement is highly reputable and will help strengthen the Company's market profile.
The funds raised from the Placement and the SPP (see below) will be used to accelerate work programs targeting the identification and delineation of shallow high-grade Mineral Resources at the Tarcoola Gold Project (Tarcoola), with the goal to establish Mineral Resources supporting potential 'Stage 1' operations.
The Company led the institutional component of the Placement, with Cumulus Wealth Pty Ltd acting as Lead Manager and settlement agent. Barton would like to recognise and thank the Cumulus Wealth team for a wellmanaged process.
The Placement is expected to be completed on Friday, 23 June 2023, with quotation and trading of Placement Shares on Monday 26 June 2023.
To view details of the Placement, please visit:
https://abnnewswire.net/lnk/NH49745Q
About Barton Gold Holdings Limited
Barton Gold Holdings Limited (ASX:BGD) (FRA:BGD3) (OTCQB:BGDFF) is an ASX listed Australian gold exploration company with a total attributable ~1.1Moz Au JORC (2012) Mineral Resources endowment (28.74Mt @ 1.2 g/t Au), a pipeline of advanced exploration projects and brownfield mines, and 100% ownership of the only regional gold mill in the central Gawler Craton of South Australia.
| ||
|
