The All Ordinaries Index (ASX: XAO) is up 0.1% on Tuesday, but this ASX gold stock is leaving those gains in the dust.
The fast-rising company in question is Aussie gold explorer Barton Gold Holdings Ltd (ASX: BGD).
Barton Gold shares closed on Thursday trading for 67.5 cents before entering a trading halt on Friday. In late morning trade today, shares are changing hands for 75 cents apiece, up 11.1%.
That sees the share price up a blistering 200% in 2025.
Or enough to have turned a $8,000 investment at market open on 2 January into $24,000 today.
Boom!
Here's what's catching ASX investor interest today.
ASX gold stock soars on capital raise
The Barton Gold share price is taking off after the ASX gold stock announced that it has received firm commitments to raise $3 million via a share placement. No brokerage, costs, or fees were incurred in the capital raising.
At 70 cents per share, the placement price is 3.7% above the closing price last Thursday, prior to the trading halt. Following settlement, the miner will have an estimated $9 million cash balance.
The ASX gold stock will use the new funding to accelerate its JORC Resources upgrade drilling at its Tunkillia project, located in South Australia.
Barton Gold said the upgrade drilling of its Stages 1 and 2 'Starter Pits' will support future conversion to JORC Ore Reserves.
According to the release, during the first 27 months of production, the two Starter Pits are modelled to produce a combined 365,000 ounces of gold and 923,000 ounces of silver. That's expected to generate some $956 million. Management noted this will pay back Tunkillia's estimated initial $399 million capital cost two to three times over.
What did management say?
Commenting on the new funding boosting the ASX gold stock today, Barton Gold managing director Alexander Scanlon said, "We are honoured to have received such strong interest in this placement."
Scanlon added:
Over the past four years, since our June 2021 IPO, Barton has issued less than $10 million in new equity, with minimal shareholder dilution. We are pleased to welcome several new high-quality investors, with support from some of our largest long-term holders…
With $9 million cash on hand after this placement, and a $12 million track record of continuing asset monetisation initiatives, Barton is very well capitalised to deliver key high-value project milestones during the coming year.
The ASX gold stock expects to start drilling in September.
