Barton Gold Ltd (ASX: BGD) has raised $25.5 million in new capital from institutional investors, which it says will drive growth programs on a number of fronts.
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Shares holding up
The South Australia-focused gold project developer said in a statement to the ASX that it had raised the new capital at 85 cents per share.
The company's shares briefly traded higher at 94 cents following the news before settling back to be steady at 88 cents.
The first growth project the company will be looking at is an updated mineral resource and conversion of resources to reserves at the company's Challenger gold project – an historic open-cut and underground mine.
The company said it would also be working on a definitive feasibility study to inform a final investment decision on the project, which includes a processing mill.
Secondly, the company will be working towards a mineral resource update and conversion to reserves at the Tunkillia gold project, where a prefeasibility study will also be done.
And finally, the company will do infill and extension drilling and metallurgical test work at its Tolmer silver prospect, which was discovered in 2025 with an intersection of 6m at 4747 grams per tonne of silver at a depth of 46 metres.
Strongly supported
Barton said the capital raise was supported by existing institutional investors Franklin Templeton, Aegis Financial, IXIOS, and MERK, and closed significantly oversubscribed by other Australian, Hong Kong, and North American funds.
Barton Gold Managing Director Alexander Scanlon said:
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. 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. 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 working on a dual hub and spoke mining and processing strategy, including plans to reinstate the Challenger operations and develop Tunkillia with a second new mill.
The company added:
Barton is also focused on its emerging silver portfolio as a potentially significant contributor to this regional strategy, with upgrade programs underway for Tunkillia's silver mineralisation alongside exploration at Tolmer.
Barton Gold is valued at $210.9 million.
