Barton Gold Holdings has raised $17.5 million through a placement led by Franklin Templeton and a Share Purchase Plan, aiming to commission its Central Gawler Mill by late 2026 and advance the Tunkillia Gold Project.
- Placement of $15 million led by Franklin Templeton at $1.25/share
- Share Purchase Plan targeting $2.5 million at same price
- Funds to accelerate Central Gawler Mill commissioning by end 2026
- Ongoing drilling and feasibility studies at Tunkillia Gold Project
- Pro-forma cash balance estimated at $23 million post-raise
Strategic Capital Raise Backed by Franklin Templeton
Barton Gold Holdings Limited has announced a significant $17.5 million capital raise, comprising a $15 million placement led by Franklin Templeton, one of the world’s largest precious metals funds, alongside a $2.5 million Share Purchase Plan (SPP) offered to existing shareholders. The placement shares are priced at $1.25 each, representing a modest 3.8% discount to the last traded price but a 7.6% premium to the one-month volume weighted average price, reflecting strong investor confidence.
The capital raise is designed to fund key development milestones, notably the commissioning of Barton’s fully permitted Central Gawler Mill (CGM) by the end of 2026. This mill is central to Barton’s regional ‘hub and spoke’ strategy in South Australia’s prolific Gawler Craton, where the company holds substantial JORC-compliant mineral resources.
Advancing Production and Development at Tunkillia
Alongside the mill commissioning, Barton is intensifying exploration and development at its Tunkillia Gold Project. The company has commenced an extensive 18,000-metre reverse circulation drilling campaign targeting the ‘Starter Pits,’ which are modelled to generate approximately $1.3 billion in operating free cash flow over the first 2.5 years. This drilling aims to upgrade ore reserves, complete a Pre-Feasibility Study (PFS), and support a mining lease application by the end of 2026.
These initiatives are complemented by ongoing exploration successes, including high-grade silver and gold discoveries at the Tolmer prospect and the acquisition of the Wudinna Gold Project, which adds further mineral resources and exploration upside to Barton’s portfolio.
Financial Position and Market Implications
Following the placement and SPP, Barton expects to hold a pro-forma cash balance of approximately $23 million, providing a robust financial platform to execute its growth strategy with minimal dilution to existing shareholders. The company’s shares have also recently been included in the ASX All Ordinaries Index, reflecting its growing market presence.
Managing Director Alexander Scanlon emphasised the company’s disciplined approach to capital management over the past five years, highlighting the opportunity to leverage existing infrastructure amid favourable gold prices. The backing of Franklin Templeton is seen as a strong endorsement of Barton’s transition from explorer to producer, with a clear pathway to self-funded growth.
Looking Ahead
Barton’s near-term focus will be on delivering the Definitive Feasibility Study for the Central Gawler Mill and advancing the Tunkillia project towards production readiness. The success of these programs will be critical in re-rating the company’s equity profile and unlocking shareholder value in a competitive gold market.
Bottom Line?
Barton Gold’s fresh capital injection sets the stage for a pivotal year as it moves closer to gold production and market re-rating.
Questions in the middle?
- Will Barton meet its end-2026 commissioning target for the Central Gawler Mill?
- How will drilling results at Tunkillia impact the scale and timing of production?
- What are the risks around regulatory approvals for the mining lease application?