Barton Gold Holdings Limited has launched a $2.5 million Share Purchase Plan alongside a $15 million placement, offering eligible shareholders a chance to invest at $1.25 per share to support critical project development.
- SPP to raise up to AUD 2.5 million at $1.25 per share
- Concurrent $15 million placement to institutional investors
- Funds targeted for Central Gawler Mill and Tunkillia Gold Project
- Eligible shareholders in Australia and New Zealand can apply up to $30,000
- SPP non-underwritten with potential scale-back of applications
Capital Raising Strategy
Barton Gold Holdings Limited (ASX, BGD) has announced a strategic capital raising initiative comprising a $15 million placement to institutional investors and a Share Purchase Plan (SPP) aiming to raise up to $2.5 million. The SPP offers eligible shareholders in Australia and New Zealand the opportunity to purchase shares at $1.25 each, the same price as the placement, representing a modest 3.8% discount to the last traded price prior to the announcement.
This dual approach reflects Barton Gold’s intent to strengthen its balance sheet while providing existing shareholders a cost-effective way to increase their holdings without brokerage fees. The SPP is capped at $30,000 per shareholder and is non-underwritten, meaning the final amount raised may vary depending on shareholder participation.
Use of Proceeds and Project Focus
Proceeds from both the placement and the SPP will be directed towards advancing key development milestones. These include technical feasibility studies for commissioning the Central Gawler Mill’s initial operations, upgrading drilling programs at the Tunkillia Gold Project to convert mineral resources into ore reserves, and completing a pre-feasibility study alongside mining lease applications by the end of 2026.
These projects are central to Barton Gold’s strategy to ramp up production, with the Central Gawler Mill being the region’s only gold processing facility and Tunkillia holding significant gold and silver resources. The capital injection is expected to accelerate progress towards targeted production of 150,000 ounces of gold per annum.
Shareholder Participation and Market Implications
Eligible shareholders registered as of 13 October 2025 with addresses in Australia or New Zealand are invited to participate, with applications accepted from 23 October until 6 November 2025. Directors have indicated their intention to participate, subject to ensuring public shareholder demand is not displaced.
While the SPP is not underwritten, Barton Gold reserves the right to scale back applications if oversubscribed, a scenario not unfamiliar to the company given its heavily oversubscribed SPP in April 2024. The share price premium to the one-month VWAP suggests confidence in the company’s growth prospects, though investors should be mindful of market price fluctuations between application and issue dates.
Regulatory and Geographic Restrictions
The offer excludes shareholders in the United States and those acting on behalf of US persons, reflecting compliance with US securities laws. The SPP is also not available to shareholders outside Australia and New Zealand, limiting participation to the company’s core shareholder base.
Shares issued under the SPP will rank equally with existing shares and are expected to commence trading on the ASX on 13 November 2025, with allotments finalized the day before.
Bottom Line?
Barton Gold’s latest capital raise underscores its commitment to advancing key projects, but the non-underwritten SPP and potential scale-back inject an element of uncertainty for shareholders.
Questions in the middle?
- Will the SPP be fully subscribed or subject to scale-back given its non-underwritten status?
- How will the additional capital specifically accelerate the Central Gawler Mill commissioning timeline?
- What impact might market price volatility have on shareholder participation and sentiment during the SPP period?