Buxton Resources has locked in over A$1.1 million from a UK-led placement to fund its upcoming exploration push at the Madman copper-gold project and other assets.
- A$1.136 million raised via placement at A$0.035 per share
- Strong backing from UK sophisticated investors including cornerstone investor
- Funds earmarked for exploration and working capital
- Placement matches terms of recent shareholder-approved raise
- Settlement expected 6 July, shares allotted 8 July
UK Cornerstone Investor Drives New Capital Injection
Buxton Resources (ASX:BUX) has secured firm commitments to raise approximately A$1.136 million through a placement of 32.5 million shares at 3.5 cents each. The raise attracted strong interest from UK sophisticated investors, including a notable UK cornerstone backer, broadening the company’s shareholder base beyond Australia.
The placement terms mirror those of a recent shareholder-approved raise from mid-June, signalling continuity in Buxton’s capital strategy. SI Capital (UK) led the placement, earning a 6% fee on proceeds excluding the cornerstone investor’s commitment.
Strengthening the Balance Sheet Ahead of Drilling
Chair Gervaise Heddle emphasised that the fresh capital bolsters Buxton’s financial position as it prepares for imminent drilling at the Madman target in Western Australia. This project has been a focal point following the company’s earlier milestone of securing all necessary permits and funding to commence drilling on a Havieron-style magnetic anomaly Madman drilling program fully permitted.
The funds will support exploration activities across Buxton’s portfolio and provide general working capital, allowing the company to maintain momentum on multiple fronts.
Settlement and Shareholder Impact
The placement is scheduled to settle on 6 July, with new shares expected to be allotted two days later. These shares will rank equally with existing ordinary shares, diluting current shareholders but also underpinning the company’s exploration ambitions.
Buxton’s recent capital raising history includes a A$3 million placement earlier this year at the same 3.5 cent price point, which was aimed at accelerating drilling programs across key Australian projects Buxton Resources Secures A$3M. This latest raise complements that effort by reinforcing the company’s war chest ahead of what could be a pivotal drilling season.
Bottom Line?
Buxton’s UK-backed placement injects fresh capital just as it gears up for drilling, setting the stage for a critical exploration phase.
Questions in the middle?
- How will the expanded UK investor base influence Buxton’s strategic direction?
- What specific exploration targets beyond Madman will benefit from the new funds?
- Could further placements be needed if drilling results prompt accelerated activity?