Barton Gold (ASX: BGD) will list on the ASX this morning after receiving more than $15 million in subscriptions within five days of launching the IPO.
The company issued 60 million shares to new holders at $0.25 each under the offer.
It will begin trading with $16.1 million of offer proceeds and existing cash reserves.
Within the first two years after listing, Barton has allocated almost $11.9 million to fund exploration across its assets.
Large-scale gold assets
Barton is bringing to market its two-large scale gold projects (Tarcoola and Tunkilla) and the mothballed Challenger mine and mill in South Australia’s Gawler Craton.
The company has been exploring Tarcoola and Tunkilla since it acquired the projects in 2019.
Tarcoola comprises 1,202 square kilometres of tenements in the region and hosts numerous historic high-grade gold workings.
The project is located on two exploration licences and one mining lease within the Tarcoola goldfield, which was the state’s major hard rock gold producer during the early 1900s.
Between the early 1900s and 1955, the workings across the gold field generated about 77,000 ounces of gold at 37.5 grams per tonne.
Barton has completed a review of historic data along with high-resolution aeromagnetic surveys, geophysical reinterpretation and 2D seismic analysis and drilling.
As a result, the company has defined several priority targets across the project for follow-up exploration.
The Tunkillia project encompasses 1,362sq km and has a JORC resource estimate of 26.1 million tonnes at 1.15g/t gold for 965,000oz.
This resource is based on the 223 Deposit.
Barton’s strategy is to systematically test priority targets across both projects with the goal of new discoveries and growing resources.
“The company’s ultimate objective is to complete technical studies and bring the projects into profitable, long-term operations to create shareholder value and reinvigorate gold production in the central Gawler Craton,” Barton non-executive chairman Mark Connelly stated.
Barton also owns the Challenger mine and mill about 130km northwest of Tarcoola.
The Challenger mine produced 1.2Moz of gold while in operation between 2002 and 2018.
With the mill’s proximity to Tarcoola, Barton noted it will make gold exploration at the project a priority.