Barton Gold (ASX: BGD) raises A$17.5m to fast-track production at South Australia’s only regional gold mill

Barton Gold Holdings Limited (ASX: BGD, OTCQB: BGDFF, FSE: BGD3), the South Australia-based gold developer with a dominant regional footprint in the Gawler Craton, has secured $17.5 million in fresh capital to accelerate its path toward production. The raise, led by Franklin Templeton, includes a $15 million institutional placement and a $2.5 million Share Purchase Plan (SPP), both priced at AUD 1.25 per share.

This capital raise marks a pivotal inflection point in Barton Gold’s strategy as it transitions from resource growth and feasibility studies to near-term development and commissioning. The funds will be used to restart operations at its fully permitted Central Gawler Mill (CGM) and to progress the Tunkillia Gold Project toward a mining lease application and pre-feasibility study completion by the end of calendar 2026. Barton Gold’s updated pro-forma cash balance post-raise is expected to be around AUD 23 million, with an estimated total share count of approximately 240 million fully paid ordinary shares.

How will Barton Gold deploy the $17.5 million to strengthen its dual-platform production strategy?

The fresh capital infusion is strategically targeted toward commissioning “Stage 1” operations at the Central Gawler Mill and advancing “Stage 2” development at the Tunkillia Gold Project. Barton Gold’s hub-and-spoke production model, which revolves around the CGM as a central processing asset, is designed to deliver up to 150,000 ounces of annual gold production in the coming years.

For Stage 1, the CGM is already fully permitted and hosts 313,000 ounces in JORC-compliant Mineral Resources, including 194,000 ounces at an average grade of 3.23 grams per tonne within existing open pit and underground development. The mill’s refurbishment is estimated to cost AUD 26 million, with a ±30% contingency, and is targeted for commissioning by the end of 2026. Initial production will begin with reprocessing tailings at CGM’s TSF1 facility, which contains coarse, higher-grade material grading between 0.7–1.0g/t gold. Metallurgical testing indicates recoveries as high as 80% under high-efficiency grinding configurations.

In parallel, the Tunkillia Gold Project continues to advance toward a pre-feasibility study, supported by approximately 18,000 metres of resource upgrade drilling underway on the “Starter Pits.” These pits are expected to generate AUD 1.3 billion in operating free cash flow over the first 2.5 years alone. According to Barton’s May 2025 scoping study, the Starter Pits will produce 365,000 ounces of gold and 923,000 ounces of silver, paying back development capital roughly three times within that period.

Why is Franklin Templeton’s lead investment seen as a major vote of confidence in Barton Gold’s strategy?

Franklin Templeton’s cornerstone commitment of AUD 11.25 million reflects growing institutional conviction in Barton Gold’s transition to a near-term producer. The global asset manager’s participation grants it an approximate 3.8% stake in Barton’s expanded share capital post-raise. This institutional endorsement aligns with Barton’s strategy of pursuing scalable development while minimizing equity dilution, a hallmark of its post-IPO capital discipline.

Managing Director Alexander Scanlon noted that the company has spent the last five years laying a low-dilution foundation for large-scale production in South Australia. The current raise, he said, is an opportunity to leverage high gold prices and Barton’s unique ownership of the only regional gold mill in the Gawler Craton to deliver shareholder value at scale.

Institutional and high-net-worth investor participation has also increased steadily, with Barton reporting that more than 63% of its top 50 shareholders fall into this category. The company has also recently become a constituent of the S&P/ASX All Ordinaries Index, further boosting its visibility among domestic and international fund managers.

What are the terms of the placement and SPP, and how much shareholder dilution will occur?

The $15 million placement will involve the issuance of 12 million new shares at AUD 1.25, while the $2.5 million SPP, targeting eligible Australian and New Zealand retail shareholders, will add a further two million shares. The total new issuance represents a modest 5% dilution, and Barton expects total costs for both tranches to remain below 1.5% of total proceeds.

Importantly, the offer price represents only a 3.8% discount to Barton’s last traded price of AUD 1.30 and a 7.6% premium to its 20-day volume-weighted average price of AUD 1.16. This pricing structure suggests that Barton retained strong bargaining power during negotiations, underscoring investor appetite for high-quality Australian gold stories with near-term catalysts.

The SPP opens on October 23 and will close on November 6, 2025, with allocation and quotation of new shares expected by mid-November. Barton’s Directors, subject to non-displacement of public demand, have indicated their intention to participate in the SPP as well.

What operational milestones and exploration initiatives are expected in the lead-up to 2026 commissioning?

Aside from mill refurbishment and resource drilling at Tunkillia, Barton Gold has an extensive calendar of catalysts ahead. The company has recently completed metallurgical test work at the newly acquired Wudinna Gold Project, showing potential for 97–99% gold recoveries through gravity and CIL leaching. The project, which hosts 279,000 ounces in JORC resources, could eventually supply high-grade concentrate to both the CGM and future Tunkillia mill, thanks to its proximity to infrastructure and regional highways.

Barton is also advancing exploration at the Tarcoola project’s Tolmer prospect, which returned assays of up to 83.6 g/t gold and 17,600 g/t silver in recent drilling. A 595-metre diamond drilling campaign is underway to define structural controls and unlock the broader mineral potential across the 1.5-kilometre Tolmer corridor.

Additionally, the company continues to evaluate regional M&A opportunities and toll treatment partnerships, further reinforcing its position as the emerging gold consolidator in South Australia’s Gawler Craton.

How are investors reacting to Barton’s capital raise and transition to production status?

Despite a slight pullback in share price to AUD 1.29 after the announcement, Barton Gold continues to trade near all-time highs. Over the past 12 months, the stock has surged by more than 416%, reflecting sustained investor optimism around its dual-platform production model and strong institutional support. Barton’s low enterprise value relative to its projected free cash flows and resource base is seen as a compelling re-rating opportunity as the company nears commissioning.

Sentiment remains overwhelmingly positive across gold-focused retail forums, with many anticipating a formal reclassification from developer to producer by late 2026. Several analysts and fund managers have also pointed to Barton’s capital efficiency, zero debt balance sheet, and secure access to infrastructure as critical de-risking factors that differentiate it from junior peers in Australia’s gold space.

As Barton continues to deliver on its development schedule, the stock is expected to remain a high-conviction play for those betting on sustained gold prices and rising demand for near-term production in geopolitically stable jurisdictions.