Barton Gold Holdings (ASX:BGD) has secured binding commitments to raise AU$25.5 million before costs through a placement of 30 million shares priced at AU$0.85 each, representing a 7.5% discount to its 10-day volume-weighted average price, according to a Monday Australian bourse filing.
The new placement results in a modest equity dilution of just over 11%, preserving shareholder value, with the company estimating total placement costs at under 2.5% of the proceeds, per the filing.
The proceeds will be used to progress the company's Gawler Craton strategy, including a definitive feasibility study and recommissioning work at Challenger, resource conversion and completion of the pre-feasibility study at Tunkillia, and continued drilling and metallurgical testing at the Tolmer silver discovery, the filing added.
The company's shares rose 2% in recent Monday trade.