IPO: raise $10 to $15 million to fund aggressive exploration plan; drilling programs planned and set to commence alongside IPO Offer Price: 25 cents per share Market Cap: $43.89 million
Company Overview:
The Company is focused on gold exploration and development, with a significant platform for growth through its portfolio of projects and infrastructure in the central Gawler Craton of South Australia. The Company's portfolio is centred around two, 100%-owned projects known as Tarcoola and Tunkillia. Each of these projects have newly estimated JORC (2012) Mineral Resources, known extensions of mineralisation, and the potential for large-scale extensions and repeats of mineralisation across large land packages. This positions the Company with a ~1.1Moz Au JORC (2012) Mineral Resource base, two exciting scale exploration projects, and the only gold processing infrastructure in a highly prospective region. Barton is proposing to undertake an IPO to raise up to $15m to fund immediate drilling and other work programs capable of unlocking value in these assets.
Investment Highlights:
Prime Location: Projects located in South Australia’s central Gawler Craton, a world-class mineral jurisdiction. ✓ Land Holding & JORC Resource: ~4,730km2 of tenements and JV gold rights. ~1.1Moz Au at 1.2 g/t Au attributable mineral resources base. ✓ Two Fully-Permitted, Historically Producing Mines: Last producing in 2018. Tarcoola pit in excellent condition. ✓ Management Team: Experienced company and project developers and strong technical partners. ✓ New Approach & Upside Potential: Dedicated exploration focus targeting regional-scale structures and large-scale mineral resources. New technical work demonstrates significant new upside opportunities: – Tarcoola: new regional structural model and ~14km long target corridor for potential repeats of the high-grade Perseverance Mine. – Tunkillia: new higher-grade model with higher-grade zones enhances future development options. – Two underexplored, large-scale systems. – Significant discovery and extension potential.
Portfolio Overview:
4,730km2 of tenements and JV gold rights, 2 fully-permitted mines, ~1.1Moz JORC (2012) Resources base, multiple advanced exploration targets and established infrastructure in a top global mining jurisdiction. SOUTHERN HUB: ✓ 981koz gold JORC (2012) Resources base at large scale advanced exploration projects NORTHERN HUB: ✓ 100% owned ~650ktpa mill offers low capex/risk production and consolidation options
Compelling Value Proposition:
PRICED AT A ~50% DISCOUNT TO OTHER COMPARABLE EXPLORERS/DEVELOPERS, DESPITE HAVING: ✓1.1 Moz JORC resource, 2 permitted brownfield mines, optionality value through infrastructure and an extensive land package in an under-explored, fertile region VALUE UPLIFT TO BE DRIVEN BY: ✓Closing the valuation multiple gap ✓Growing the resource base (very obvious resource extension targets and can leverage off historic drilling) ✓Attractive new discovery potential ‒ 50km shear zones at Tunkillia; historic drilling has only scratched the surface ‒ 14km newly identified target zone at Tarcoola; extensive high grade historical workings; undrilled targets for repeats of existing pit ‒ Extensive tenement position in a clearly fertile region – recent high grade exploration success from several neighbours
CAPITAL STRUCTURE ON ADMISSION:
At minimum subscription & At maximum subscription
Existing Shares on Issue 103,317,915 103,317,915
Shares Issued (Convertible Notes) 12,275,284 12,275,284
Shares Issued (Offer at $0.25) 40,000,000 60,000,000
Total Shares 155,593,199 175,593,199
Market Cap ($0.25 / Share) $38,898,300 $43,898,300
Total Cash (pre-Offer costs) $11,700,000 $16,700,000
Notes / Escrow:
Board, management and all options escrowed (24 months)
Of the ‘Other Existing Shareholders’, ~69% will be escrowed (24 months) ‘promoters’. The remainder acquired their shares for $0.40 - $0.48 / share
~$2.5m Convertible Notes @ 20% discount to IPO price (~3% escrowed for 12-24 months)
Except for Convertible Notes, all tradeable shares acquired at a significant premium to IPO price
Board & Management:
• Mark Connelly Non-Executive Chairman
• Alexander Scanlon Managing Director & CEO
• Richard Crookes Non-Executive Director
• Christian Paech Non-Executive Director
• Neil Rose Non-Executive Director
• Graham Arvidson Non-Executive Director
