Barton appoints credit adviser for Challenger Stage 1 financing
ASX-listed Barton Gold has appointed Bedrock Advisory Partners to manage the credit component of its financing process for targeted Stage 1 operations at its Challenger gold project in South Australia.
The appointment comes as Barton advances a definitive feasibility study (DFS) and upgrade drilling programme for its proposed Stage 1 operations at the Central Gawler mill, following recent Challenger Joint Ore Resource Committee (2012) mineral resource upgrades to 313 000 oz of gold.
Barton’s wholly owned Central Gawler mill, located adjacent to the Challenger mine, is the only gold processing facility in the region and is expected to provide leverage for a relatively low-cost transition to operations.
The ongoing DFS is targeting baseline Stage 1 operations using historical higher-grade tailings and limited near-surface material, aimed at maximising development optionality at Challenger underground and the company’s Tarcoola, Wudinna and Tolmer projects.
The company said it had already held early discussions with multiple credit, minerals trading and investment groups that had expressed interest in participating in or financing the proposed operations.
Bedrock will assist Barton in formalising and managing a structured process to assess the range of potential financing options.
“With record high gold prices and over 300 000 oz gold Joint Ore Resource Committee resources confirmed, the opportunity to leverage our existing, fully permitted infrastructure at the Central Gawler mill to ‘Stage 1’ operations has never been more attractive," Barton MD Alexander Scanlon said.
“Reinstatement of the CGM will also materially enhance the exploration and development optionality of the historical high-grade Challenger underground mine and Barton’s ‘regional enhancement’ assets Tarcoola, Tolmer and Wudinna, each of which could potentially provide high-grade gold and silver mineralisation for processing through the CGM.
“We will evaluate a range of potential ‘Stage 1’ financing options which may include a combination of conventional or structured credit, trade finance, commodities trading, and equity approaches. Based upon a thorough evaluation of options, and how these may complement the results of our ‘Stage 1’ DFS, we will pursue the best approach for Barton. Bedrock’s deep credit and technical expertise will be an invaluable asset to the ongoing refinement of our strategies.”
