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- Buxton Resources (BUX) enters a trading halt regarding an upcoming capital raise
- It isn’t clear how much the company is raising nor how it will spend the funds but the details are expected to be revealed by April 4
- Buxton did recently enter a farm-in deal with ASX-listed Trek Metals (TKM) who may potentially earn up to a 75 per cent stake in Buxton’s Centurion project in WA
- Trek needs to spent $3.5 million on exploration to earn a majority stake and Buxton will be free-carried at 25 per cent until a decision to mine is reached
- Company shares last traded at 10.5 cents on March 30
Buxton Resources (BUX) has entered a trading halt regarding an upcoming capital raise.
It isn’t yet clear how much Buxton will raise or how it will spend the money once it’s received.
On March 28, the materials stock announced it had entered into farm-in and joint venture deal with ASX-listed Trek Metals (TKM) for Buxton’s wholly-owned Centurion project.
The Centurion Project is located in the Great Sandy Desert, roughly 400 kilometres south of Halls Creek, Western Australia.
Trek will be required to drill test an iron oxide copper-gold (IOCG) target within 21 months of signing of the joint venture. It will solely fund $500,000 of expenditure under the first stage to earn a 51 per cent interest in the project.
Trek can eventually earn up to a 75 per cent interest in Centurion by spending another $3 million on exploration.
Buxton Resources will be free-carried at a 25 per cent project equity level until a decision to mine is reached and the companies can enter a co-contributing joint venture.
At the end of the first half of FY22 (December 31, 2021), the company had $1.96 million in cash compared to roughly $2.7 million at the end of June that year.
Whether the upcoming capital raise will be applied to field activities or boosting its financial position is not yet certain but the details should be revealed by Monday, April 4 when BUX expects to come out of the halt.
Company shares last traded at 10.5 cents on March 30.
