Buxton to Fast-Track Graphite Discovery with New Funding

3 May 2023 10:36
Buxton Resources oversubscribed SPP

Buxton Resources Ltd (ASX:BUX) has announced that its Share Purchase Plan (SPP) has closed oversubscribed, with applications totalling $2.791 million, exceeding the targeted amount of $2.5 million.

Shareholders drive SPP momentum

The strong interest from existing shareholders has resulted in a scale-back of applications, with eligible shareholders potentially receiving less than the requested amount of new shares.

The Company plans to issue and allot 15,625,000 new SPP shares on May 9, 2023, according to the indicative timetable in the Offer Document.

The funds raised from the SPP will be used to support exploration and development activities for the Graphite Bull Project, the Company’s existing grass-roots exploration portfolio in Western Australia, and for other ongoing project assessments. In addition, the funds will also be directed towards working capital and the costs of the offer.

Graphite Bull Project holds promising hopes

Located in the Gascoyne region of Western Australia, the Graphite Bull Project has been identified as a significant graphite deposit, with recent drill assays returning thick graphite intersections over considerable widths at grades up to 24.8% TGC. Buxton is now prepared to test the Project’s battery metal potential after dispatching its first bulk sample of >95% TGC flake concentrate to Germany for downstream test work.

The oversubscribed SPP and the strong interest from existing shareholders are positive indications of investor confidence in Buxton Resources’ future prospects, bringing it closer to its goal of becoming a leading graphite producer in Australia.

BUX’s Australian Stock Exchange-listed share price is currently trading at 0.17c (9:13 am UTC+ 8 hours).

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