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Buxton Resources attracts A$2.1m investment from National Business Holdings Group

Buxton Resources attracts A$2.1m investment from National Business Holdings Group

Buxton Resources (ASX: BUX) will add A$2.1 million to its cash reserves following investment by National Business Holdings (VU), a private company and member of the National Business Holdings Group, including a A$1.5 million share placement to be completed at a premium to the company's last traded share price of A$0.20.

The National Business Holdings Group has extensive investments within and outside of China, along with a substantial network of business contacts within the Chinese private and public sectors.

Buxton is now well funded to pursue its exploration objectives, with the funds to facilitate exploration programs at the Widowmaker Nickel-Copper Project and Yalbra Graphite Project.

Buxton will issue over 5 million shares to National Business Holdings at $0.25 each, a 25% premium to the last traded share price, raising $1.25 million under the company’s 15% capacity.

Subject to shareholder approval, Buxton will then issue a further 1.15 million shares at $0.25 each to raise an additional $287,500.

The remainder of the investment will come from an exclusive marketing agreement covering the Zanthus Magnetite Project, under which National Business Holdings will be granted the right to market the project to potential purchasers or partners over the next 15 months.

In return, National Business Holdings has agreed to pay Buxton a non-refundable licence fee of $600,000.

Exploration potential

The Widowmaker Project is located 22 kilometres along strike from Sirius Resources (ASX: SIR) new Nova Nickel Discovery in the Fraser Range nickel province, which delivered an intercept of 4 metres at 3.8% nickel and 1.42% copper in the first reverse circulation drill hole.

Multiple surface nickel-copper-platinum group elements (PGE) anomalies have been identified at the project.

Airborne magnetic data indicates that the broad mafic-ultramafic lithological package that hosts the Nova discovery extends north-eastwards into Buxton’s Widowmaker Project area, and corresponds with some of the nickel-copper-PGE calcrete surface anomalies.

Buxton has planned an aggressive exploration program for Widowmaker, with an infill calcrete surface geochemistry program currently underway.

Further exploration will include an air core drilling program to test metal anomalies defined in surface geochemistry, and electromagnetic survey to identify conductors that may represent massive or other sulphide mineralisation styles, and reverse circulation drilling of any electromagnetic conductors or targets identified through air core drilling program.

The Yalbra Graphite Project is a highly prospective graphite prospect located in Western Australia’s Gascoyne Region.

Buxton has defined an exploration target of 8 to 12 million tonnes at 7 to 11% carbon.

Coarse flake graphite has been identified in historical drill logs, with historical drill results returning 23.5 metres at 19.5% carbon from 9 metres, including 15.2 metres at 25.2% carbon.

Broad, high grade near-surface graphite mineralised zones have been shown to extend over 4 kilometres of strike length, with the mineralisation open along strike and at depth.

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