$5 Million Placement to Fund Strategic Asset Purchases and Accelerate Exploration and Pre-Feasibility Study Momentum

Brightstar Resources Limited (ASX: BTR) (Brightstar or the Company) is pleased to announce a strongly supported capital raising of $5 million (before costs). The Company has received firm commitments from sophisticated and professional investors for the Placement comprising approximately 455 million shares in the capital of the Company at an issue price of $0.011 per share from within the Company’s available placement capacity under ASX Listing Rules 7.1 and 7.1A (Placement).

• Firm commitments received for a Share Placement to raise A$5 million at $0.011 per share
• The placement was cornerstoned by two high quality investors, Collins St Asset Management Pty Ltd and a US family office (increasing the size of existing shareholding), for a total commitment of $3.5 million
• Placement proceeds and the expected cash flow from the Selkirk JV mining and gold production in early 2024 will see Brightstar funded to accelerate exploration activity and complete the Pre-Feasibility Study for the Menzies & Laverton Gold Projects mine restart
• The strategic Placement enables Brightstar to purchase key mine site equipment and infrastructure at a significant discount to replacement costs, generating significant capex and opex savings compared to the September Scoping Study assumptions
• Funds will also be used to increase activity across Brightstar’s Menzies and Laverton exploration portfolio, including:

• Greenfields exploration across both Menzies and Laverton Gold Projects and an expected resource update during 1H 2024
• Infill and extensional drilling at key resource areas within Brightstar’s +1Moz Au portfolio to advance the deposits through mining studies and towards production
• Completing the Pre-Feasibility Study for the restart of mining operations
• Strong value catalysts through 2024 including cash flow from Selkirk gold production, ongoing exploration results, resource upgrade, completion of the Pre-Feasibility Study on the restart of mining and production from Brightstar’s +1Moz Au Mineral Resource inventory

Brightstar’s Managing Director, Alex Rovira, commented: “We are incredibly pleased with this very successful capital raising which was underpinned by Collins Street Asset Management and a US family office increasing the size of their existing holding with the US family office to become a substantial shareholder in the Company, along with strong support from other key existing and new sophisticated and institutional shareholders.

Importantly, the fundraising enables Brightstar to execute key asset purchases that will crystallise significant capex and opex savings when compared to the economics outlined in the September Scoping Study. The mining camp and CIL tanks being purchased for cash consideration at approximately 10% of the replacement cost represents a compelling use of funds for Brightstar that make a significant and tangible positive difference to our mine restart plans.

Brightstar is now well funded to accelerate its exploration activities across the Menzies and Laverton Gold Projects, targeting an upgrade of the existing JORC Mineral Resource upgrade in 2024. With the addition of anticipated proceeds from the Selkirk mining JV at Menzies in early 2024, Brightstar will be fully funded to complete its mine restart Pre-Feasibility Study during next year.

Brightstar has 5,000m of RC drilling at the Menzies Gold Project to complete in the remainder of Q4 CY23, along with comprehensive infill and extensional RC and diamond drilling campaigns early in the new year at Cork Tree Well deposit in Laverton and across the Menzies Gold Project for inclusion within the Pre-Feasibility Study.”

Click here for the full ASX Release

This article includes content from Brightstar Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.