Brightstar Resources Ltd (ASX: BTR) (Brightstar) is pleased to announce it has received firm commitments to raise approximately $24 million (before costs) in a two-tranche share placement (Placement) to professional and sophisticated investors at $0.015 per share (New Shares). This represents a discount of:

• nil discount to the last close price as at 30 July 2024;
• 2.1% discount to the 5-day VWAP up to and including 30 July 2024; and
• 5.7% discount to the 10-day VWAP up to and including 30 July 2024.

The Placement received very strong support from a range of new and existing institutional investors, including a number of specialist gold and natural resource funds, with overall demand received for new shares strongly in excess of the $24 million Placement size.

The Placement follows:

entry into a Scheme Implementation Deed with Alto Metals Ltd (ASX:AME) (Alto), pursuant to which Brightstar proposed to acquire 100% of the shares in Alto (Scheme); and Brightstar, via a newly incorporated wholly owned SPV ‘Montague Gold Project Pty Ltd’ (MGP), agreeing to acquire 100% of the gold mineral rights in the Montague East Gold Project from Gateway Mining Limited (ASX:GML) and its wholly owned subsidiary Gateway Projects Pty Ltd (GPWA) and Gateway and GPWA’s interests held in certain mining tenure in respect of the Montague East Gold Project (Montague Acquisition).

The Scheme and Montague Acquisition will consolidate highly prospective exploration ground in the Sandstone region (Sandstone Project) which will complement Brightstar’s existing production, development and exploration asset portfolio.

Brightstar’s Managing Director, Alex Rovira, said:

“This is a significant and transformational transaction for Brightstar, with the Alto Scheme and acquisition of Gateway’s Montague East Gold Project adding significant mineral endowment into our portfolio. Importantly, it adds a third development hub to Brightstar that also delivers the critical mass of gold resources that underpin a fast-tracked exploration and development phase of work to move the Sandstone hub towards monetisation. We are extremely excited to get rigs spinning at Sandstone to aggressively grow the currently defined mineral resources.

The strong support in the capital raising from well credentialled, dedicated long-only gold and natural resources- focused institutional investors is a testament to the quality of the package of assets and development plan at Brightstar, against the backdrop of a rising AUD gold price environment.”

Figure 1- Brightstar's WA portfolio post completion of the Scheme & Montague Acquisition

Proceeds from the Placement will be applied to fund a fast-tracked drill out of the Sandstone Project and for general exploration and development activities on Brightstar’s portfolio.

The New Shares are expected to settle on Wednesday, 7 August 2024 and be issued and commence trading on the ASX on a normal basis on Thursday, 8 August 2024. New Shares issued under the Placement will rank equally with existing shares on issue.

Tranche One of the Placement to raise approximately $17.5m (before costs) will be conducted within Brightstar’s available placement capacity pursuant to ASX Listing Rules 7.1 and 7.1A (Tranche One) and Tranche Two, to raise approximately $6.5m (before costs), will be subject to shareholder approval to be sought at an Extraordinary General Meeting (EGM) expected to be held in mid-September 2024 (Tranche Two).

In Tranche One, a total of 1,166,666,667 New Shares will be issued. 700,000,000 of these New Shares will be issued pursuant the Company’s placement capacity under ASX Listing Rule 7.1 and a total of 466,666,667 New Shares will be issued pursuant the Company’s placement capacity under ASX Listing Rule 7.1A.

Under Tranche Two, which is conditional on the receipt of prior shareholder approval pursuant to ASX Listing Rule 7.1, the remaining 433,333,334 New Shares are proposed to be issued.

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