Brightstar Raise $3.5 Million to Accelerate Exploration and Development Activities

31 July 2023 14:58

Brightstar Resources Limited (ASX: BTR) has announced a successful capital raising of $3.5 million to further its exploration and development activities, with the proceeds from this share placement, along with the anticipated cash flow from the Selkirk Joint Venture mining and gold production in early 2024, providing the necessary funds to advance its strategy of becoming a near-term, low capital expenditure (capex) gold producer at the Menzies and Laverton Gold Projects.

Placement Details

The oversubscribed placement saw the company issue approximately 318.2 million shares being issued at $0.011 per share to satisfy the firm commitments attracted from both new and existing institutional and sophisticated investors, with Brightstars directors also committing $150,000 to the placement.

The raise follows the Company’s recent strategic tenement swap with Ardea Resources Limited (ASX: ARL) to bolster exploration and development at the Menzies Gold Project by expanding its tenure with an additional 12 square kilometres of highly prospective gold ground.

Utilisation of Funds

Funds will primarily be used to accelerate exploration across Menzies and Laverton as the explorer aims to take its known >1Moz gold resource into production.

Planned resource definition drilling will target key areas across the portfolio to provide information vital for studies aimed at determining the optimal pathway towards production by detailing mine design, processing pathways to reduce risk, streamlining further workflows, and optimising project outcomes.

Additionally, the Company will undertake mapping and sampling at its greenfields exploration targets at the Cork Tree Well North, Comet Well and Menzies Northern Trend, with follow-up air-core drilling also planned to test prospective targets.

One of the crucial catalysts for Brightstar’s progress lies in the pending assay results for approximately ~4,000 meters of reverse circulation (RC) drilling recently completed at Menzies and Laverton. These results, expected to be reported in August, will provide valuable insights into high-grade structures within and outside the current resource envelopes.

Catalysts and Outlook

The upcoming 6 to 9 months are projected to be packed with significant catalysts for Brightstar, including the commencement of mining and gold production at Selkirk, ongoing exploration results, and the completion of a Scoping Study in the third quarter which aims to outline production pathways from Brightstar’s substantial +1Moz Au portfolio.

Brightstar’s Managing Director, Alex Rovira, expressed his satisfaction with the well-supported capital raising, highlighting the substantial support from both existing and new sophisticated and institutional investors.

“The capital raising allows Brightstar to continue its exploration and development activities across its portfolio and ensure we are well funded until anticipated proceeds from the Selkirk mining JV at Menzies in early 2024. This is line with our strategy of utilising early revenue opportunities with the resources in the ground to fund the bigger-scale development activities of the Company which will be fully delineated in the upcoming Scoping Study.”

“We have hit the ground running as a merged entity in recent months with significant drilling programs at Menzies and Laverton conducted and look forward to continuing this strong momentum as we progress our strategy of balancing exciting greenfields exploration with development of key assets within our gold resources at Menzies and Laverton in the near future.”

BTR’s Australian Stock Exchange-listed share price is currently selling at 1.2c (2:06 pm UTC+ 8 hours).


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